Runaway inflation has thrust the big grocers into a harsh public spotlight this year, as consumer advocates, politicians and economists have questioned whether the chains are exploiting the situation to pad their profits. A parliamentary inquiry is set to investigate whether corporate greed is driving up prices, while the federal antitrust watchdog is studying whether a lack of competition in the industry made matters worse.
On the same day, Montreal-based Metro Inc. — the third-largest Canadian grocery chain, which includes IGA, Food Basics and the Jean Coutu pharmacies —to $219.4 million during the company’s fourth quarter, when adjusted to account for an impairment charge from Jean Coutu’s decision to pull out of the Air Miles loyalty program. On a non-adjusted basis, Metro’s quarterly net earnings were $168.7 million, a 13 per cent decrease year over year.
Loblaw has insisted that the margin growth isn’t coming from the food aisles of its stores, but from the fact that sales are increasing in categories that have higher margins to begin with, such as beauty. “If we really want to get to the bottom of it, there needs to be some objective, third-party analysis,” Robin Shaban, a former officer at the Competition Bureau and co-founder of a think-tank called the Canadian Anti-Monopoly Project,That type of analysis could start soon, as the industry faces a pair of federal inquiries.
During Loblaw’s conference call on Wednesday, Dufresne said the company has been inundated with requests from food suppliers looking to increase their wholesale costs at a level “more significant than anything I’ve seen in my career.”
Really!!!!!!!!!!!!!!!!!! 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
Profits increase when prices increase. A 23% increase in price leads to a 23% increase in profit. No one decreases margin when pricing increases. That’s the fast lane to bankruptcy.
Just a page out of Trudeaus excuse book. Doesn’t mean it’s true.
So explain why us farmers are getting paid the same price from loblaws but their prices are going up 3x
Sorry Loblaws et al. Canadians have seen some of ur items as much as double in price well in excess of the rate of inflation and those Canadians will be calling bullshit.
🙄