Canadians are angry with their biggest supermarket
Rising food prices in Canada are fueling anger at major grocery chains like Loblaw, with some accusing them of profiteering while others point to thin but slightly increased profit margins and broader inflationary pressures. Commenters argue over who is really to blame—federal policies on taxes, supply‑managed dairy and poultry, immigration, and weak competition enforcement, or corporate consolidation and buyouts that limit consumer choice. The debate highlights how structural factors, political incentives, and market concentration intersect to keep grocery costs high despite only modest gains in supermarket profitability.
Political blame and public anger
- Some argue the NDP and an unpopular federal government are scapegoating big grocers like Loblaw for inflation to deflect from higher taxes, regulation, and carbon costs on truckers and farmers.
- Others insist public frustration with Loblaw is real (mockery of “price freezes,” boycott subreddit, “gouging” sentiment).
- There’s disagreement on the scale of the anger: some see it as broad-based, others as mostly an NDP/Reddit phenomenon with little effect on shopping behavior.
Competition, foreign entrants, and market structure
- Canada is described as hard for foreign (and even domestic) entrants: Target’s $5.4B failure, struggling independent telcos, failed restaurant–to–grocer pivots, and general risk aversion.
- Counterpoint: Walmart’s success shows foreign chains can win; Target’s failure is blamed on poor execution, bad inventory systems, and timing (weaker middle class).
- Telecom discussion: some say consumers are overly loyal to Bell/Rogers; others say alternative networks’ poor coverage and regulatory failure are the true issue.
Grocery prices, profits, and “greedflation”
- One side: 3–4% net margins are typical and not “gouging”; record profits follow from inflation and volume, not higher margins.
- Other side: margins have risen from ~1.x% to ~3%, so profits are growing faster than sales; a rising stock price implies better returns funded by consumers.
- Disagreement over whether Loblaw’s profit growth reflects efficiency and volume (e.g., people eating out less) or pricing power.
Immigration, austerity, and macro factors
- Some blame high immigration for increased demand and rising prices, calling Liberal policy “reckless.”
- Others dismiss this as knee-jerk politicization.
- Skepticism that Conservatives would meaningfully cut immigration; fears they would instead impose UK-style austerity, worsening social conditions.
Supply management in dairy and poultry
- Canada’s supply management and quotas for dairy/poultry are called an “elephant in the room” that keeps prices high and constrains supply.
- Politicians are portrayed as protecting the system, especially due to Quebec farmers.
- Counterpoint: milk/egg prices haven’t spiked as much as snacks; some value avoiding hormone-treated milk.
Ethnic and independent grocers
- Question raised: if Canada is multicultural, why not more cheap ethnic chains?
- Replies: many small/medium ethnic grocers exist but aren’t national; sourcing staples at scale is hard, and big chains sometimes buy competitors.
- Population density and geography are cited as constraints, though much of Canada’s population clusters near the US border.
International price comparisons
- UK Tesco appearing cheaper than Loblaw/Walmart is questioned.
- Issues cited: different package sizes (e.g., butter), geographic scale and logistics (remote areas vs compact UK), and need for city-to-city comparisons (Toronto/London/NYC) rather than national averages.