Loblaws Backtracks on 50% Discount Change
Loblaws has decided to reinstate the 50% discounts on products nearing their expiration date following widespread criticism. The company announced this change through a statement to Global News, highlighting their response to the feedback from customers and colleagues about the initial decision to stop these discounts.
The statement from Loblaw’s PR department emphasized their return to the previous 50% markdown policy for items on their last day of sale, noting that customers should see the reappearance of these discounts within a few weeks.
This decision came after Loblaw, Canada’s largest grocery retailer, faced significant public dissatisfaction for uniformly lowering discounts on these items, a move they initially described as aiming for greater predictability and consistency.
The initial decision raised numerous questions and concerns. The Canadian Association of Retired Persons (CARP) expressed disappointment, and NDP MP Alistair MacGregor urged the Competition Bureau to investigate potential anti-competitive practices by Loblaw. MacGregor highlighted these concerns in a letter to the Competition Bureau, as reported by Global News.
Despite the controversy, industry experts like the Retail Council of Canada and competition specialist Michael Osborne indicated that price-matching and discount-matching are common in the retail sector. Metro also informed The Canadian Press that it has been reducing prices on items nearing their best-before dates by up to 30% for over two decades.
The Competition Bureau, while acknowledging awareness of Loblaw’s policy change, stated that it could not comment further. The Bureau emphasized the confidentiality of its investigations under the Competition Act, including whether an investigation is underway. They confirmed receiving MacGregor’s letter but declined to elaborate.
Amid ongoing scrutiny of Canadian grocers due to persistent food inflation, with prices having increased by 4.7% year-over-year as of November, before stabilizing in December, there is heightened attention on pricing practices. Innovation Minister François-Philippe Champagne has urged grocers to develop plans to stabilize prices. Regarding the allegations of “discount-fixing” linked to Loblaw’s policy change, the minister has deferred to the Competition Bureau for comment.
Google Play and the Google Play logo are trademarks of Google LLC.
