Loblaws shoppers threaten to strike as CFO claims food inflation is the lowest in years

Loblaw shoppers have been venting on social media for months about the retailer’s prices, and now they are organizing a boycott, reports the Toronto Sun.  

Reddit group Loblaws Is Out of Control formed back in November as a way for shoppers to vent about the grocer’s cost of food, and now has more than 25,000 members.

The group posts photos of overpriced items at Loblaws locations, tips on how to save money, and if Loblaws competitors have better prices on certain items. However, Loblaws Is Out of Control is taking its gripe to the next level and is calling on shoppers to boycott the stores in May. The list of grocers includes Loblaws, Real Canadian Superstore, No Frills, Zehrs, Fortinos, Valu-Mart, Wholesale Club, Your Independent Grocer, T&T Supermarket, PC Financial, and Shoppers Drug Mart.

The shopper strike comes at a time when Loblaw is claiming food inflation in Canada is continuing to decline and that the retailer’s inflation rate in February is better than Consumer Price Index food inflation.

According to Richard Dufresne, CFO at Loblaw Companies Limited, food inflation is now sitting at 2.4%, which is the lowest since July 2021 and the first time it has been lower than overall inflation since October 2021.

“We are starting to see supply chains recover, a stabilization — and in some cases reduction — in commodity prices and shipping costs beginning to return to pre-pandemic rates, key factors in overall food pricing,” said Dufresne. “Food cost increases from suppliers are starting to slow, and while some proposed increases remain above inflation, the reductions are encouraging.”

Related:Loblaw tests receipt scanning at self-checkout

Dufresne noted some things Loblaw is doing to keep food prices down, including its Hit of the Month campaign which brings aggressive prices on key products across the company’s entire store network, and by providing deeper discounts on 35 everyday items.

Loblaws Is Out of Control wants a 15% reduction in prices and for the retailer to remove its member-only pricing connected to its PC Optimum card before it calls off the boycott. It also is forming a petition it plans on sending to the House of Commons.

Grocer CEOs have met with Canadian lawmakers to discuss the high price of food over the past few months and in October agreed to offer more discounts, price-matching campaigns, and price freezes. That campaign, however, is now over.