Grocery chains promising more discounts, price freezes to stabilize food costs, minister says
The five largest grocery chains have delivered plans to stabilize food prices to the federal government, Industry Minister François-Philippe Champagne said Thursday.
Champagne met with the heads of Loblaw, Sobeys, Metro, Costco and Walmart in Ottawa last month. The minister told them the government wanted to see their plans to stabilize prices by Thanksgiving.
The grocery chains are promising more discounts, price freezes and price-matching campaigns, Champagne said Thursday.
"These measures will bring a much needed [and] more competitive marketplace and the winners of that are obviously Canadians," he said, adding that Canadians should expect to see grocers start rolling out these plans "within days."
In August, the price of food purchased from stores increased by 6.9 per cent compared to last year. While that's still almost twice the overall inflation rate of 4 per cent, it's down from recent high of more than 11 per cent.
The Competition Bureau reported in June that Canada's grocery sector lacks competition and is dominated by three domestic giants: Loblaw, Sobeys and Metro. It called on the government to encourage new market entrants to bring down prices.
Innovation, Science and Industry Minister Francois-Philippe Champagne speaks at Canada's Competition Summit in Ottawa on Thursday, Oct. 5, 2023. (Sean Kilpatrick/The Canadian Press)
Champagne was pushed by reporters to explain how he can be sure government pressure resulted in the actions grocers are now promising.
Metro told CBC News last year that annual price freeze campaigns between November and February are "industry practice."
In response, Champagne claimed the September meeting was the first time all five grocery CEOs had been brought together by the federal government in the same room.
"I think we've been a catalyst to bring [these actions] to the forefront," he said. "This is day one of a process … What we have achieved would be a catalyst for more measures, faster measures and long lasting measures.
Champagne also said that the examples he gave were only part of the plans grocers have presented to him. He said he wouldn't reveal more details in order to ensure fair competition.
The government said last month it also plans on changing the Competition Act to give the bureau more power to take action. The legislative changes would include allowing the bureau to "compel the production of information to conduct effective and complete market studies," a government press release said.
