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Published: October 12, 2023
The major grocery stores in Canada have not yet confirmed whether they are committed to providing special promotional offers to stabilize grocery prices, as the federal government recently promised.
Last week, Industry Minister François-Philippe Champagne announced that grocers provided preliminary plans to stabilize prices, which include discounts, price freezes, and price-matching campaigns.
The Canadian press reached out to grocery stores – Loblaw, Empire, Metro, Walmart, and Costco – to confirm exactly what each of them promised to do.
Metro declined to comment, while Loblaw, Empire, and Costco did not respond to requests for information.
In a written response, a spokesperson for Walmart Canada stated that the company plans to continue offering "Everyday Low Prices," indicating Walmart's strategy of providing low prices on a regular basis, not just through promotions.
Stephanie Fusco, Senior Director of Corporate Affairs, said, "Last week, we shared with the government how we will continue to offer everyday low prices to Canadians during these tough times." "We are taking action to combat inflation and keep prices low, and in our report, we also provided several suggestions on the role that government and regulators can play in reducing food price inflation for Canadians."
The federal government also issued an ultimatum to grocery stores in September, stating that they must submit plans to stabilize grocery prices by Thanksgiving or face potential tax measures as a result.
This move came in response to the pressures faced by Canadian families as grocery prices continue to rise rapidly. Grocery prices increased by 6.9 percent in August compared to a year ago. Meanwhile, the overall inflation rate in the country was 4.0 percent.
Recent polls also showed a decline in support for the ruling Liberals as affordability remains a top concern for voters.
Champagne's announcement last week regarding grocers' commitments included few details. The minister did not clarify which products might be subject to special promotional offers, for example.
When pressed by reporters on how Canadians would know that these promotions differ from those regularly offered by grocery stores, Champagne said he did not want to disclose what each company had committed to doing.
On the other hand, New Democratic Party leader Jagmeet Singh criticized the Liberals' approach to grocery prices during a press conference last week, saying that "their plan to ask CEOs nicely to lower prices is ridiculous."
The industry minister has repeatedly pointed to other countries, such as France and the UK, as examples that grocery stores could follow, as countries around the world have been grappling with rising food prices.
In August, the annual food inflation rate was 13.6 percent in the UK and 9.8 percent in the Eurozone.
The French government reached a three-month agreement with major supermarket chains earlier this year to reduce prices on hundreds of staple goods and other foods, which is expected to be extended through the summer.
In the UK, supermarket giant "Asda" announced in June its plans to freeze prices on 500 products until the end of August.
Other European countries have also imposed controls on basic food prices. Hungary, for example, set maximum price limits on products like eggs and potatoes last year.
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