Loblaw facing criticism after announcing No Name price freeze
At home a lot of reaction to the announcement yesterday from lob laws at its freezing prices on its no name line for three months the reaction ranges some call it a PR stunt others welcome the move as a big price break Scott Peterson is gauging all of it for us number one what are we hearing overall today uh we’re hearing a reaction first.
From the lobots really setting the lead on this and clearly you get a sense that grocery stores are under pressure with Metro coming out late yesterday with their own statements saying that they too want to freeze prices through the end of the year this is a statement coming out late yesterday from Metro saying it is an industry practice to.
Have a price Freeze from November 1st to February 5th for all private labels and National brand grocery products and this will be the case again this year in all of Metro banners and that includes Metro and Food Basics Etc now CBC took that statement to lobla themselves saying that well is this the case is this an industry standard at this time of year.
And this is the response by Loblaw saying that this is definitely law not an industry standard saying that there’s no freezing prices is absolutely not the industry practice we have implemented this as one of the many ways to help our customers combat inflationary pressures when shopping for groceries so you do get the sense that these this back and.
Forth is these grocery stores Under Pressure we’ve got food inflation in the country nearing 11 that’s the fastest it’s been since 1981. uh the Loblaw chairman Galen Weston says that the prices are madly out of control and as you mentioned a lot of people are saying is this a PR stunt uh is is the are these companies under pressure are they.
Passing along simply passing along prices from their suppliers here’s one Industries expert you were talking with him earlier Heather Sylvan from Dalhousie and he says that this idea of a coordinated industry practice is of itself questionable I’ve been following the grocery industry for 25 years so I’m not aware of a.
Standard and Metro didn’t talk to did talk about a practice a so-called practice now if there is a practice to limit uh prices uh price increases or anything at all it’s illegal in Canada and and I hope that Ottawa will look into this matter as they investigate food inflation and that Heather is where things get.
Political and Jack meeting of NDP has already indicated that he wants to look into this even further and Sylveon charlebois saying he’ll be testifying before any proceedings to come what is the view from Canadians having to pray pay more as they uh go through the checkout counter yeah for obvious uh reaction they’re not happy about it this.
Is making tough things very tough for Canadian families making ends meet buying groceries to feed your family here’s a little bit more of a different sampling of what we’re hearing at CBC mostly like the no-name stuff that I find myself buying a lot now because it seems a little bit cheaper they can definitely find more long-term Solutions.
Rather than like a Band-Aid solution of like a PR marketing stunt of like okay we’re not going to inflate our prices for three months you know I used to be able to come in for like 20 30 bucks get something decent come home make a decent meal now it’s like 50 60 plus that’s how much I’m expecting every time I come here.
And as we’ve been talking as well this morning we’ve got inflation numbers coming out from statistics Canada tomorrow morning Heather and we’re going to find at the very latest about food prices and the inflationary effects of them tomorrow morning expected to be higher for food than it is for the overall inflation rate so yes we’ll look.
Forward to that release from stats Canon coverage of that to come thank you Scott