[gruez]

>How can grocery store have a 1% to 2% profit margin, when the price of the same item across grocery store chains can vary by 10-30% or more?

1. Individual price discrepancies of "10-30% or more" doesn't really matter. What does matter is overall markups.

2. The stores themselves might be upscale/higher tier, which also makes their stuff more expensive. I'm not talking about whole foods carrying organic products, I'm talking about stores that have better selection, full service butcher/deli, better cleaning, better interior design/decoration, or better location (richer neighborhood).