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Old 01-24-2018, 07:28 AM
 
Location: Gray, TN
2,158 posts, read 3,953,791 times
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There are some very knowledgeable grocery experts in here. Do any of you see changes occurring in the grocery procurement system because of IRC § 199A(a)(2) of the new tax law? Also, might we see lower grocery prices? And finally, do you expect to see a technical correction to allow similar private operators similar tax benefits?

For example:
A provision in the new tax law gives growers a better deal at tax time if they sell their agricultural products to coops rather than other types of entities. Basically, if farmers sell to coops, they get a 20% deduction on gross sales. If they sell to a non-coop entity, they only get a 20% deduction on net income (sales less expenses). So for a farmer with $100k in sales and $80k in expenses, if you sell to coop you get a $20k deduction; if you sell to Cargill or direct to the grocer, you get a $4k deduction.
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Old 01-24-2018, 08:45 AM
 
Location: Tennessee
28,317 posts, read 21,240,855 times
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Quote:
Originally Posted by rccrain View Post
There are some very knowledgeable grocery experts in here. Do any of you see changes occurring in the grocery procurement system because of IRC § 199A(a)(2) of the new tax law? Also, might we see lower grocery prices? And finally, do you expect to see a technical correction to allow similar private operators similar tax benefits?

For example:
A provision in the new tax law gives growers a better deal at tax time if they sell their agricultural products to coops rather than other types of entities. Basically, if farmers sell to coops, they get a 20% deduction on gross sales. If they sell to a non-coop entity, they only get a 20% deduction on net income (sales less expenses). So for a farmer with $100k in sales and $80k in expenses, if you sell to coop you get a $20k deduction; if you sell to Cargill or direct to the grocer, you get a $4k deduction.
I'm not sure I understand the scenario.

In theory, if they could sell to the coop for less, they could charge less and ideally that filters down to the consumer, but the coop has to be able to "get it out" in a cost-effective manner to consumers. If the coop has additional overhead compared to Cargill or the grocer, it may be a wash in the end.

I've been as confused with the high grocery prices as anyone. I went to Knoxville over the weekend, and went to the Bearden Kroger Marketplace, and kept the receipt. Most everything in Knoxville was cheaper than Johnson City, and the selection is obviously less here.

You'd think more competition would lower prices some, but that doesn't seem to be the case and Johnson City is the only one of the Tri-Cities with a reasonable selection.
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Old 01-24-2018, 12:08 PM
 
Location: Johnson City, TN
667 posts, read 822,197 times
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Quote:
Originally Posted by Serious Conversation View Post
I'm not sure I understand the scenario.

In theory, if they could sell to the coop for less, they could charge less and ideally that filters down to the consumer, but the coop has to be able to "get it out" in a cost-effective manner to consumers. If the coop has additional overhead compared to Cargill or the grocer, it may be a wash in the end.

I've been as confused with the high grocery prices as anyone. I went to Knoxville over the weekend, and went to the Bearden Kroger Marketplace, and kept the receipt. Most everything in Knoxville was cheaper than Johnson City, and the selection is obviously less here.

You'd think more competition would lower prices some, but that doesn't seem to be the case and Johnson City is the only one of the Tri-Cities with a reasonable selection.
I'd be interested in seeing the comparison between Kroger in Knoxville and JC. I do know the Knoxville Kroger stores are part of the company's Nashville division whereas the Tri-Cities stores are part of the Mid-Atlantic division (based in Roanoke). Therefore you're looking at different distribution networks, labor agreements (Kroger is a union company), etc. that possibly have an effect on price. Prices in the Tri-Cities probably are the same as you would find in the Roanoke metro.

I have noticed that since Aldi opened, Kroger has reduced their prices on quite a few items that are comparable at both stores to where many things are cheaper at Kroger. Aldi seems to have had a greater effect than anything.
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Old 01-24-2018, 01:13 PM
 
Location: Tennessee
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Quote:
Originally Posted by Rangerred View Post
I'd be interested in seeing the comparison between Kroger in Knoxville and JC. I do know the Knoxville Kroger stores are part of the company's Nashville division whereas the Tri-Cities stores are part of the Mid-Atlantic division (based in Roanoke). Therefore you're looking at different distribution networks, labor agreements (Kroger is a union company), etc. that possibly have an effect on price. Prices in the Tri-Cities probably are the same as you would find in the Roanoke metro.

I have noticed that since Aldi opened, Kroger has reduced their prices on quite a few items that are comparable at both stores to where many things are cheaper at Kroger. Aldi seems to have had a greater effect than anything.
I probably do two-thirds of my grocery shopping (excluding Sam's which is probably the bulk of my food) at Kroger now. That's not really a compliment to the local Kroger - it's just the best of the available options. Food City is expensive, doesn't have much in the way of natural/organic (though that is slowly changing)

A nice Publix that is better than the existing Krogers will get the majority of my non-Sam's business. I'd love to see more "take and eat" type foods - premade items that just need to be cooked. That's not popular here.
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Old 01-25-2018, 06:44 AM
 
Location: Gate City, VA
294 posts, read 262,945 times
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I never understood the hype in Food City. They are expensive, their store brand is awful, and lately their meat is terrible. It's a very average store and an average store with above average prices and a terrible private label. I very rarely shop at Food City anymore and the other day I happened too and I just wasn't that happy. For one I went out paying more than I expected and two I wanted hamburger meat and yeah it looked awful and very inconsistent.
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Old 01-27-2018, 02:03 PM
 
Location: Nashville, TN
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Quote:
Originally Posted by sprintuser2014 View Post
I never understood the hype in Food City. They are expensive, their store brand is awful, and lately their meat is terrible. It's a very average store and an average store with above average prices and a terrible private label. I very rarely shop at Food City anymore and the other day I happened too and I just wasn't that happy. For one I went out paying more than I expected and two I wanted hamburger meat and yeah it looked awful and very inconsistent.
I always thought Food City prices were high too when I lived in Knoxville. I stuck with Kroger there.
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Old 01-27-2018, 08:37 PM
 
Location: Gate City, VA
294 posts, read 262,945 times
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Quote:
Originally Posted by MetropolitanTN View Post
I always thought Food City prices were high too when I lived in Knoxville. I stuck with Kroger there.
They can have some decent sale prices but their regular prices are way too high and often they push Food Club products on you, which as I said their store brand is awful and I pretty much won't touch it. I had been getting some good meat at Food City at least but lately their meat at both of the locations close to me has just looked of very poor and inconsistent quality. I've gotten some terrible food from their deli as well. So the more I shop at Food City the less I like it, yet people seem to be wild about it here and it's just so average and overpriced. I don't understand it and I never will.
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Old 01-28-2018, 07:02 AM
 
745 posts, read 2,019,490 times
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Quote:
Originally Posted by Carolina Knight View Post
The former Food City westward including Yamato Japanese Steakhouse will be demolished. I have not heard or read where Yamato Japanese Steakhouse will relocate.
This is most worrisome. I really loved Yamato and so did many poor college students it seemed who wanted a lot of really good food at a good price. Each order was literally enough for 2 days and they would give extra shrimp sauce for far longer. I hope it re-opens but fear it won't. I know the owner was talking several months ago about business being slow and trying to hold on until Publix opened. With Ming's, Miso, Moto, etc I fear they're just gone. But nothing was quite the same as Yamato.
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Old 01-28-2018, 07:11 AM
 
745 posts, read 2,019,490 times
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Quote:
Originally Posted by Rangerred View Post
With the opening of Publix, I can see business being pulled from both Food City and Kroger and maybe Ingles somewhat. Kroger, though, has a very loyal customer base and a reputation for great store brands along with their Simple Truth line of natural/organic products putting them in a good position to stave off additional competition. Food City probably has more to worry about. One thing Publix is known for is having great prepared food and to-go meals and this is an area that Food City has really invested in recently. Not to mention Food City's (and Ingles') relatively high prices and poor quality store brands. Stores like Aldi, The Fresh Market, and Earth Fare are more niche stores that I don't feel will be directly competing with Publix.
I'm officially super-jealous of JC with the grocery options now. This is great news for those that hit all the stores with sales papers in hand. Of course it will hurt everybody. I knew so many people in JC who moved from FL or GA who I'm sure will immediately switch despite the traditional traffic problems at that intersection. I certainly don't see Walmart, Kroger, Food City, or Aldi going anywhere though. I would bet these companies would rather lose money in a store and keep market share rather than closing and sending more customers to Publix. Fresh Market, Earthfare, and possibly even Ingles (J-Bo and Boone's Creek) or Priceless (S. Roan) I'm more uncertain about if more people change their shopping location to the St of Franklin/Market St area.

Quote:
Originally Posted by sprintuser2014 View Post
So the more I shop at Food City the less I like it, yet people seem to be wild about it here and it's just so average and overpriced. I don't understand it and I never will.
I was definitely wild about Food City when we lived there. In fact since moving it's probably one of our most missed stores, along with Pal's, Yamato's, and Ridgewood. We do most of our shopping at Kroger now which really strikes me as Walmart lite with big-box appeal and average quality products, but it's all we got. To each their own I suppose.

Many people I know loved it because of local pride. After White's went out of business it's really the only local retailer left. Food Country exists but isn't really an option for most. Food City also carries a number of 'legacy' brands that people in the area used for years and can't find anywhere else. They've really opened the doors for other local suppliers, Lincoln Road coffee, Yee-Haw brewing, Tri-City Beverage, BKW seasonings, and produce is another big one from local farms. Combined with the catering to local tastes such as the country ham, there's a lot of people that are going to Food City because of things they can't get anywhere else. They also do a lot of community projects for schools, food banks, pets, etc. So many pre-pharm and pharmacy students really liked them as well because they're one of the few retail places that will help train students. In fact I know a few that applied to Food City but left the area because there was no opening locally. And personally, we had no issues with food club which made the shopping trip less expensive for us. And the gas points could be used in a lot of more rural towns with a store outside of JC, K-sport, or Bristol proper. But again to each his own, I just felt obligated to give the up-sides for us as a couple have mentioned the down sides for them. For some of the reasons people choose Food City, I think they'll do as decent a job as others retaining customers, but of course some will switch and most will probably go visit the new store at least once or twice.

Last edited by Trevor92; 01-28-2018 at 07:32 AM..
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Old 01-28-2018, 01:17 PM
 
Location: Tennessee
28,317 posts, read 21,240,855 times
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I had nothing going on today and went to the Greeneville Publix. I was very impressed. They do a lot of premade food that is already seasoned and such, and all you have to do is cook it. Kroger did this when I lived in Indy and FC doesn’t. That’s a huge plus to me.

Everything seemed higher quality than food city. Prices were a toss up between FC with a card, more than Kroger with a card, and better than no cards. It just seemed so fresh and nice.

Eager to have them here.
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