After facing a significant backlash, Loblaw Cos. Ltd. has decided to reinstate the 50 per cent discount on food nearing its best-before date. The company, Canada’s largest food retailer, received widespread criticism for eliminating the deep discount, prompting a reversal in its decision.
In a statement released on Friday evening, Catherine Thomas, a spokesperson for Loblaw, acknowledged the feedback from customers and staff. She stated that the company is heeding the concerns and will reintroduce the 50 per cent discounts in stores where they were previously available. Thomas assured customers that they can expect to see 50 per cent discount stickers returning in the coming weeks.
While Loblaw’s discount stores, including No Frills and Real Canadian Super Stores, will maintain a top markdown of 30 per cent off, the decision to bring back the 50 per cent discount is seen as a response to the public outcry against the initial reduction.
Earlier in the week, Loblaw announced a cap of 30 per cent on discounts for food approaching its best-before dates at its Loblaws and Zehrs locations. This move generated unexpected backlash, catching the retailer off-guard. Sylvain Charlebois, director of the AgriFood Analytics Lab at Dalhousie University, noted that the reaction to the decision was surprising and criticized the company for eliminating the higher discount during a time of high inflation and financial strain for many consumers.
The controversy over the discount reduction added to the scrutiny Loblaw and other major grocers face on Parliament Hill and from the public, especially considering the challenges posed by high inflation and rising interest rates. Critics argue that eliminating the deeper discount may have contributed to negative perceptions about larger companies and played a role in the strong public reaction.
Loblaw, along with other major players in the grocery industry, has been under scrutiny from the federal government over concerns about market concentration and pricing. Federal Industry Minister François-Philippe Champagne has been engaging with grocers globally to explore the possibility of attracting new players to the Canadian market and fostering competition against the dominant Big Five companies.
Despite these efforts, recent reports suggest that many major international grocers currently have no plans to expand into the Canadian market, as revealed earlier this month by the Star’s Jake Edmiston.
