Loblaw is reversing course on its decision to no longer offer 50 per cent in discounts on items nearing expiry after public backlash.
In a statement to Global News, the company said it was reverting to the markdown of 50 per cent for last-day sale items after listening to customers and colleagues about the initial decision.
“We’ve listened to the feedback from our customers and colleagues and are reverting (where it existed before) to the 50% off discounts,” the company’s public relations department said in a statement.
“Customers can expect to see 50% stickers returning in the next few weeks.”
Canada’s largest grocery company drew public ire after deciding to mark those sale items down across the board, calling it a move to provide more predictability and consistency.
The decision, however, prompted many to ask questions about why the change was being made, with the Canadian Association of Retired Persons (CARP) calling it disappointing.
“It is a major increase for some people. It really hurts them. And we were very surprised and disappointed that a company would do something like this,” CARP chief education and advocacy officer Bill VanGorder told Global News.
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A day after the announcement, NDP MP Alistair MacGregor called on the Competition Bureau to look into whether there were “possible anti-competitive practices” being conducted by Loblaw over the change.
“I wish to draw attention to a concerning aspect highlighted in Loblaw’s statement, indicating that this shift in pricing strategy is in alignment with other major grocery retailers,” MacGregor wrote in a letter addressed to the Competition Bureau dated Jan. 17, seen by Global News.
However, both the Retail Council of Canada and competition expert Michael Osborne said price-matching and discount-matching are normal practices in the industry.
Metro told The Canadian Press earlier this week that it has marked down items nearing their best-before date by up to 30 per cent for more than two decades.
On Jan. 16, the Competition Bureau told Global News it is aware of the change by Loblaw but says it would be inappropriate to comment. Its statement says that the Competition Act mandates that any work it does must be kept confidential until conclusions are reached. This includes whether an investigation exists.
The Competition Bureau confirmed it has received MacGregor’s letter, but is unable to comment further.
Canada’s grocers have been facing enhanced scrutiny after food inflation at many stores remains in the spotlight, even though it has slowed from multi-decade highs. Prices had risen by 4.7 per cent year-over-year in November, before holding steady in December.
In an effort to stabilize prices, Innovation Minister François-Philippe Champagne pushed grocers to come up with plans.
As for Loblaw’s discount policy change, the minister deferred comment on any allegations of “discount-fixing” to the Competition Bureau.
— with files from Global News’ David Baxter and Abigail Bimman and The Canadian Press
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