The Great Canadian Grocery Store Boycott

Loblaws Head Office, Source: Alumicor

So let’s talk about this Loblaws boycott that has created a surprising divide on the interweb. I have been reading comments sections and opinion pieces and news articles to learn about this movement, and there seems to be a lot of confusion and some pretty judgy “all or nothing” Karen’s out there, but it’s an important movement to consider.

The idea or challenge is to boycott all of the Loblaws brands of grocers for the month of May. These brands include Loblaws, Fortinos, Zehrs, Real Canadian Superstore, No Frills, Valu-Mart, Independent, Shoppers Drug Mart and more. The hope is that the boycott has enough of a financial impact to show the corporation that we can vote with our dollar and give our money to another big brand, or better yet a local small business, and that the loss in revenue will lead to a change in cost of goods.

Why is this boycott happening?

If you haven’t noticed the steep rise in grocery prices, I envy you so much, and how??? Canada has seen an outrageous climb in grocery costs, spurred by the pandemic and aftermath. However, the issues that once plagued the big grocery guys, and gave reason for price increases, based on what I can see from the overflowing shelves of fresh and packaged foods, are a thing of the past.

According to DailyHive.com, George Weston Ltd. took in $45.2 million last year, with “profits soaring” 22% higher than the previous year. And the previous year? In 2022 Galen & co. announced an almost unheard of  30% stock price leap. Galen Weston, former CEO of Loblaws, had a salary increase of 55% in 2023, and earned $8.4 million himself. Note that Galen Weston announced that he was stepping down as CEO of Loblaws in 2023 as well.

Since Loblaws parent company is reporting skyrocketing profits and huge dividend earnings at a time when Canadians are dealing with a steep jump in interest rates and many are literally struggling to afford to eat, we can only assume that the price of groceries is not due to inflation, supply chain interruptions or food shortages. Rather, they are due to the deep pockets that have been profiting off of people’s pandemic desperation and poverty, and riding on the coat tails of problems that no longer exist.

If you need further reinforcement that Loblaws needs to be held accountable for price gouging, remember the whole bread price-fixing fiasco? In 2017, Loblaw Companies Limited admitted to participating in a price-fixing scheme related to the price of bread. The scheme involved coordination between several major Canadian grocery retailers and certain bread suppliers to artificially inflate the price of bread for over 14 years, from 2001 to 2015. And while they offered consumers affected by the fixing $25 gift cards to their own stores as compensation, they have yet to really be held accountable. And guess what? Gift cards drive sales. This is one of the laws of marketing. People always spend more than what’s on the card. So while they may have lost revenue in the great gift card giveaway, Loblaws still drove traffic and sales in their stores in the midst of being one of the biggest corporate villains in Canadian history. Trust me my friends, these folks are not dumb.

And ya, I think that Galen and his mighty shareholders are not opposed to taking complete advantage of the consumer for corporate greed.

With that in mind, Loblaws is sneakily and strategically pricing a demographic of people out of their higher end stores like Zehrs & Fortinos, and driving them to their discount brands like No Frills and Valu-Mart. This seems good for the consumer at first, because a higher volume of produce moving through these stores can (hopefully) ensure that our fruits and veggies will be fresh, and affordable groceries and deep discounts can be found. Not true. The lower prices at the discount brands are only in comparison to the more expensive options, allowing the corporation to gouge consumers in the discount brands too, while seeming like they are offering lower prices and giving the impression they care.

Source: Facebook

Tbh it seems like an attempt to “clean up” or “get the riff raff out” of their higher end stores, and create an environment where only people making very good money can shop. They will eventually do so only amoungst a crowd of their money-making- equal peers, leading to a gentrified shopping experience where price does not matter, and the rich will eat.

Loblaws is at the forefront of this movement – my prediction is that in the discount stores the prices will begin to normalize again once inflation starts to slow and interest rates fall. In the high-end shops, the food prices will continue to rise and offer more and more luxury food items priced out of the reach of the average consumers’ desperate grasp for an equal opportunity to put food on the table.

High-priced groceries are also turning people away from supporting the restaurant industry, because if you think that local restaurants can rise above these prices you are sadly mistaken. Prices at sit-down establishments, catering companies, delis, all food service businesses really, have risen not only due to the higher cost of goods, but also the rise (and well-deserved raise) of minimum wage. I consider bars and restaurants to be pillars in a thriving local economy that attracts visitors and locals alike, and to see this industry take another hit after the pandemic is heart-wrenching.

The other horrible side effect happening due to the astronomical price of groceries is consumers are turning to cheaper food options like fast food and ultra-processed and refined foods aka things like Kraft Dinner and Pizza Pops - food void of nutrients, hyperpalatable, designed to overeat, and unfortunately super-affordable. It’s a vicious cycle to drive profit and harm health, and regardless of boycott, the cycle will continue.  And it means we are creating an even bigger population of people who just simply cannot afford to put real, whole foods in their fridges. We are living in a country that will have to rely even more heavily on healthcare than ever before in a time when we are seeing a shift to privatized care that will leave our health unaffordable. Any shred of dignity left for those of us who are unrich will leave the minute we are in need of a hospital bed but are forced to lay in a hallway because we won’t be able to afford to rent the mattress.

The real question is, can this boycott actually create change?

First and foremost, we need to address that this boycott will most likely drive dollars to other big grocery chains who are no more innocent in the price-gouging game, but may use this opportunity to create more loyalty by charging less than Loblaws brands. Online comments sections on posts discussing this boycott seem to overwhelmingly mention that Metro is the place to save now, and I can remember a couple of years ago thinking Metro was so expensive. I hope it drives more traffic to locally, small, family-owned business that care about consumers as part of a supportive community.

According to a 2023 article in Forbes magazine “Do Boycotts Actually Work?”, author Janice Asare discusses that boycotts can change corporate policy and incite political change, but does not identify any moments where boycotts have made any impact on cost of goods.

I see people arguing online that if we can’t completely avoid the Loblaws family of stores then we shouldn’t be sharing and supporting the boycott. In my eyes, as long as I significantly reduce my spending dollars there, and we all attempt to do the same, whether or not we are perfect in execution is beside the point. We need to make Loblaws notice that we can choose to spend our dollars elsewhere.

Even then I don’t think they’ll care.

In order for Loblaw Companies Limited to be held accountable, the government needs to step in – what that looks like I do not know, other than that Galen’s grocery game shouldn’t allow them to “name that price” when it comes to the food that we need for basic survival.

One thing I will say about this boycott – I hope it will force the brand to bring prices down and be a socially responsible corporation that will still make the big bucks, but what I see happening is us being exposed to story after story, including this post, that perpetuates a conversation with Loblaws as the star of the show – in marketing it’s called “top of mind”, and it’s something all brands strive for. When you think of groceries over the next month, you’ll probably think of Loblaws first, and whether or not you choose to shop at one of their brands this time, their name will always appear somewhere in that thought process when it comes time to buy dinner, subtly reminding you they exist and are an option.

I don’t know if I’ll be able to pull the boycott off – and many of us won’t, because of affordability, convenience, preference, product need etc. - but I will try to shop more at my fave local stores, and I am very happy to do so. Stay tuned to my Instagram for reels highlighting my fave local spots in Niagara. At the very least, you should use this month as an excuse to get out and try local farms, butchers, grocers, bakeries and restaurants - chances are they’re just trying to put food on their tables too, and that’s something worth supporting.

To be honest, and sadly, it’s hard to imagine that this boycott (ish) will move the needle on price or policy. The harsh reality is the house always wins, especially when that house is Galen Weston’s.