OTTAWA – Leading grocers in Canada are not yet positive whether they are dedicated to special promotions to steady grocery prices, as was lately assured by the federal government.
Industry Minister Francois-Philippe Champagne broadcast last week that the grocers have offered initial plans to steady prices, which comprise of price freezes, discounts, and price-matching campaigns.
The Canadian Media has reached out to the grocers – Empire, Loblaw, Walmart, Metro, and Costco — to approve what precisely each of them has promised to do.
Metro declined to comment, while Loblaw, Costco and Empire and have not replied to requests for information.
In a written document, a spokeswoman for Walmart Canada informed the company strategies to keep presenting “everyday low prices,” which denotes to Walmart’s approach to offer low prices on a consistent basis, rather than on promotion alone.
“Last week, we communicated with the government how we will remain to offer everyday low prices for Canadians throughout these hard times,” said Stephanie Fusco, senior manager of corporate affairs.
“We’re taking steps to fight inflation and retain prices low and, in our proposal, also indicated numerous recommendations on the part government and officials can play in curbing food price inflation for Canadians.”
The federal government provided an ultimatum to grocers in September, indicating they should offer plans to even out grocery prices by Thanksgiving or face possible tax measures as an alternative.
The move came in reply to the burden Canadian families are enduring as grocery prices continue to swiftly climb. Grocery prices in August were 6.9 % higher than they were a year ago. In the meantime, the country’s general inflation rate was 4.0%.
Current polls display support for the governing Liberals dipping as affordability remains top-of-mind for voters.
Champagne’s declaration last week on the pledges from grocers comprised little detail. The minister did not provide clarification on what products may be subjected to special promotions, for example.
When requested by reporters on how Canadians will distinguish these promotions are any unalike the ones frequently offered by grocers, Champagne said they do not want to reveal what each company has promised to do.
“I’m indicating those are examples of what we see in the strategies, because I want the market to be competitive. I cannot say I acknowledged that from Loblaws, I received that from Metro, I received that from Costco, I received that from Walmart,” he said on Thursday.
“Individual grocer has different arrangements. So, it will be up to Canadians to choose them.”
NDP Leader Jagmeet Singh criticized the Liberals’ tactic on grocery prices during a news discussion last week, saying their “strategy to ask CEOs politely to reduce prices is absurd.”
The industry minister has recurrently referred to other countries, such as UK and France, as examples for grocers to bench mark, as countries around the globe have fought with skyrocketing food prices.
In August, the annual rate of food inflation was 13.6 % in the UK and 9.8% in the eurozone.
The French government reached a three-month contract with supermarket chains previously this year for them to reduce prices on hundreds of staples and various other consumables, which is likely to be prolonged through the summer.
In the U.K., grocery giant Asda declared in June its strategies to freeze prices on 500 products until the end of August.
Other European countries have authorized price controls for staple foods. Hungary, for example, put price caps in place last year for items such as eggs and potatoes.
