The grocer Metro said Tuesday that it will not accept cost increases from its suppliers over a three-month period, in order to maintain stability in food prices during the holidays.
According to the company, this is a long-standing practice for them, to avoid retail price changes during the busiest time of year. Montreal-based company spokeswoman Marie-Claude Bacon said this applies to Metro’s private labels and national brand products, and extends from 1er November to February 5.
Metro’s comments come as Loblaw Companies announced on Monday that it would freeze prices on all of its No Name-branded products until next year, because double-digit food inflation is spiraling grocery bills. Loblaw said it has frozen prices for the private label, which includes more than 1,500 grocery items, until Jan. 31, 2023.
In the aftermath, in the face of high inflation that is reducing their purchasing power and economic uncertainty, Canadians should reduce their holiday spending this year, says a new report.
In its latest holiday shopping survey, Deloitte Canada says overall holiday spending is expected to drop 17% to $1,520 per household as fears of recession and rising interest rates interest hold back budgets.
The report, which is based on a Leger poll of more than 1,000 Canadians in late August, found that more than a third of respondents expected to start shopping earlier than a year ago.
Retailers seem to be responding by rolling out Christmas-themed products earlier, and some are even advancing their holiday promotions earlier in the fall. Amazon Canada, for example, offered subscribers to its Prime service a special two-day shopping event last week.
Meanwhile, Black Friday—a massive retail event that traditionally marks the start of holiday shopping for many consumers—is increasingly the time when many Canadians plan to end their seasonal spending instead, according to the Deloitte survey. The poll found that 26% of respondents would finish shopping that day, up from 18% last year.