Loblaw’s decision to freeze the price of 1,500 no-name brand products offered in more than 200 grocery stores in Quebec until January 31 is a marketing decision, but one that will really help the consumer.
• Read also: Loblaw freezes the price of 1,500 no-name branded products
This is what specialist Sylvain Charlebois, professor and director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University in Nova Scotia, argues.
“I think the industry needed to show empathy towards the consumer. It’s been 13 months [bientôt 14] that food inflation increases,” explained Mr. Charlebois in an interview with TVA Nouvelles.
He considers that even if the price freeze period lasts only three months, “in an inflationary period, it is a lot. It’s a good thing because people are likely to save a lot,” he says.
The demand for these products could therefore increase, which does not worry the food expert.
“You have to remember that we are talking about a private label. The supply chain is controlled by the banners. He might have empty shelves, but Loblaw is very well organized,” he says.
According to his observations, at least fifteen banners have frozen the price of their products, from 100 to 300 products, around the world. In Canada, Loblaw is the first company to do so with more than 1,500 products.
He also considers that this price freeze allows the company to show that it has empathy for consumers, while four out of five people in Quebec believe that banners are responsible for food inflation.
“Loblaw may be a month late…but better late than never. […] Metro and Sobeys may also be forced to do something,” concludes Sylvain Charlebois.