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June 24, 2009 11:36 PM UTC

About Those Grocery Store Profits...

  • 61 Comments
  • by: Colorado Pols

We talked last week about the overwhelming rejection of the latest proposed contract between King Soopers (owned by Kroger Corp.) and their unionized employees in Colorado. As you know the employees rejected the latest contract by nearly unanimous margins in most areas of the state, a significantly less fractious result than many had anticipated.

As we said before, the employees have done a good job communicating their side of the story in local media, focusing on generally growing and recession-proof profitability in the grocery business to refute management’s assertion that proposed wage freezes and pension cuts are necessary due to the “current economic climate.”

The Denver Business Journal gave the employees’ argument some substantial heft yesterday:

Kroger Co. — parent of Colorado’s largest grocery chain, King Soopers, which is in contract talks with its workers — reported Tuesday that its profits were up 12.7 percent in the first quarter.

Cincinnati-based Kroger (NYSE: KR), the nation’s largest supermarket company, posted a profit of $435.1 million, or 66 cents per share, for the quarter, up from $386 million, or 58 cents last year, a year ago. Analysts had expected earnings of 61 cents a share…

The supermarket chain confirmed its full-year profit forecast of between $2 and $2.05 per share and for same-store sales growth of between 3 percent and 4 percent.

Kind of makes you wonder what the wage and benefit cuts were for, doesn’t it? The longer this dispute drags out, and the more evidence emerges that management doesn’t have any real justification for seeking painful concessions from their workers–even opening themselves to the charge of exploiting the economic crisis to try–the more likely it becomes that public opinion will turn against management. As we’ve said, this dispute has dynamics in play like social networking technology and a robust outreach strategy that didn’t exist in 1996, the last major grocery labor dispute in Denver. The conventional wisdom that complacently assumes nobody’s paying attention, a misconception that guides everything from management’s bad faith to Governor Bill Ritter’s veto earlier this year of House Bill 1170, might get turned on its head before this is over.

Comments

61 thoughts on “About Those Grocery Store Profits…

  1. are damn lucky to even have a job.

    If they don’t like what they are being offered for wages and benefits, quit and try finding work elsewhere.

    And good luck if you do.

    1. What were Kroger’s numbers in the last year or two?  As I recall they had slim margins and little return to shareholders.  This may make up for it.

      Also, if Kroger takes a downturn over the next year or so, would the employees take a cut too?  Not likely.  That would be disastrous for the company’s survival.

    2. There is only one way to respond to a dumb fucking comment like this: You sir, are a douche bag.

      Thank you for the outstanding contribution you have made to the human race. Now your time is almost up, Gramps. Enjoy your retirement into oblivion.  

      1. over the feisty things I say, but you let crap like that just slide?

        Is that what constitutes a Republican perspective?

        Pathetic. In soooo many ways.  

      2. hell does “sufimarie” mean anyway? Did you not learn how to spell when you were little?

        You do not know me so back off the names eh? I’m 52 and no grandpa. I ride Harleys and Titans and am tattoo’d, but I am no douche bag. It is obivous that you are a narrow minded speck of a person living in a fantasy world.

        Tell ya what, quit your job (If you even have one. Or are you living on everyone else’s dime too?) and go out now and try to find work. Then come back and call names to people that have been living in the real world all along.

        Those people working at King Soopers and the other chains are damn lucky to have a job. I would love to see the grocery chain just let them go as they would have literally thousands of applicants begging to replace them.

        Grow up kiddy. It is a tough world out there and mommy and daddy can’t support you forever.

        1. I guess it’s time for all business owners out there to just negotiate everyone’s salary back down to minimum wage, then.  Yours too, Gecko.

          I mean, if you don’t like it, just go out and try to find another job.

          Just think of the savings.  (Just think of the economic meltdown…)

          1. of this economy we are in is that IF you are lucky enough to be working, be thankful. If you aren’t thankful, watch out because there are thousands upon thousands that would be more than happy to replace you.

            I am close to being in the same boat. After over 24 years at the same company, the economic turn down has killed our business. I gladly gave back some of my dollars per hour plus eliminated any overtime as did everyone else here, in order to hopefully save our jobs. And knowing there are very few other jobs out there, I am nervous. We might have to give even more concessions back just to keep on the payroll.

            That said, how can anyone say these workers shouldn’t do the same thing? Nobody has addressed my line of thinking about what would they do if they suddenly lost their job.

            They are lucky to be working. We are all lucky to be working.  

            1. These people aren’t in a position where their company is going bankrupt because of the economy, though.  Their business is reporting an increase in profits.  That increase is due in part to the workers who are being asked to take a pay cut.

              Am I thankful that I’m working?  Sure.  I’ve been unemployed in a crappy economy before (twice).  But if I’m working for a company making a healthy profit in a downturn, I don’t expect them to come after my benefits and pay.  I might stay with a company that does that, but only until I find a more responsible company that values me as a contributor instead of an expense.

            1. Just curious…Do you ride your Harley to Sturgis or take it there in some air-conditioned pick up, etc. like most of the middle class, graying, pot bellied bikers who attend?  As for the fucker part, if the shoe fits…  

              1. .

                but “middle class, graying, pot bellied bikers” is pretty much the entire crowd nowadays.

                Pretty tame.  

                The local sheriff no longer hires Hells Angels to keep the peace.  Haven’t had a murder there in years.  This year Wayne Newton and Liberace are scheduled to have concerts during the rally.

                .

                1. but have witnessed it while vacationing in S. Dakota and seen folks I know take off for it and, yeah, that was kind of the point. Isn’t Liberace dead? Oh, and some of those tattoos don’t survive middle age spread very well, especially on 50 something big bottom biker mamas who might want to wear a few more square yards of cover.  

                2. Sons of Silence, Banditos, etc all have their own property up there now. They have for some time now. They do wander into town but it isn’t worth the hassle from all the renta cops they hire for the two weeks.

              2. a wise ass.

                I have been “riding” to Sturgis sine my first time in August 1984. I have only missed it a few times in all these years. In 1990 I rode my Shovelhead up on Friday, bought my t-shirts the next morning and then rode home all the way in the rain.

                So until you get your fat ass out of your cage and on a bike, shut the fuck up. You know not what you speak.

                And as far as fat goes, I am far from fat. 34″ jeans to be exact.

                What the hell size doe you pry yourself into?

              3. just so you know, even though I know you don’t care, I just got back two weeks ago from my ride to Hot Springs, Arkansas and back to take care of my parents grave site.

                I ride my bike. What do you ride? A fucking Toyota?

                1. “A fucking Toyota!” What a stinging comeback!

                  Hmmmm, despite the lack of ‘pubs (something I am truly sad about) I think we were better off without you.

                2. I am so intimidated and overwhelmed in the presence of your revving engine dependent manhood.  I feel a swoon coming on.  Won’t somebody pu-leeze be a dear and hurry on over here with the smelling salts?  

        2. “I’m 52 and…I ride Harleys and Titans and am tattoo’d, but I am no douche bag.

          Sorry, that’s like saying “I inhale oxygen and exhale carbon dioxide, but I don’t breathe.”

          1. are calling my dead dad a douche bag too?

            He was 52 once and rode harleys since before your dumbass was even born. He died from an accident riding his.

            Watch your self. You will run you mouth to the wrong person “in person” some day and get your ass beat.

            1. No need to bring your daddy up, Gecko. Can’t you fight your own battles without bringing your pappy into it?

              Oh, and by the way? I don’t think you’re a douche bag for riding Harleys or having tattoos. I think you’re a douchebag for being an unsympathetic, self absorbed asswipe. Just to clarify.  

              1. your childish remarks as I know you like most of the rest of the far left liberal posters here have to resort to insults whenever someone doesn’t agree with thier socialist agenda, but just so you know, I did not start this shit. I simply stated an opinion about workers thinking they are owed something when in reality they are damn lucky to even have a job.

                Then you and your narrow minded girlie friends decide you don’t like someone with a different opinion and try and gang up on me. Your buddies threw the first insults out there, not me. And as usual they do it knowing they are safe and sound in thier little cubicles just like you.

                I call them pussies.

                You are one too.

                Try talking like a man……man to man and I’ll have lot’s more respect for you and this site.

                1. you stupid fuck, it would be, in reality, completely impossible to talk to you “man to man.”

                  As for having respect for me, who fucking cares what you think about any of us? You’re a vicious, racist little asshole and the only reason you’re getting pissy is because people are no longer ignoring your bullshit but are calling you out for the witless fuckwad that you are on this site.

                  Pussy.

                  1. had a real tough time, and maybe still do, getting a man having such a foul mouth and bad attitude as you seem to have.

                    Sure is funny how you “progressives” throw out such nasty names whenever you run across someone with a different opinion from yours.

                    Get a life. It is a big world out there little boy, or whatever you are. There are people on the left and even the right side of the spectrum.

                    I know that can be hard for your mind to imagine but really  it is true.

                    1. Is that the best you can do, sweet pea? Wow, even for you that was kind of sad.

                2. “I was just expressing my opinion in the most assholish way possible and everyone starts picking on me! Waaaa!”

                  It takes a lot of nerve for you, of all people, to say someone should talk “man to man.” Try practicing what you preach.

              1. to bet that if you were standing toe to toe with me right now, you wouldn’t be talking so tough. Calling people names along with their parents when you are safe and sound behind your computer screen shows what a bad ass you really are…..or wait, I guess I meant to say pussy.

                Pussy.

                1. Just pointed out that your statement contradicted itself. As for your internet tough guy persona, I’m sure that gets you lots of hot (for 50-year-old biker girlfriend) chicks. When you’re hanging out at the biker bar, trying to look cool in front of people half your age, and you hear them tell stories of all the people they beat up, do you belly up to their table and say, “Yeah? Well on the internet this morning, I called some guy a pussy”?

                  And does a hush come over them as they slowly look up in awe?

                  1. Happily married so I’m not out looking for chicks.

                    And besides, you are the one that come on like a tough guy, not me. I am just defending myself.

                    Explain why you feel the need to act so tough by calling names to people with differing opinions than yours.

        3. about spelling errors when two lines below you make your own.

          So sorry if it’s some newfangled kiddie (another spelling error you made but, whatever)  mentality to not wholeheartedly thank the boss for the scraps while his profits are in the double digits.

          “Thank you sir, may I have another?”

          Silly kids.

          GET OFF MY LAWN!

          1. .

            Sure doesn’t need me to defend him.

            But why all the venom ?  

            Sure, he made fun of Sufi Marie’s pseudonym, but nothing vicious.  

            Sufi is a sort of Muslim mysticism, which has been compared to Kabbalah, a form of Jewish mysticism, and Padre Pio of the Catholic Church.  

            A Sufi would never engage in the sort of vitriol exhibited here, so the name is a sort of joke, I assume.  I think it means “lighten up, don’t take me or yourself too seriously.”

            .

            1. you’re so sweet. Thank you for trying to smooth things over. It’s very important that we all be on civil terms with one another. It helps us to get things accomplished and I recognize that. So many things positive things and great accomplishments to better the political atmosphere have come from the conversations that started right here, on this very blog!

              I know I can come off as brash and overextending my feminine boundaries but I really sincerely hope that you can recognize it when the others do it as well. I think fairness in practice is working towards eliminating double standards. I appreciate your continued efforts at policing that sort of thing.

              Thank you for that lesson in Muslim mysticism. I’ve never heard of that before. I’ve had this pseudonym for a few years now and this is all news to me! I don’t even know where I got the name? I think a man gave it to me.

              I’ve always seen your posts as progressive and enlightening and I look forward to our continued relationship.

              Gecko, I’m really very sorry if I hurt your feelings. I hope you can find it in your heart to forgive me the next time you are filling up your gas tank on one of those motorcycle rides. (PS bikes scare me, I admire your ability to master such a beast).

              I guess I just have that fiery youthful temperament. I will try to calm down, I understand how very un-ladylike it is.  

            2. I guess you were wrong about Gecko not being vicious! He is threatening to beat up girls on this thread for talking about his squirt-sackiness.

              I know I should probably just let it slide, being as boys never like it when their fallacies are pointed out to them by fairer sex but, perhaps your energies to soothe and educate would be better directed towards someone else.

              Thank you for everything.  

  2. .

    … or did you really leave out a key piece of information without which we cannot assess whether they really do need to wring out concessions to maintain profitability ?  

    In order to gauge whether or not the people who technically own the enterprise, the stockholders, are making a reasonable return on their investment, don’t we need to know the price of a share of stock ?  

    For example, if a share of Kroger is in the ballpark of $100 per share, then they are getting roughly a 2% annual return on their investment.  If that were the case, corporate management better slash costs anywhere they can, whether from hourly workers’ compensation or perquisites for execs, because that kind of ROI will lead to huge sell-offs, further depressing the price of a share, so that the owners suffer relatively large losses.  

    On the other hand, if the price of a share is in the $10 range, a 20% return looks kind of greedy, and corporate could afford to play nice in negotiations.  

    As I understand it, people buy stock to make money.  Though not exactly correct, in a way they are sort of investing in the company.  Not actually, that only happens at IPO time, but at least they are buying an equity stake.  As the diluted owners, they pay management to maximize their returns, either in dividends or stock value appreciation or in some way.  The thing that makes money belongs to them, and they have the right to manage or mismanage it as they see fit, until they start taking bailout money.  

    When you opine that “management” is trying to make too much profit on behalf of the owners, I rue the state of public education in economics and business.  

    .

    1. If Kroger’s stock price goes up because they’re more profitable, then they can issue more shares and take the money and invest it into new stores, hire more employees, etc.  That’s a good thing, right?

    2. for the value of the company. In general, sock prices are down today, even for companies that are making a healthy profit.

      And for companies like grocers with low margins and high cash flow, dividends are a better metric for ROI.

      just sayin…

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