Customers dubious over Loblaw lowering its discount rate on sale items

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The nearly 20% of consumers who regularly purchase “last day of sale” deals at Loblaw stores will be disappointed after Loblaw said it will soon stop offering those items at a 50% discount.

According to Dr. Sylvain Charlebois’ latest column, “consumers will only find products discounted at 30% in all of Loblaw’s owned and operated stores” — a policy that was in effect in some parts of the country but now extended across all its banners.

Loblaw told Dalhousie University’s Agri-Food Analytics Lab that they are “moving towards a more consistent and predictable pricing strategy, aligning ourselves with our competitors,” as well as “offering deep discounts on food nearing expiration through the Flashfood app,” but wary, frustrated shoppers aren’t buying it.

The consensus among Sun readers is that Canada needs more competition as far as grocery retailers go, with some suggesting opening the country up to American and U.K. chains.

While many shoppers will take whatever discount they can get, one reader wrote, “If it’s only 30% I’ll buy the fresher meat,” while another added, “I don’t know why anyone who has other options would ever set foot in a Loblaw or Loblaw-owned store other than to buy items on sale.”

The discount policy is frustrating but even more so are the discounts being cut. Canadians clearly expect and want more from these companies, where the focus should be finding ways to stand out and remain competitive rather than be like the other grocers.

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Charlebois suggested the move could raise suspicion as “another example of how price-fixing or discount-matching practices,” though admitted this goes beyond Loblaw and is an industry-wide concern that needs to be addressed.

Commenters pointed out that Loblaw, Metro and Sobeys pretty much own the sector but one independent Toronto grocery store has taken it upon itself to not only compete against the big stores but show just how much cheaper they are.

Raise the Root in Leslieville recently shared a post on their Instagram account, listing what their produce is priced at versus Loblaws and claiming they are cheaper or the same.

The post by the local family-owned business was loved by those in the community.

“Crazy how a locally owned grocer can blow away Loblaws pricing,” one person commented.

“You’d think with Loblaws’ buying power and volumes they would be able to offer cheaper prices, but I guess it’s all going into their pockets!!”

Another added: “Hope more stores follow the lead! We need a public enquiry in price gouging!”