Replies to post #93460 on Value Microcaps Motherboard

[lentinman]

Rogue:

I think I agree. Whether Wal-Mart is, or is not, subsidizing food prices on the retail end has nothing to do with raw food prices to everyone else. It might have something to do with what they can sell retail for - and thus their margins, but I don't agree with the quote the way it was stated.

Except for hamburger, I buy all my food at Wal-Mart. There is no logical reason not to. However, I have noticed prices have ticked up even there over the past year.

At the local Super Wal-Mart (an unbelievably nice place IMO), there are a ton of people buying their food there and this is in a pretty upscale area. I fail to see how Wal-Mart can be subsidizing something that represents such a huge part of their business. I'm inclined to think they 1) are happy with somewhat lower margins because it's just that much more revenue with little additional expense and 2) they squeeze the crap out of suppliers.

Len