Except we're talking about Covid. When all input costs were skyrocketing (according to the grocers themselves). Accordingly, there were no magical cost-saying measures or new efficiencies unleashed.
That tracks with their financial statements (no new efficiencies).
So, the only way to increase profit margin when input costs are rising is to raise prices more than your costs are rising.
As an aside... Loblaw's margin is upwards of 3.7% not 1%. Before Covid it was around 2% (give or take) for over a half century. The grocery industry may have low margins but they were remarkably stable. Until Covid.
That tracks with their financial statements (no new efficiencies).
So, the only way to increase profit margin when input costs are rising is to raise prices more than your costs are rising.
As an aside... Loblaw's margin is upwards of 3.7% not 1%. Before Covid it was around 2% (give or take) for over a half century. The grocery industry may have low margins but they were remarkably stable. Until Covid.