Loblaw Companies Ltd. had decided to discontinue its 50 percent discount on food products nearing their best-before dates. One of its various grocery stores, including Loblaws, No Frills, Valu-Mart, Your Independent Grocer, and Zehrs, introduced a new policy to cap the discount at 30 percent. The move was intended to align with practices of its market competitors and create a more uniform and predictable pricing strategy.
This change prompted criticism from Canadian politicians and demands for investigation by Canada’s Competition Bureau. However, Loblaw Companies Ltd. has reversed its decision and reinstated the 50 percent discount. A company statement to CBC News on Jan. 19 confirmed a reversion to its previous policy. “We’ve listened to the feedback from our customers and colleagues and are reverting [where it existed before] to the 50 percent off discounts,” said the company.
The cost of groceries has had a major impact on Canadians’ wallets over the past two years due to food inflation. Prices are expected to continue rising this year, although not as much as in 2023. The 2024 Food Price Report from the Agri-Food Analytics Lab predicts that the price of groceries will increase by an average of around $701 per family of four this year. Families in Canada have also indicated plans to change their food shopping habits in light of increased food prices.
According to a report, many Canadians plan to focus on promotional offers, increase online food purchases, and eat out less often or cut back on dining out altogether. Over 80 percent of Canadians anticipate further increases in food prices, particularly in meat, produce, and dairy. Despite assurances from the Canadian government, the cost of groceries has remained unstable.