Canadian food expert believes Loblaw boycott won't work and could backfire instead

Mar 23 2024, 12:00 pm

As a boycott of Loblaw-owned stores gains steam across Canada, a prominent Canadian food expert is sharing his skepticism about it bearing desired results.

Members of the “Loblaws Is Out Of Control” Reddit community plan to boycott all Loblaw storesā€”including No Frills, Shoppers Drug Mart, and Real Canadian Superstoreā€”for May.

The group, which boasts more than 33,000 members and is growing rapidly, says the boycott targets Loblaw in particular because it has become the face of Canada’s cost of living crisis.

“Seeing groceriesā€”an essential that nobody can avoid paying forā€”rise beyond the rate of inflation is really upsetting a lot of people,” the group’s founder, Emily Johnson, told Daily Hive in a previous interview.

“Because Loblaw is one of the most prolific grocers in the country, many people have placed most of that frustration onto Loblaws, especially Galen Weston Jr. himself.”

The movement has garnered media and online attention, with hordes of Canadian consumers expressing their support.

@calilopezz UR DONE @LoblawsON #food #costofliving #canada #ontario #groceryshopping #fyp ā™¬ original sound – nxghtxcore.audiosšŸ‘āœØ

@brianjknowler Theres a movement to boycott all Loblaw properties in May picking up steam on Reddit… #loblawsisoutofcontrol #loblaws #pricegouging #boycottloblaws #boycott #corporategreed #canadiangroceries #groceryshopping #canadianbusiness #cdnpoli #enoughisenough ā™¬ original sound – Brian Knowler

However, Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, is not so enthused by it.

Charlebois expressed his views about Loblaw’s public image on social media.

“Despite a year of scrutiny and negative publicity, Loblaw’s stock price has increased by 35% over the past 12 months. This means Galen Weston [Jr.’s] shares are now valued at $3.35 billion more than they were a year ago,” he wrote on X.

“If you want to boycott Loblaw because of price gouging, you should be aiming at other grocers, too, if that’s the logic you’re following,” Charlebois told Daily Hive.

He feels Canadians are better off voicing their concerns to the Competition Bureau “about price fixing, discount fixing, some of the issues that we see with the code of conduct and suppliers, and Loblaw and Walmart just bullying the supply chain.”

“Those are absolutely real problems affecting consumers,” he said.

The academic noted that if consumers stop shopping at Loblaw stores, it could result in competitors raising their prices “because when demand goes up, prices go up.”

Some have responded to Charlebois on social media saying they support the Loblaw boycott but think other grocers should also be targeted for their high prices.

While the effects of May’s Loblaw boycott have yet to be seen, some Canadians, like Ann D of Toronto, have already stopped buying from the company’s stores.

In a previous interview with Daily Hive, D said she has opted to shop at smaller, independently owned stores instead and has seen her grocery bill shrink “significantly.”

The “Loblaws Is Out Of Control” subreddit hosts a list of Loblaw-owned stories and its subsidiaries to avoid and province-specific alternatives to shop at if you are boycotting.

Loblaw has not responded to news of the May boycott but did release a statement this week claiming that it’s “making efforts to lower food inflation.

Members of the Loblaws Is Out of Control group are asking the company to reduce its prices by 15% and remove “member-only pricing,” where customers are forced to sign up for a PC Optimum card to access deals and sales.

However, Johnson told Daily Hive that their biggest goal is to make it clear that as consumers, they “do have the power” and “want to be taken seriously…we don’t want to tolerate monopolies in Canada anymore.”

With files from Isabelle Docto and Imaan Sheikh.Ā 

National Trending StaffNational Trending Staff

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