On May 28, 2024, according to a report by CTV News, the three major chain supermarkets in Canada, Loblaws, Sobeys, and Metro, failed to commit to lowering prices.
The Canadian Competition Bureau will investigate whether these companies, which have seen a surge in profits in recent years, are engaged in illegal activities.
Among these three supermarkets, Loblaws has the closest relationship with the Greater Vancouver area because T&T Supermarket belongs to the Loblaws group.
Many people who frequently shop there have experienced the high prices at T&T.
Despite boycotts of Loblaws in several provinces in Eastern Canada in May 2024, there has been little response in the Greater Vancouver area.
Perhaps due to affluence or laziness, some supermarkets dare to ignore customer demand.
According to Statistics Canada, food prices in 2024 have risen by 21.4% compared to 2021, with some items like cooking oil seeing price hikes of up to three times.
While supermarkets attribute the price increases to inflation, the government has found that the increase in food prices far exceeds the overall inflation rate.
Furthermore, the sales revenue and net profit margins of the three giants have continued to rise over the past three years.
While many Canadians face food shortages, these supermarket giants are making massive profits, which the government deems unethical.
In fact, prices at American chain supermarkets are generally lower than those in Canada, indicating exploitation of Canadian consumers by domestic companies.
The three investigated retailers are Loblaw Companies Limited, Metro Inc., and Sobeys Inc., which collectively dominate 70% of Canada's grocery retail market.
The combined actions of these three giants are enough to control prices in Canada because groceries are essential, and failure to lower prices will increase the cost of living for consumers.
Since 2023, the Canadian government has been urging these giants to stabilize prices, but only a few American companies have responded, while Canada's three major supermarket giants have refused to commit to price reductions.
The public is calling on the Canadian government to explore various methods to enhance industry competition and provide consumers with more choices.
Approaches include introducing supermarket giants from Europe and the United States.
The government has been in contact with several international supermarkets in the hopes of attracting them to the Canadian market without offering direct subsidies.
Another approach is to investigate and penalize the three giants.
However, Canadian retail expert Stephens believes that attracting other chain giants to this market is not easy due to the population of Canada being equivalent to that of California.
In contrast, supporting local small retailers and legislating to limit the greed of the three giants may be more effective.
As a resident of Greater Vancouver, I am often shocked by the prices at T&T Supermarket.
Compared to Chinese supermarkets, Walmart, Foody Mart, and even some individually-owned stores, T&T's prices are much higher.
After T&T became a subsidiary of Loblaws, the shopping environment and grade have improved, but prices have continued to rise.
According to CTV, grocery merchants argue that they want to offer better prices, but excessive government restrictions make it difficult for them to achieve this goal.
However, consumers do not accept this excuse.
In early May 2024, angry consumers launched a boycott of Loblaws and its brands in a Reddit group, forming a group called "Loblaws is out of control," which has over 62,000 members.
They demanded that Loblaws sign a "Code of Conduct for Groceries" to lower food prices and establish a cap on basic commodity prices.
Currently, this boycott has expanded to include the five major grocery merchants, including Loblaw, Sobeys, Metro, Walmart, and Costco.
Consumers have started to switch from one retailer to another or seek alternatives outside the three giants, and this pressure may force Loblaws back to the negotiating table. However, monopolistic companies usually do not easily compromise.
These giants have completed their market layout, making it difficult for newcomers to find suitable operating properties, even if they intend to enter the Canadian market.
Sobeys denied all allegations and called the Competition Bureau's investigation "illegal."
The Competition Bureau stated that it is investigating whether the "property control" of these companies restricts market competition.
Loblaws is cooperating with the Competition Bureau's review.
For ordinary people, it is powerless to resist the manipulation of monopoly giants. Due to information asymmetry, many people are not even aware that supermarket giants are raising prices due to inflation.
Hopefully, the Competition Bureau can bring Canada's prices back on track.
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