Quote:
Originally Posted by Slava
Well I think I addressed the point made by the Loblaws article here. The EPS rose, but the revenues aren't rising at the inflationary clip. The reason they're showing the improved bottom-line is because of other factors, obviously.
I know what you're trying to do here. You're saying that profits are higher, ergo the company is shafting people. But the revenues/sales are only up a few percent from the year before. That doesn't account for the increase. They've shown a better profit because there are less shares outstanding and because they've reduced costs. I'd also posit that they've increased their bottom-line selling products with better margins, and that's referenced in that article as well.
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Seems like a good thing to investigate to see if there are issues. As mentioned - two companies - Loblaws and Empire (Sobeys) have a large percentage of control in the market (Metro being 3rd). They of course - rightly - want to add Walmart (and Amazon) to that list.
They've engaged in price fixing before -
https://en.wikipedia.org/wiki/Bread_...xing_in_Canada - so its not an outlandish claim.