Canadian grocery store profits will exceed $6 billion in 2023, according to an estimate by the Future of Work Centre. This will be a new record and an 8% increase over the previous year.

This new study claims that grocery stores have doubled their profits compared to the pre-pandemic threshold.

Chief economist at the Future of Work Centre, Jim Stanford, is scheduled to present his report findings later today Monday at a House of Commons Agriculture Committee meeting on food price stability.

The report cites data from Statistics Canada, which indicates that the net profit margin for food and beverage retail has consistently exceeded 3% of total revenue since mid-2021. This is more than double the average margin between 2015 and 2019.

Stanford also said in a press release that the data shows retailers took advantage of the pandemic and its consequences to increase profits.

Metro's president and CEO, Eric La Fleche, is expected to give a presentation during the first half of the committee meeting.

Last week, executives from Loblaw, Walmart Canada, and Empire appeared before the committee, where Canada's major grocery stores are under pressure from the federal government to adopt plans to stabilize food prices. Earlier this fall, the government summoned the heads of the five largest food companies to present their plans.

Grocers are also under pressure to comply with the Grocery Code of Conduct, which is near completion. Its supporters say it will help level the playing field between suppliers and major retailers.

For his part, federal Agriculture Minister Lawrence MacAulay said on Thursday that he and his regional counterparts, as well as federal Industry Minister François-Philippe Champagne, will meet to discuss available options for provincial and federal governments if major grocers do not sign the code.

Loblaw CEO Galen Weston told parliamentarians that the company fears some provisions of the law will increase the grocery bill because they grant too much bargaining power to large multinational food producers.

He also said his company will sign the code, but not in its current form.

Walmart Canada president and CEO Gonzalo Gebara responded to parliamentarians that the company is currently unable to commit to respecting the code. He said the current version includes provisions that create bureaucracy and costs, costs that will inevitably impact sales prices.