Originally Posted by
elZorro
Maybe FP, I think the wording of his speech was carefully calculated. It had resonance, that's for sure. In actual fact Progressive probably asked for credit notes to be applied against their current purchases. I've just had a look at their website. The biggest employer in NZ (maybe not of FTEs). Very organised store handling of incoming goods with barcodes and transport roller belts. Lots of processes and no doubt a document to cover everything. While it might look deceptively simple when you're in the supermarket buying the weekly groceries, all of those goods that fill the shelves were transported there from some far-flung area. If we ran out of diesel over here, those shops would be empty fairly quickly.
I suspect supermarkets usually make good margins on the greens area, butchery/deli as well, but the non-perishable standard lines might be harder. Our hort farmers don't make a lot of profit unless they are super organised, so suppliers are probably screwed down across the board. Those who supply on a large scale, the owners of those businesses, seem to do OK in the end, and won't want to rock the boat. But this is the very top part of a pyramid, and virtually all of their employees might get fairly average pay to allow for the low supplier margins.
Maybe the consumer wins out of all this in the end? The race to the bottom.