Despite backlash, some Loblaw stores still discount perishable food by 30% not 50%
Although Loblaw has now reinstated its popular 50 per cent discounts on per‐ ishable food, some cus‐ tomers say they still feel shortchanged.
That's because more than 100 Real Canadian Super‐ stores owned by Loblaw con‐ tinue to discount all food nearing its best-before date by only 30 per cent.
"I was disappointed," said Kim Siever when he recently visited his local Superstore in Lethbridge, Alta., and found no half-off deals.
"Clearly they can afford it if some stores are offering it," he said, adding that by keep‐ ing the discounts at 30 per cent, it makes it difficult for some shoppers to buy what they need "to be able to feed their families properly."
Some stores offer deep‐ er discounts
Loblaw Companies Ltd. sparked customer backlash in mid-January when the gro‐ cery giant said it was reduc‐ ing its 50 per cent discounts to 30 per cent for perishables in all stores. Due to public outcry, Loblaw reversed the policy within days.
But the retailer told CBC News that doesn't mean halfoff deals are available in every grocery store.
"All of the discounts went back to what they were previ‐ ously, which ranged between 30-50% off depending on store type … and product," said Loblaw spokesperson Catherine Thomas in an email. "Customers enjoyed these, and we listened."
Even so, the company's public flip flop sparked new complaints, because it shed light on the fact that some of its grocery stores offer deep‐ er discounts than others.
Several customers in At‐ lantic Canada told CBC News their Loblaw-owned Atlantic Superstores mark down all expiring food by 50 per cent, including bread, produce and meat.
CBC visited several Loblaw-owned No Frills and Loblaws stores in Toronto and Vancouver, and found that most items were also discounted by 50 per cent. However, meat often got a 30 per cent-off sticker.
Thomas said "most dis‐ count stores (like Real Cana‐ dian Superstore)" mark down all perishables by 30 per cent.
She did not say why dis‐ count chain No Frills and bigbox Atlantic Superstores of‐ fer 50 per cent markdowns.
Customer Warren Chap‐ man argues that the compa‐ ny's explanation that Real Canadian Superstore doesn't do half-off deals is flawed. He says his location in Duncan, B.C. - the only Loblaw-owned grocer in the city - used to of‐ fer them.
Chapman says about five years ago, his Superstore re‐ duced the discount to 30 per cent. He now wants Loblaw to reverse that decision - as it has done for other stores.
"They came out saying ba‐ sically they made a mistake, and they felt that it's correct or justifiable for it to be 50 per cent," said Chapman. "I just don't see how they could justify treating their cus‐ tomers at Superstore differ‐ ent than they're treating their customers at their other stores."
Canadians hungry for discounts
Back in January, before the company backtracked, Loblaw spokesperson Thomas said the company was nixing its higher discount to provide "a more pre‐ dictable and consistent offer‐ ing."
Now, some food policy ex‐ perts argue that, during a time of rising food prices, Canada's largest grocer should offer 50 per cent markdowns across its stores.
"I think that they need to have a better understanding of the landscape of what's happening in Canada and do better," said Tammara Soma, a food policy expert and as‐ sociate professor at Simon Fraser University in Burnaby, B.C.
Although the pace has slowed recently, the cost of food has risen 23 per cent per cent since 2020, ac‐ cording to Statistics Canada.
"So many Canadians are suffering and they rely on Loblaws because Loblaws ex‐ ist all across Canada," said Soma.
In a news release last month, Loblaw listed its "on‐ going efforts to lower food prices," which include open‐ ing more discount stores, in‐ troducing new promotions and offering deeper discoun‐ ts on everyday items.
"We're turning over every stone in our efforts," the gro‐ cer stated.
CBC News asked other major grocers in Canada what kind of discounts they provide for perishable food. Metro said on average, it of‐ fers a 30 per cent markdown. Walmart and Empire (owner of Sobeys and Safeway) said they offer discounts, but did not specify the amount.
WATCH | Loblaw to rein‐ state 50 per cent discount on perishable food:
Sylvain Charlebois, direc‐ tor of the Agri-Food Analytics Lab at Dalhousie University in Halifax, says shoppers are hungry for bargains.
A survey commissioned by his lab found that out of 2,880 Canadians polled in late January, 59 per cent con‐ sistently seek out discounted food products.
However, close to half said they wouldn't buy per‐ ishable food unless it were marked down by at least 50 per cent.
"The quality is not there, the freshness is not there. So you're kind of expected to be incentivized to rescue some of these foods," said Charlebois. "Fifty per cent is kind of the sweet spot."
He says Loblaw should of‐ fer half-off deals at all its standard grocery chains to avoid more backlash.
"As a national player, you have to be extremely care‐ ful," when offering different discounts at different stores, said Charlebois, adding that the company risks being la‐ belled an unfair grocer fol‐ lowing unfair practices.
"To me, that criticism is warranted," he said.
According to Charlebois' online resume, he received a $60,000 grant in 2018 from the Weston Foundation, which has ties to Loblaw. He has said the money was giv‐ en to a student who needed financial support.
'Use your voice'
Soma says that if grocery shoppers want better deals, they should speak out, just like they did in January when Loblaw tried to reduce all dis‐ counts to 30 per cent.
"We really need to use our voice," she said. "In Canada, we don't have a lot of options in terms of what supermar‐ kets we go to."
A 2022 Competition Bu‐ reau report said the industry was dominated by a handful of major players and needed more competition to bring prices down.
During his interview with CBC, Superstore customer Chapman made a plea to Loblaw.
"Give us that 50 per cent off, come on."
WATCH | Only some Loblaw stores offer 50 per cent discounts: