Grocery conglomerates have politicians and shoppers questioning rising prices
Loblaw, Sobeys and Metro make up more than half of all food retail sales in Canada, according to the Who's Who 2022 report by industry trade magazine Canadian Grocer.
The flyer for the Victory Meat & Produce Market, a small grocer in New Brunswick, recently featured fresh local turkey for $3.99 a pound, two bags of carrots or onions for $4 and a bunch of celery for $2.29 — prices that rival its national competitors.
For 81 years, the independent store has offered quality products at affordable prices, earning it a loyal customer base despite the increasing dominance of national grocery chains.
“We have long-term relationships with suppliers and local growers, and staff that have been here for 20 years,” said Alex Scholten, co-owner of the Fredericton store. “Our customers are like family and I think those relationships are what has sustained us for so long.”
The mom-and-pop style business has become increasingly rare in Canada’s highly consolidated grocery industry.
Loblaw, Sobeys and Metro make up more than half of all food retail sales in Canada, according to the Who’s Who 2022 report by industry trade magazine Canadian Grocer.
Add Walmart and Costco to the tally, and just five companies control three-quarters of grocery sales across the country, the report found.
That market concentration has come under intense scrutiny in recent months as food prices increased at their fastest clip in 40 years.
All five companies have faced accusations of profiteering, with executives summoned to testify before a parliamentary hearing in Ottawa where they were grilled by MPs about higher grocery bills.
The grocery executives denied the accusations, telling MPs that their margins on food are low.
“The truth is we are at the end of a very long food supply chain that has economic inputs at every step and stage,” Empire president and CEO Michael Medline said to the committee in March.
The federal competition watchdog has separately launched a study into grocery store competition in Canada, questioning whether “competition factors” — in addition to extreme weather, higher input costs, Russia’s invasion of Ukraine and supply chain disruptions — could be affecting the price of food. The Competition Bureau plans to publish its findings in June.
The study comes as Ottawa conducts a long-promised review of Canada’s competition laws, one that strives to “make life more affordable for Canadians,” Innovation Minister Francois-Philippe Champagne said when the review was launched in November.
