Call Me Dave has recently made the claim that supermarkets are subsidising alcohol sales at the expense of wholesome food by selling alcohol cheaply, or even at a loss.
- Supermarkets don’t make profits by selling any significant proportion of goods at a loss
- Most discounts are in any case funded by manufacturers rather than retailers
- Supermarkets will only make money by subsidising one part of a customer’s basket at the expense of other parts. They won’t make money by subsidising some customers at the expense of others
- Supermarkets are in general cheaper than other retailers, even those who don’t sell alcohol, across the whole range of goods
And I love this comment from Legiron:
It’s simple. If any shop is making a consistent loss on a product line, they stop selling it. That’s why the beer selection changes – if it’s not popular, it doesn’t get re-stocked. No shop anywhere is going to put up the price of their standard fare (McEwan’s Export in these parts) to subsidise the loss-making craft beer known as Jock McSquirty’s Bowel Purger.To be honest, all this really proves is how disconnected Dave is from the ordinary voter.