Grocery chain CEOs deny profits behind rising food prices: Canada
https://www.youtube.com/watch?v=On-qgSZ3XZs
CBC News: The National shows the story.
The CEOs of Canada’s biggest grocery chains faced pointed questions on Parliament Hill about soaring profits and food inflation, but all denied that corporate earnings were behind rising food prices.
Canada: Grocery chain CEOs deny profits behind rising food prices
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Re: Canada: Grocery chain CEOs deny profits behind rising food prices
I found some reports that show the profits of some of the major grocery chains in Canada for 2022. According to them, Loblaw reported a net income of $1.3 billion for 2022, up from $1.1 billion in 2021. Empire, which owns Sobeys and Safeway, reported a net income of $741 million for 2022, up from $586 million in 2021. Metro said a net income of $798 million for 2022, up from $757 million in 2021. These profits were higher than their five-year average
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
Yes, these profits definitely seem higher than usual. In related news, Empire and Sobeys sure had problems with a cyberattack.cyntiaf wrote: ↑Wed Mar 15, 2023 4:50 am I found some reports that show the profits of some of the major grocery chains in Canada for 2022. According to them, Loblaw reported a net income of $1.3 billion for 2022, up from $1.1 billion in 2021. Empire, which owns Sobeys and Safeway, reported a net income of $741 million for 2022, up from $586 million in 2021. Metro said a net income of $798 million for 2022, up from $757 million in 2021. These profits were higher than their five-year average
Interesting news here:
Sobeys parent company says cyberattack will cost them $32 million
https://www.thestar.com/business/2023/0 ... rofit.html
Empire reports $125.7M net earnings as it rebounds from Sobeys cyberattack
https://www.cp24.com/news/empire-report ... -1.6316435
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
Loblaw says suppliers behind higher grocery prices as it reports $508-million profit jump
JULY 26, 2023
Read more here:
https://www.theglobeandmail.com/busines ... july-2023/
Stubbornly high food prices should not be continuing to rise at their current pace, executives from Canada’s largest grocery retailer say – making the argument that food manufacturers are to blame, and not store owners.
Suppliers have raised the prices they charge to grocery giant Loblaw Cos. Ltd. ( L-T -0.64% decrease ) by more than $1-billion so far this year, chief financial officer Richard Dufresne told analysts on a conference call Wednesday to discuss the company’s second-quarter results.
“This is double what we would expect normally,” Mr. Dufresne said. “We have received double-digit increases from the same suppliers who gave us double-digit increases last year. That’s why you see products that are noticeably more expensive than they were just a couple of years ago.”
Mr. Dufresne added that many of these cost increases are not justifiable, considering that prices for commodities that go into those products and their packaging are coming down. Prices for transportation, wheat, flour, paper and plastic have all receded from last year’s highs, he said, and Loblaw is pushing suppliers for cost decreases on that basis.
“With lowered costs, we will lower prices,” Mr. Dufresne said.
JULY 26, 2023
Read more here:
https://www.theglobeandmail.com/busines ... july-2023/
Stubbornly high food prices should not be continuing to rise at their current pace, executives from Canada’s largest grocery retailer say – making the argument that food manufacturers are to blame, and not store owners.
Suppliers have raised the prices they charge to grocery giant Loblaw Cos. Ltd. ( L-T -0.64% decrease ) by more than $1-billion so far this year, chief financial officer Richard Dufresne told analysts on a conference call Wednesday to discuss the company’s second-quarter results.
“This is double what we would expect normally,” Mr. Dufresne said. “We have received double-digit increases from the same suppliers who gave us double-digit increases last year. That’s why you see products that are noticeably more expensive than they were just a couple of years ago.”
Mr. Dufresne added that many of these cost increases are not justifiable, considering that prices for commodities that go into those products and their packaging are coming down. Prices for transportation, wheat, flour, paper and plastic have all receded from last year’s highs, he said, and Loblaw is pushing suppliers for cost decreases on that basis.
“With lowered costs, we will lower prices,” Mr. Dufresne said.
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
‘Fair food prices for all’: ACORN calls on government to take action
Read more here:
https://vancouver.citynews.ca/2024/03/0 ... od-prices/
March 2, 2024 - A Canadian organization dedicated to advocating for economic justice demonstrated outside Save-On-Foods in New Westminster Saturday, demanding the government ensure “fair food prices for all.”
The Association of Community Organizations for Reform Now (ACORN) is demanding all the biggest grocery chains “stop price gouging hard-working Canadians” following a National Day of Action and campaign launches in nine cities across Canada.
Canadians struggle to get by during the “affordability crisis,” ACORN says, while grocery stores are making record profits.
“In fact, the profits earned by grocery chains are now twice what they were before the pandemic,” it said in a news release.
Jim Stanford, economist and director at the Centre for Future Work Vancouver, says there are several factors that have led to high food costs — including higher energy costs and oil prices — but that doesn’t explain all of the price increases.
Read more here:
https://vancouver.citynews.ca/2024/03/0 ... od-prices/
March 2, 2024 - A Canadian organization dedicated to advocating for economic justice demonstrated outside Save-On-Foods in New Westminster Saturday, demanding the government ensure “fair food prices for all.”
The Association of Community Organizations for Reform Now (ACORN) is demanding all the biggest grocery chains “stop price gouging hard-working Canadians” following a National Day of Action and campaign launches in nine cities across Canada.
Canadians struggle to get by during the “affordability crisis,” ACORN says, while grocery stores are making record profits.
“In fact, the profits earned by grocery chains are now twice what they were before the pandemic,” it said in a news release.
Jim Stanford, economist and director at the Centre for Future Work Vancouver, says there are several factors that have led to high food costs — including higher energy costs and oil prices — but that doesn’t explain all of the price increases.
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
Food prices are sure going up.
Cost of food in Canada increased 3.90 percent in January of 2024 over the same month in the previous year. Food Inflation in Canada averaged 3.93 percent from 1951 until 2024, reaching an all time high of 20.18 percent in July of 1978 and a record low of -7.14 percent in December of 1952. source: Statistics Canada.
https://tradingeconomics.com/canada/food-inflation
Cost of food in Canada increased 3.90 percent in January of 2024 over the same month in the previous year. Food Inflation in Canada averaged 3.93 percent from 1951 until 2024, reaching an all time high of 20.18 percent in July of 1978 and a record low of -7.14 percent in December of 1952. source: Statistics Canada.
https://tradingeconomics.com/canada/food-inflation
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
March 20, 2024 - Canada grocery prices: Canadian shoppers guffaw at 'unbelievable' $40 tub of feta at Loblaws store in Ottawa
One expert told Yahoo Canada this kind of pricing is reflective of the type of business model the grocery empire Loblaw runs
Read more here:
https://ca.news.yahoo.com/canada-grocer ... 05730.html
A nearly $40 container of feta being sold at Loblaws is baffling grocery shoppers, especially since similar products can easily be found for more than half the price at other retailers.
But one expert told Yahoo Canada this kind of pricing is reflective of the type of business model the grocery empire runs — one that doesn’t distinguish itself as being a price leader, but rather one of convenience.
A viral photo posted to the Reddit forum Loblaws Is Out of Control, under the title “Unbelievable,” shows a 1-kilogram tub of Krinos feta cheese sold at a Ottawa Loblaws store for $38.99.
The original poster said that while they mostly shop at discount chain Food Basics, they ran into a Loblaws store to grab something and were “clutching” their “pearls at the prices.”
One expert told Yahoo Canada this kind of pricing is reflective of the type of business model the grocery empire Loblaw runs
Read more here:
https://ca.news.yahoo.com/canada-grocer ... 05730.html
A nearly $40 container of feta being sold at Loblaws is baffling grocery shoppers, especially since similar products can easily be found for more than half the price at other retailers.
But one expert told Yahoo Canada this kind of pricing is reflective of the type of business model the grocery empire runs — one that doesn’t distinguish itself as being a price leader, but rather one of convenience.
A viral photo posted to the Reddit forum Loblaws Is Out of Control, under the title “Unbelievable,” shows a 1-kilogram tub of Krinos feta cheese sold at a Ottawa Loblaws store for $38.99.
The original poster said that while they mostly shop at discount chain Food Basics, they ran into a Loblaws store to grab something and were “clutching” their “pearls at the prices.”
Re: Canada: Grocery chain CEOs deny profits behind rising food prices
Canada: May 1, 2024 : As Loblaw boycott begins, what to know about all the company’s brands
Read more here:
https://globalnews.ca/news/10459526/lob ... sidiaries/
Organizers of a fast-growing boycott movement against Loblaw over high food prices say they are keenly aware they need to target more than just grocery stores to impact the mammoth corporation’s bottom line.
Loblaw Companies Ltd. is the parent company of nearly two-dozen store brands spread across food, pharmacies, fashion, beauty and financial services. The company says it operates over 2,400 stores across Canada, such as Shoppers Drug Mart, Real Canadian Superstore, No Frills and more.
And its PC Financial products, which includes a bank account and credit cards linked to Loblaw’s PC Rewards system, serves roughly three million customers.
That vast network raises the challenge for the boycott movement starting in May, but those leading the charge say they are rising to it.
“I’m going to be closing my PC bank account,” said Emily Johnson, who created the Reddit group r/loblawsisoutofcontrol where the boycott began. “I’ve already moved all of my prescriptions to my local pharmacist as well.”
What else does Loblaw own?
Loblaw’s grocery division alone is expansive.
In addition to its namesake Loblaws grocery store and the aforementioned Real Canadian Superstore and No Frills, it also oversees Freshmart and its affiliates SuperValu, Shop Easy and Axep, Real Canadian Liquorstore.
The company also owns the Asian-focused T&T Supermarket, Zehrs, Valu-Mart, Provigo, No Name, Your Independent Grocer, City Market, Fortinos, Wholesale Club, Maxi, Extra Foods and Dominion Stores in Newfoundland and Labrador.
The company’s PC Express online delivery service serves all of those brands.
Loblaws boycott picks up steam as resentment grows online
Its Joe Fresh fashion brand operates stand-alone stores as well as departments inside Real Canadian Superstore.
Read more here:
https://globalnews.ca/news/10459526/lob ... sidiaries/
Organizers of a fast-growing boycott movement against Loblaw over high food prices say they are keenly aware they need to target more than just grocery stores to impact the mammoth corporation’s bottom line.
Loblaw Companies Ltd. is the parent company of nearly two-dozen store brands spread across food, pharmacies, fashion, beauty and financial services. The company says it operates over 2,400 stores across Canada, such as Shoppers Drug Mart, Real Canadian Superstore, No Frills and more.
And its PC Financial products, which includes a bank account and credit cards linked to Loblaw’s PC Rewards system, serves roughly three million customers.
That vast network raises the challenge for the boycott movement starting in May, but those leading the charge say they are rising to it.
“I’m going to be closing my PC bank account,” said Emily Johnson, who created the Reddit group r/loblawsisoutofcontrol where the boycott began. “I’ve already moved all of my prescriptions to my local pharmacist as well.”
What else does Loblaw own?
Loblaw’s grocery division alone is expansive.
In addition to its namesake Loblaws grocery store and the aforementioned Real Canadian Superstore and No Frills, it also oversees Freshmart and its affiliates SuperValu, Shop Easy and Axep, Real Canadian Liquorstore.
The company also owns the Asian-focused T&T Supermarket, Zehrs, Valu-Mart, Provigo, No Name, Your Independent Grocer, City Market, Fortinos, Wholesale Club, Maxi, Extra Foods and Dominion Stores in Newfoundland and Labrador.
The company’s PC Express online delivery service serves all of those brands.
Loblaws boycott picks up steam as resentment grows online
Its Joe Fresh fashion brand operates stand-alone stores as well as departments inside Real Canadian Superstore.