Loblaw customers who previously relied on 50-percent-off deals to stretch their grocery budgets will now have to settle for a smaller discount. Loblaw Companies Ltd. has decided to change its policy on expiring items and will no longer offer 50 percent discounts on perishable foods. As of this week, the maximum discount shoppers can expect on meat, fruit, and vegetables nearing their expiry date is 30 percent.
Although the grocery chain, which includes Loblaws, No Frills, Valu-Mart, Your Independent Grocer, and Zehrs, did not publicly announce the new policy, it confirmed the pricing change to Dalhousie University’s Agri-Food Analytics Lab. In an email response to the lab’s inquiries, Loblaw reportedly stated that they are moving towards a more consistent and predictable pricing strategy to align themselves with competitors. The company also mentioned that it will continue to offer a variety of discounts through in-store promotions and through the Flashfood app, which offers “deep discounts” on grocery items nearing expiration.
Lab director Dr. Sylvain Charlebois expressed in a column for Sun Media that the new policy is being implemented in all stores across the country. He added that the company may not have taken public perception into account when formulating its new pricing strategy. Dr. Charlebois noted that the pricing change is unlikely to lead to more food waste because items nearing expiry will be redirected to other sales channels. As for food prices, the Canada Food Price Report released by the lab last month predicts an increase in the average cost of groceries per family of four.
The report also found that most families plan to cut back on food spending by actively looking for promotions, using more coupons, using loyalty programs more often, and shopping at different stores to get better deals. Many Canadians also plan to cut back on particular food products, with snacks and convenience foods being the number one choice for cutbacks. Meat, alcohol, fish, seafood, fresh produce, and dairy products are also on the list of items Canadians plan to buy less of due to rising food prices.