@BettyCash.
Most supermarkets operate on margins that make manufacturing look like good positive investment. They are the classic high volume/ low margin game, that have found profitability through cross selling badge engineered financial and other products (including your shopping information) to or from other organisations.
As an example - Tesco 2009 statement
group revenue 54.3 billion
group profit 3 billion
Huge numbers, but thats still a margin of less than 6%, especially as those are figures before tax.
Agreed that the level of increase has been 'slow' previously and persistant - the economic playing field has been changed thanks to the end of the era of cheap oil.
Most food production relies on oil for fertiliser, for distribution, for packaging, the list goes on.
This list is extended by the supermarkets desire to sell only one kind of apple and airfreight it from around the world, so that it is always in season.
Buy local, buy happy, enjoy variety, and live seasonally.
U