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For thousands of Canadians, their relationship with Loblaws has reached the breaking point.
Driving the news: A month-long boycott of Loblaw-owned stores is set to begin tomorrow as fed-up shoppers protest stubbornly exorbitant prices at the nation's largest grocer.
- It’s unclear how many people may join the boycott, but the idea originated from the Reddit page r/loblawsisoutofcontrol, which now has over 58,000 members.
- The page has a list of demands for Loblaw, like reducing prices, signing the Grocery Code of Conduct, identifying shrinkflation, and capping prices on essential goods.
Why it matters: For a corporation like Loblaw, a one-month grassroots protest like this is unlikely to have a significant impact on its bottom line. But the fact that it's happening at all shows that Loblaw, which has become the perceived face of greed in Canada’s grocery sector, has a serious PR problem.
- Loblaw is an easy target for public vitriol due to its wide profit margins, shady history, unpopular policies, and the notoriety of its founding dynasty, the uber-rich Westons.
Zoom out: Negative public sentiment is also evident in the rise of novelty anti-Loblaw merch. There’s a non-zero chance you’ve seen someone rocking a tote bag with Galen Weston Jr.’s face that reads “STARVE” or wearing a T-shirt with a “Roblaw$” logo.
- Posters have also popped up across Toronto promoting the “first annual Steal From Loblaws Day” on May 12, a protest that Loblaw called “dangerous and irresponsible.”
Yes, but: Some of this hate might be misplaced. Multiple studies suggest that rising costs from suppliers, not rising profit margins for grocers like Loblaw, may be the main driver of food inflation.
Bottom line: While food inflation is trending down, high prices are still a major problem for many. Food bank usage sits at record highs, and new research suggests that prices have caused more Canadians to eat potentially unsafe food so as not to throw stuff out.—QH