Within the turbulent realm of Canada’s grocery industry, a commitment to initiatives aimed at price stabilization, as recently vowed by the government, remains an elusive confirmation. Major grocery corporations have not yet staked their claim in this commitment, which was presented last week by Industry Minister Francois-Philippe Champagne.
As part of these first steps towards price stabilization, the grocers have been said to be considering various strategies. These are believed to range from straightforward discounts to price freezes, and even campaigns of price-matching. Searching for clarity, The Canadian Press attempted to ascertain from major players such as Loblaw, Empire, Metro, Walmart and Costco what these commitments might be in real terms.
Upon reaching out for comment, responses have been scant. Metro has chosen to remain silent, and neither Loblaw, Empire nor Costco have issued a response to these inquiries. A lone voice in the form of Walmart Canada’s Stephanie Fusco, senior manager of corporate affairs, provided a written statement. In her response, she referred to the company’s philosophy of “everyday low prices,” restating their dedication to low prices regardless of promotional schedules.
Fusco elaborated, “Last week, we shared with the government how we will continue to deliver every day low prices during these challenging times.” She expounded on the strategies being employed to combat inflation and suggested several roles for government and regulators to play in curbing food price spikes for the Canadian public.
This dialogue with the grocers followed an ultimatum delivered by the federal government last September that threatened potential tax measures should they not present plans for price stabilization by Thanksgiving.
Canadians, faced with an escalating inflation in grocery prices – 6.9% higher in August than the same time in the prior year – sit amidst an overall national inflation of 4.0%. Affordability woes have catapulted the issue into national concern, with the governing Liberals suffering a lull in support as the issue takes precedence with voters.
Amidst these details, Champagne’s announcement, which held an air of anticipation about the commitments from grocers, was scant on specifics. There was no light shed on the types of commodities that would be impacted by these efforts, muddying the scope and, indeed, efficacy of any such initiatives.
In a dialogue with reporters, Champagne refrained from specificity, opting to retain competitive secrecy in the market. He refused to delineate the individual strategies of each grocer, firmly stating that such judgment should be reserved for the Canadian shoppers themselves.
Resting at the other end of the spectrum is NDP Leader Jagmeet Singh, who criticised the government’s appeal to corporate goodwill as “ridiculous.”
Speaking on the international stage, Champagne drew a parallel to countries like France and the UK, who are also grappling with runaway food prices. Countries like these have implemented systems such as supermarket collaborations on price cuts, price freezes on certain goods, and price caps on staples. As Canada’s grocery industry takes tentative steps on this path, one thing is clear – the Canadian public is watching closely.
