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It seems some cities in S. California have determined that anyone working at a grocery chain or pharmacy with over 300 employees are "HEROS", while, I guess, those employees doing the same work at a grocery store with 295 employees are unheroic, cowards and yellow-bellies.

But "Heros" are so special they're mandated to get an increase in pay of $4/hr. How noble! What sacrifice! I mean...monuments should be erected in these hero's honor!

In response, grocery chain Kroger said it closed down two California stores Saturday after the Long Beach City Council approved a COVID-19-related “hero pay” ordinance.

Last month, Kroger also announced it would close down three stores—two Ralphs and one Food 4 Less—in nearby Los Angeles, which passed its own $5-per-hour “hero pay” boost to workers amid the pandemic. “Hero pay” mandates have also been passed in several other Southern California cities, including Coachella, Montebello, and Irvine.

What this boils down to is discrimination towards larger employers. To maintain their profit level for their shareholders, Kroger would have to raise prices on food items, providing their smaller competitors not subject to the 'Hero Pay' bonuses, an artificial price advantage. In effect, the local government is putting their thumb on the scale for the benefit of smaller employers. In the end, locals will simply end up paying more for groceries and several thousand workers will go on the unemployment rolls. Did the local knot-head political leaders think of this. Nope! Instead....and I'm not making this up....last week two Los Angeles City Council members introduced a motion to investigate Kroger’s decision to close several of its stores in the city. Investigate them??? For what???? The decision to close a store??? So, do these city council members, who have probably never held a real job, think they can get a court to demand they open their stores back up??? This city council must have members with the intellect of their neighbor, Mad Maxine Waters and perhaps a familial relationship to Rep. Hank Johnson (D-Ga.), who asked Adm Robert Willard, head of the U.S. Pacific fleet, and I'm not making this up either,

"My fear is that the whole island will become so overly populated that it will tip over and capsize,"

Collectively, these are some kind of great analytical minds. Regular intellectual giants. This kind of intellectual capacity, if it had been invited in years past onto the PBS show Firing Line, would have ground William F. Buckley Jr into intellectual dust!

BruceM
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Any mention of our GIs, exposed to both bullets and the pandemic, getting a $5/hr hero pay?

RayB
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We've been through this before, a couple of months back

Kroger decision to keep a store open is based on margin and traffic. Obviously fixed and variable overhead of labor figure into these two, but not as much as you would think. If it were, Kroger would be totally exiting CA. Traffic comes down to location and margin is dependent on what the the market will stand. You may have noticed that supermarket chains will vary product offerings base on location, even within a store (Check out beans in the regular section vs the same beans with a Spanish label in the "International" aisle.

The end result is that stores in in lower income neighborhoods tend to have less traffic and margin, so are most likely to close. They need about the same amount of staff to operate as other stores so this is not a large contributing factor.

As expected, Kroger's posted record profits due to shopping patterns during COVID. People cooked at home rather than eating out. Blaming closings on hazard pay is just as opportunistic as outraged politicians, strutting their stuff in mock disgust.
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We've been through this before, a couple of months back

And..... you may well have to go through it again.... and again.
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as expected, Kroger's posted record profits due to shopping patterns during COVID. People cooked at home rather than eating out. Blaming closings on hazard pay is just as opportunistic as outraged politicians, strutting their stuff in mock disgust.

All food retailers for 2020, had positive cash flows, for reasons you note. What you ignore to your political convenience, is inventory shrinkage. Any for profit companies will not abandon profitable outlets with 'record profits' for some political reason....correct?? But with minority-centric businesses getting the message that looting and theft are somehow racially justified, would a profit oriented company participate in this? Would they "open" their doors to wholesale theft of their inventory to prove their woke conviction??

Those retailers, like Target, who are willing to sacrifice the revenues of 1% of their revenue sources to support their woke position, this strategy may work. But what position will their BOD take when 10% of their retail revenue is at risk from destruction and theft?

Think about that.

BruceM
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All food retailers for 2020, had positive cash flows, for reasons you note. What you ignore to your political convenience, is inventory shrinkage. Any for profit companies will not abandon profitable outlets with 'record profits' for some political reason....correct?? But with minority-centric businesses getting the message that looting and theft are somehow racially justified, would a profit oriented company participate in this? Would they "open" their doors to wholesale theft of their inventory to prove their woke conviction??


Nice theory, right up there with election fraud.
Shrinkage happens across the board. The two Ralph's stores, probably had their share. But it was a significant concern for management who pinned the blame squarely on hazard pay.
Riots. Sorry none in the area. Every time I see looting footage, it features kids running of with big screen TV's and the like. Seems to be no rush on brussels sprouts or Evian Water.

But numbers add up so to give you an some idea of size: If looters were to ransack every retail store in CA and take everything, all of it!. The loss to theft would be about the same as Bernie Madoff chalked up for his investors. Ever wonder where Bernie's money went?
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