[lbo-talk] Re:employment

andie nachgeborenen andie_nachgeborenen at yahoo.com
Mon Sep 8 11:10:17 PDT 2003


I do not understand the economics of this, but in Chicago, we have two big chains, Dominicks (owned by Safeway) and Jewel. Jewel is a third more expensive and somewhat better quality that Dominicks. I shop at a little Russian/Hispanic grocety in Skokie that is half the price of Dominicks for a week's shopping. Better quality, too.

jks

--- Wojtek Sokolowski <sokol at jhu.edu> wrote:
> Joanna:
> > ...except for the embarrassing fact that prices at
> the local bakery,
> butcher's, and produce
> > stores are the same or lower than supermarket
> prices, for much, much
> better quality goods.
> >
>
> This is certainly not true of Baltimore. Most
> "corner" stores sell
> inferior goods (last time I tried to buy canned
> cranberry sauce at a
> neighborhood I had a choice of cans expired by 2 or
> 3 years (sic!) at a
> convenience store prices (usually higher than
> supermarket).
>
> What does make a difference is region. Supermarket
> food in central PA
> is substantially lower than in Baltimore, and in
> addition central PA has
> Amish markets that sell good quality meat and
> produce at prices below
> those found in most supermarkets. But it is a
> supply-driven phenomenon.
> PA also has the largest number of family owned farms
> in the union.
>
> Unlike supermarkets, mega-stores, like Walmart or
> Home De(s)pot, do not
> compete with local producers, but with local
> distributors, and because
> of their size the mega-stores have lower per-unit
> transaction costs,
> which makes them more competitive price-wise than
> mom-and-pop hardware
> or clothing stores.
>
> However, their lower per-item cost does not
> necessarily translate into a
> lower total cots, as they often impose cost on the
> entire community e.g.
> job displacement, tax breaks, etc.
>
> Wojtek
>
>
> ___________________________________
>
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