Everything in groceries has bad margins. Grocery shops are not making the money, food conglomerates are making the money if you look at earnings.

Small grocery stores are going bankrupt, larger chains now all are becoming food conglomerates who also own the point of sale - so called "private label" is noted as a huge threat in the shareholder reports of traditionally large food companies - go to a whole foods, aside from a few high profile products like CocaCola its all in-house brand products