Grocery giant Kroger plans to close two stores in Seattle after the city passed a $4-an-hour hazard pay mandate for grocery workers. The local officials and worker advocates are riled up over it, pointing to the company’s booming sales as the pandemic continues to claim more than 2,000 lives a day.
Kroger has been more profitable this year than in the past due to strong demand during the pandemic. The Kroger Co. posted virtually flat overall sales in the fiscal 2019 third quarter and fell short of Wall Street’s earnings projection. They can turn around at any time because of their extremely small profit margins.
They are closing the Seattle stores because the hazard pay would raise costs at the two Quality Food Centers (QFC), which were already underperforming.
“Unfortunately, Seattle City Council didn’t consider that grocery stores — even in a pandemic — operate on razor-thin profit margins in a very competitive landscape,” the company said in a statement. “When you factor in the increased costs of operating during covid-19, coupled with consistent financial losses at these two locations, and this new extra pay mandate, it becomes impossible to operate a financially sustainable business,” The Washington Post reported.
The Left doesn’t understand how things work. That is why they want to control everything. They would keep failing stores open until the entire chain went down.
Remember when people were happy to have a job during this pandemic?
The city of Seattle passed a $4 an hour hazard pay mandate for grocery workers. Since Kroger is in the business of making a profit with a small profit margin, they would do better shutting down stores.
Bernie Sanders, who appears to have no understanding of how economics works, called this “the height of corporate greed.”
That’s because, as a communist, he has no clue. Capitalism has given the greatest rewards to the greatest number of people of any economic system that ever existed. What we now see forming with Democrats is an unholy alliance of big corporations, big tech, big unions, and the Democrat [socialist] party. They are doing it for power. That is not capitalism, It’s crony capitalism, otherwise known as crony socialism.
This is the height of corporate greed. The owners of Kroger choose to shut down stores instead of simply paying the workers risking their lives who make their corporate profits possible. Absolutely despicable.https://t.co/oFjbKuuTMM
— Bernie Sanders (@BernieSanders) February 18, 2021