"Read the room": Loblaw under fire for scrapping 50% off discount on expiring items
A recent decision by Loblaw to end its 50% off discounts for nearly expired food in its stores isn’t sitting well with Canadians as they continue to struggle with high grocery prices.
Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, told Daily Hive that the grocery giant’s recent move reflects the company’s inability to “read the room properly.”
Loblaw Companies Ltd.– which holds a nearly 30% stake in the country’s grocery industry through its various stores — confirmed that, as of January, it would stop offering its half-off discounts on nearly expired items after rumours started circulating online.
Charlebois was one of the first to question the company publicly about whether or not it would be implementing the change.
Hey @LoblawsON,
Heard a rumour. Starting January 14th, there could be a shift in the discount percentages for food items nearing their expiration date at stores like Zehrs Supermarket (from 50% down to 30%).
Can you kindly confirm if this information is accurate? pic.twitter.com/kBokPzCRhm
— The Food Professor (@FoodProfessor) January 9, 2024
Loblaw said that it would be changing its 50% off offers to only 30% at the register at stores across the country.
“We’ve always offered a range on these types of items from 30-50%, and are now moving toward a more predictable and consistent offering, including more consistency with our competitors,” a representative for Loblaw said in a statement.
“We continue to offer a range of discounts via in-store promotions and flyers, as well as deep discounts on food nearing expiration through the Flashfood app.”
Bad timing Loblaw
The decision comes at a time when the cost of food remains high in Canada. The country’s annual inflation rate increased from 3.1% to 3.4% in December, according to the latest consumer price index report, and the price of groceries rose 4.7% compared to the same period in 2022.
Upon hearing the news, Canadians expressed their continued disappointment towards the grocery giant.
Loblaws reduced the 50% discount on perishable goods to 30%.
Galen, you’d rather throw food out then maintaining affordable FOOD cost for those who depend heavily on these reductions.
— A McGowan (@xdndlifer) January 16, 2024
#Loblaws says we will now sell you our “almost expired food” (whoopee)at only 30% off instead of 50% off more consistently?GEE THANKS. Maybe we won’t buy it for a month or 2&then they will be left w their EXPIRED FOOD to throw out at NO PROFIT. HMM & go back to 50% off.#Fightback
— CDW (@pinkbassist) January 16, 2024
Bye bye loblaws. I have no more incentive to go there. It was on my regular grocery rotation bc of the 50%.
— M (@createtolove08) January 16, 2024
Food waste that will add up in garbage. 50% most items will be cleared out now 30% it will sit and rot. Loblaws did you ever once think about homeless or poverty stricken people. Shame on you.
— Turtle Island/ First Nations (@NationsTurtle) January 16, 2024
Say goodbye to those 50% stickers at Your Independent Grocer. Now we only get 30% off expiring food because Loblaws would rather feed the dumpsters than sell food half priced. pic.twitter.com/4ZJjZL5FoA
— F0XTR0T470 (@F0xtr0t470) January 16, 2024
The company has come under a constant stream of criticism over the past few years for several reasons, including deciding to end price freezes on NoName products, being accused of price gouging, and seeing its profits soar as Canadians continue to face a cost of living crisis.
“I think [Loblaw] really [needs] good PR… I don’t think they need that kind of press, especially right now,” Charlebois remarked.
App won’t have the same impact on discounts
Charlebois added that while the company offers to continue “deep discounts” on its Flashfood app, it isn’t accessible to many folks — like seniors — who prefer shopping for marked-down grocery items in stores.
“You’re buying a picture. You’re not buying an actual product. Then once you show up at the grocery store, you may actually end up buying something you didn’t think you were buying– the product isn’t as fresh as you thought it was,” he noted.
A main concern Charlebois says he has with Loblaw’s decision is its justification for trying to align its discount policies with its competitors.
“In other words, what Loblaw is saying is that people will have access to similar discounts everywhere,” he said.
“And I’m not sure that’s the intent of a free market.”
With files from Becky Robertson