Loblaws needs to be called out; Shoppers say that Loblaws is price-gouging consumers to achieve higher profits

BY SIMONE J. SMITH

• No Name Shredded Mozzarella Cheese, $11.99.
• Asparagus priced at $5.19.
• No Name Naturally Imperfect Mixed Sweet Peppers (2.5 Bag 1.113kg) priced at $6.99.
• Farmer’s Market Greenhouse Peppers priced three for $6.49.

Hmmmm!

I received an email from Haruun Ali, President of Edmonton’s Future. He reached out to me disturbed about some of the things that he has been seeing in the marketplace, especially with one store in particular; Loblaws. He is pushing for legislative changes to the Competition Act, and for legislation to prevent the further monopolization of Canadian grocery stores. He recently launched a parliamentary petition (e-4244) calling upon parliament to take action on Loblaw Co and Galen Weston Jr’s pandemic profiteering and greed.

I decided to visit a Loblaws for myself to take a look at prices in comparison to other major supermarkets. After about 10 minutes in Loblaws I had to agree, the prices there definitely had me considering whether I wanted to spend my money there. I am a little bit of a grocery snob; nothing is better than walking through a grocery store, seeing the fresh vegetables, colourful, full…

I realize that in order to get that quality, I am going to have to pay for it, but when is too much, too much? Does Loblaws have a better selection of items? Some stuff! Does Loblaws have more variety? NO! Does Loblaws have ANY other feature not offered in other stores? NO? So, why are Loblaws shoppers paying noticeably higher prices? Let’s take a look at what is really going on here.

In 2017, Loblaw Co admitted to fixing the price of bread for over a decade. The bread price fixing scheme cost Canadians an estimated $5 billion over 16 years. They only offered Canadians a $25 gift card for this and the competition bureau has offered them immunity in exchange for their cooperation with the investigation.

In 2022, Loblaws first-quarter profit was up to nearly 40% compared to the same 2021 period, gaining most of its growth from drugstore retailers like Shoppers Drug Mart and Pharmaprix through the sale of over-the-counter medications.

In the 3rd quarter of 2022, Loblaw Co reported its profits had surged 30%, and specifically cited high margin items like beauty products and cold medication.

Let’s be frank, we have all seen the rising cost of groceries at Canadian grocery stores and especially at Galen Weston Jr’ owned stores. Over the years, Loblaw Companies have cost Canadians billions as a result of their pandemic profiteering. Some shoppers would say that Loblaws is price-gouging consumers to achieve higher profits. They are trying to use inflation as a way to justify their pricing.

According to Statistics Canada data, it shows that food retailers have earned about an extra $5 billion per year in net income since the beginning of the COVID-19 pandemic, which is more than twice what they earned in 2019.

Unfortunately, this is happening and Galen Weston Jr. is generating wealth at the expense of Canadians. In 2021, Galen was paid a salary of $730,456, a $2,170,000 bonus and stocks valued at $2,470,000 million for a total compensation package of $5,370,456. This means that Galen Weston Jr. made nearly 100x what the average Canadian made and nearly 184x the average store clerk.

Loblaws PR has attempted to gaslight Canadians who point the finger at Galen Weston Jr’s excessive corporate profits. Their executives state that they price their grocery items based on competition rather than inflation, and that they are also suffering from the same supply-chain challenges and cost increases that other stores do.

Parliament has failed to take legislative steps to prevent the exploitation of folks at the checkout line. A basket of groceries shouldn’t cost more than $100 and 5 chicken breasts certainly shouldn’t cost $37.

Galen Weston Jr and Loblaw Co own a grocery store within 10km of 90% of most Canadians. This makes it difficult to boycott them considering they own a significant portion of grocery stores in Canada under several brands.

These high grocery store prices are driving more Canadians to visit food banks. Food is an essential that every Canadian should be able to access in a dignified manner. I always suggest shopping local, and supporting some of the smaller grocery stores in your area. I have found that prices are a lot more reasonable, and the quality is sometimes even better.

Haruun Ali is asking for you to join him in calling upon parliament to take legislative action to not just investigate Loblaw Co, but to introduce legislation that will prevent the further monopolization of essential goods like groceries, telecommunications and more.