“We have taken into account the feedback from our customers,” stated the largest food retailer in Canada. Loblaws has decided to reintroduce its 50% off stickers following public outrage over the reduction in discounts.
In a surprising turn of events, Loblaw Companies Ltd. is backtracking on its decision to reduce discounts on soon-to-expire grocery items.
Following feedback from customers and colleagues, the company is returning to its previous practice of marking down last-day sale items by 30 to 50 percent, with the 50 percent stickers set to make a comeback in the coming weeks.
The initial move by Canada’s largest grocer to uniformly discount all last-day sale items by 30 percent sparked public backlash.
NDP MP Alistair MacGregor even called for an investigation into potential anti-competitive practices, as Loblaw mentioned aligning its discounts with competitors. However, industry experts and the Retail Council of Canada noted that price-matching is a standard practice in the sector.
This shift aimed to align Loblaw with competitors, reflecting the increasing demand for discounted food items.
According to retail analyst Lisa Hutcheson, the decision was strategic, as grocers found more flexibility to sell these items at a smaller discount due to rising demand.
The move highlighted the ongoing scrutiny faced by major grocers in Canada, including Metro, amid concerns over rising food prices.
Despite a slight decrease in inflation, grocery prices remained elevated, exceeding the Bank of Canada’s target rate. Shoppers, grappling with the impact of increased living costs, have turned to discount grocery stores like Loblaw’s No Frills.
The financial landscape, influenced by inflation and economic changes, continues to shape consumer behavior. As Canadians seek ways to save money, the dynamic between major grocers and discount banners evolves to meet growing demand.
The grocers’ strategic expansions of their discount footprints underscore the changing landscape of consumer preferences and financial considerations.