borusaFeb 24

Chocolate kept in anti-theft boxes as retailers warn it's being stolen to order

https://feddit.uk/post/44870768

Chocolate kept in anti-theft boxes as retailers warn it's being stolen to order - Feddit UK

> Chocolate bars are being locked in plastic boxes in some UK shops as retailers and police forces warn thieves are stealing them to order. > > Sainsbury’s said it had begun using “boxes on products which are regularly targeted”, with £2.60 bars of Cadbury Dairy Milk locked up in one London branch. > > Chocolate was more recently being “sold on by criminals and is now being targeted more frequently by prolific offenders,” according to the Association of Convenience Stores (ACS).

Show threadtetris11Feb 24
If you see someone stealing food, no you didn’t
Show threadMurrayLFeb 24

I think that principle is intended to apply to staples, when people in poverty are forced to steal food so as not to starve.

Stealing bars of Dairy Milk and then selling them on seems like a different thing.

Show threadtetris11Feb 24

It’s bringing the price of that product back to reasonable market levels and having a knock on effect on the pricing of that product in general.

Whilst I agree it’s different from stealing staple foods, it’s still something I’d happily turn a blind eye to as it’s an unofficial public service

(Yes, yes, I’m leaving)

Show threadFishFace

Sainsbury’s profit margins are about 3.8%. Any individual profit might have a larger margin than that, but the maximum downwards pressure on price you can exert overall is that much, which equates to 10p on a £2.75 bar of dairy milk. Is that what you mean by a public service?

Chocolate has experienced extremely high inflation lately because climate change is causing crop failures in countries where chocolate is grown.

Feb 24 at 2:39pmWeb
Show threadtetris11Feb 24

3.8% over what time period? If that’s still compounding from the 7.2% from last year isn’t that still an overall increase for the shareholders?

You make it sound like they’re so close to losing money

Preliminary Results for the 52 weeks ended 1 March 2025

Show threadFishFaceFeb 24

I’m calculating this from this article linked up the thread, dated April 2025, which says their profits were “just north” of £1 billion on £26.6 billion of revenue.

I’m not an accountant so I dunno if this is the exact right figure - further down the article it says their pre-tax profit was £761 million, which gives you a lower gross margin of 2.9%. I’m sure these different figures just reflect different ways of looking at the same numbers but the point is the same - Sainsbury’s is not, overall, gouging people on prices. Surely some products are overpriced, but others are loss leaders.

Sainsbury’s Leads FTSE 100 Higher As Profits Burst Through £1 Billion

Sales across its Sainsbury's stores and website increased 4.2% in financial 2025, driving underlying retail operating profit 7.2% higher.

Forbes
Show threadmoodyFeb 24

1 billion is still a lot of profit made on something that we require to live (not chocolate specifically, but food,) even if the margin is low.

And the companies making the products are also profiting.

Show threadFishFaceFeb 24
Looking at total profit instead of profit margin is pretty silly though. My food bill is not affected by how many people shop at the same supermarket as me, even though that increases the total profit of that supermarket. Should I be annoyed that my bill didn’t go down in that scenario?
Show threadtetris11Feb 24

I suppose I’m trying to tie the disconnect between their costs and their stock value. In my mind, these two metrics would be intimately tied together such that as costs increase, their stock value decreases as they try to keep prices level to compete.

I’m not seeing that trend, it really seems like they’re still rewarding their shareholders whilst passing the costs on to the consumer. I simply do not buy their poverty argument

Show threadFishFaceFeb 24

In a rational stock market (and there are numerous reasons why that might not apply) the value of a share reflects the expected future earnings from holding the share. The expected future earnings come in the form of dividends that the company distributes from the profit they make. So if a retailer’s costs increase, they put prices up to maintain the exact same profit, and sales do not fall, then you would not expect share price to change, because you would not expect any change to the future earnings from holding a share.

Of course, when prices change, it influences sales. But not always in the same way (because goods can be more or less elastic or - less so at supermarkets - luxury goods) and not always predictably; and since the expectation is about predicting behaviour, that means share price doesn’t even necessarily reflect what actually happens.