The company, which has 200 grocery stores in Quebec, specifies that the temporary price freeze should allow consumers to better manage their food budget in this period characterized by galloping inflation.
• Read also: Price freeze: “people are likely to save a lot”
Food prices have seen an upward movement, due to higher costs faced by suppliers caused by rising fuel prices, labor shortages, weather and international conflicts, such as the war in Ukraine.
“As of today, we are freezing the prices of all no-name products, representing more than 1,500 common grocery products, sold in our stores across the country until January 31, 2023” , said Galen Weston, President of Loblaw.
“Over the next few weeks, we will continue to lower our prices here, in flyers and in-store, to alleviate pressure from soaring food costs,” added Weston.
The company says it wants to give value to consumers, thanks to its PC Optimum program which is on track to offer its members more than $1 billion, the largest amount to date.
For Sylvain Charlebois, professor and director of the Agrifood Analytical Sciences Laboratory at Dalhousie University in Nova Scotia, this decision to freeze the price of these products is a marketing decision.
“People are seeing the prices go up. The sector needed to show some empathy [envers le consommateur]. It’s been 13 months [bientôt 14] that food inflation increases,” he explained in an interview with TVA Nouvelles on Monday.
Mr. Charlebois believes that this price freeze period will allow citizens to “save a lot”.
According to these observations, at least fifteen banners around the world have frozen the price of some of their products. In Canada, however, Loblaw is the first to do so.
“Loblaw may be a month late…but better late than never,” said Sylvain Charlebois, who believes other banners will follow suit.
“The holiday season represents about 20% of banner sales for the year,” said Mr. Charlebois. […]Metro and Sobeys may have to do something too.”