In light of the unprecedented increases in food prices affecting the purchasing power of Canadians, who feel they are being robbed by big-box stores, grocery sellers like Loblaws are dealing with similar issues of their own.

The company that owns and operates Loblaws and Shoppers Drug Mart has blamed professional thieves for the decline in overall retail margins for food and drugs, following an increase in thefts from the grocery chain, which could impact the company's second-quarter profits.

A statement from the company in its latest earnings update noted that the company faced doubled increases in supplier costs, which have not been fully passed on to consumers, pointing out that the issues caused by stolen items cannot be ignored, which can include large quantities of cosmetics, perfumes, and baby formula, in addition to carts filled with thousands of dollars worth of products that are pushed right out the front door.

It is also worth noting that, overall, Loblaw companies reported incredible profits in April, May, and June, with revenues rising by almost 7% to reach $13,738 million, while sales at Loblaws rose by 6.1%, and increased by 5.7% at Shoppers Drug Mart.

For his part, a spokesperson for Loblaw Public Relations said in an email: “There has been a significant increase in high-value thefts from retail stores in recent years,” and described it as organized crime, focusing on stolen products to be resold through online markets.

In the face of this phenomenon, Loblaws and Shoppers Drug Mart have taken some measures, such as adding locked cabinets, time delay safes, and security gates, while maintaining a welcoming and comfortable customer experience.

The news of this organized crime problem comes in one of the largest grocery chains in Canada after several tumultuous months for Loblaws, where the store and its outgoing president and CEO Galen Weston Jr. received an incredible amount of backlash over rising grocery prices nationwide.

In June, a report from the Canadian Competition Bureau stated that more competition in the grocery sector is needed to lower these prices, adding that the industry is currently dominated by Canadian grocery giants.

The report identified Loblaws as the largest giant compared to all, having achieved astounding profits of $1,994,000,000 in 2022.

While experts noted that Loblaws' story about this organized crime problem could be a tactic to divert customers' attention from the ongoing conversation about rising grocery prices.