Why grocery stores sell magazines

Why grocery stores sell magazines: According to a new study from the MPA, magazines are a profitable supermarket product category with high gross margin performance, compared with overall supermarket performance.


Magazine gross margin performance is above the gross margin performance level of total store. Once trade allowances are included, a representative adjusted gross margin level for magazines, compared with all supermarket categories, is an estimated 33.6 percent vs. 27.6 percent.

Reminds me of my favorite movie scene of all time, when Steve Martin (Navin Johnson) has an epiphany in The Jerk and says to his boss, “Oh, I get it. It’s a profit deal.”

  • lcreekmo

    You can pretty much figure if Wal-Mart sells it, there’s profit in it.

    The difference between Wal-Mart and even major national grocery chains, of course, is marketplace power. Wal-Mart decides what magazines are sold [witness the earlier rexblog discussions about this] and grocery stores are just trying to make a buck. In general, groceries are not able to squeeze the efficiences out of their supply chains the way that Wal-Mart can [they just aren’t the 800-lb. gorilla, even the big ones], so every potential profit center like magazines, deli, prepared food, etc. is critical.

  • lcreekmo

    Forgot to add….Wal-Mart doesn’t have any union issues. Whatever your stance on that, it directly impacts their bottom line, and most grocery stores do have unionized employees. Another $$$ difference.

  • Hudge

    I noticed the local Kroger has removed most of the “modesty panels” from in front of Glanour and other racy rags. Guess they feel sex does sell.

  • lcreekmo

    Kroger used to have those?? That is a hoot.