Loblaw Companies Ltd. appears to be undertaking efforts to protect its brand against allegations of profiteering from higher prices, but experts say the communications moves may be “too little, too late,” now more than a year into mounting customer frustration with high food costs. , the company noted that profit growth of over 30 per cent was due to “lapping a prior year charge.
“I think that Canadians are pretty upset about the profits that major supermarket chains have been registering recently in Canada, given the high inflation rates. The fact that their profits have gone up faster than inflation, I think is quite upsetting.” As Loblaw pushes back directly on grocer profiteering narratives, von Massow said the business is being impacted by macro conditions. He said there are many reasons behind price increases, “and if grocers have played any role at all, it has been a very small role.” According to von Massow, people are looking for easy answers behind price increases at grocery stores.
“They're also not providing us very detailed information… where are the percentages? What are the actual increases? Why don't you give us this information by category and tell us what you're actually doing?” he said. Soberman said that increases in energy and raw materials costs have brought about higher prices for the global brands that act as suppliers.
He said worse performing supermarkets could be insulated from criticism by pointing to competitors with higher profits.
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