by Bill Sardi, Lew Rockwell:
With the average household carrying $15,000 of debt on their credit cards and plunging retail store traffic (see below) it is becoming clear there is no economic recovery and whatever remains is being generated by expanded credit.
The crunch is coming in grocery store closures.
Stater Brothers, the largest grocery store chain in Southern California (37th largest in U.S.) with 167 stores, reports it made $10 million net profit on $968 million in sales in its most recent quarterly report. That is a 1% profit margin or only about $60,000 per store per quarter, ($240,000/year). That is profit of only about $657/day. That means just this store chain in teetering and is just 1% away from insolvency or having to borrow to have a future.
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