Loblaw Reverses Course on Ending 50 Percent Discount on Nearly Expired Foods

People shop at a Loblaws store in Toronto on May 3, 2018. The Canadian Press/Nathan Denette

Loblaw Companies Ltd. has announced a reversal of its earlier decision to end the 50 percent discount on food products nearing their best-before dates.

Loblaw Companies Ltd. had recently revised its discount policy for perishable food items close to their expiration date. Instead of the previously-offered discounts of up to 50 percent, the company said it would cap the discount at 30 percent on items like meat, fruit, and vegetables.

The change applied to its various grocery stores, including Loblaws, No Frills, Valu-Mart, Your Independent Grocer, and Zehrs. Loblaw explained that the move aims to create a more uniform and predictable pricing strategy, aligning with practices of its market competitors.

The move was criticized by Canadian politicians such as NDP MP Alistair MacGregor, who demanded Canada’s Competition Bureau look into the matter.

In a Jan. 19 statement to CBC News, the company acknowledged a reversion to its previous policy.

“We’ve listened to the feedback from our customers and colleagues and are reverting [where it existed before] to the 50 percent off discounts,” said the company.

“In the Atlantic, we had not implemented the change and will not. In the rest of the country, customers can expect to see 50 percent stickers returning in the next few weeks.”

The cost of groceries has had a major impact on Canadians’ wallets over the past two years, thanks to food inflation. Prices are expected to continue to rise this year, although not as much as in 2023.

Canada’s 2024 Food Price Report, released last month by the Agri-Food Analytics Lab, predicts the price of groceries will increase by an average of around $701 per family of four this year.

An end-of-year report from the lab found that most families plan to cut back on food spending this year. One of the chief ways they will do that is by changing their food shopping habits.

According to the report, 43.3 percent of Canadians plan to focus on promotional offers to manage higher food costs, while 10.4 percent plan to increase online food purchases.

Over a third of Canadians plan to eat out less often (38.3 percent) and 12.2 percent intend not to eat out at all in 2024.

Those who dine out will choose budget-friendly options (39.4 percent), avoid side dishes or alcohol (24.2 percent), and share meals (13.7 percent).

Some 80.3 percent of Canadians anticipate further increases in food prices in 2024, especially in meat (70.4 percent), produce (62.2 percent), and dairy (42.1 percent).

Last September, after discussions with leaders from major retailers such as Loblaws, Metro, Empire, Walmart, and Costco, Industry Minister François-Philippe Champagne pledged a plan by Thanksgiving aimed at stabilizing grocery prices; however, prices have remained unstable.