Loblaw backtracks on expiring food discount

Loblaw’s change in the way it discounts food close to their best-buy date was short-lived, reports CBC News.

The Canadian grocer announced last week it would be offering 30% cuts to expiring food rather than 50%. Loblaw said the move would allow stores to be more consistent and predictable in pricing, and the 30% discount is the standard in the Canadian grocery industry.

The decision prompted officials in Canada to call on the Competition Bureau, which investigates anti-competitive practices, to get involved. 

Loblaw told CBC News that after listening to shopper concerns and colleagues it decided to go back to the 50% discount. Loblaw also owns Atlantic Superstore, No Frills, Dominion, and Freshmart stores.

The change had not been implemented at stores in the Atlantic region, but it was used in stores throughout the rest of the country. Loblaw said it will take a few weeks to roll out the 50% discount again.

Innovation Minister Francois-Phillippe Champagne has been calling on Canadian grocers to lower their prices for months. Leaders of some of the top retailers have been meeting with lawmakers to come up with a solution, but so far, the only thing that has been produced is a pledge to stabilize costs.

Prime Minister Justin Trudeau has threatened imposing a tax on grocers if they did not create a plan to restrict the rise in food prices, reports Reuters.

Related:Loblaws stays on track following solid third quarter

Meanwhile, Champagne said a grocery task force in Ottawa will track the grocers to make sure they follow through on the cost pledge.