(Toronto) An observer of the phenomenon of competition in Canadian retail trade believes that Loblaw’s decision to reduce discounts offered on foods whose expiration dates are approaching is a normal practice in the industry and not a sign of collusion .
Earlier this week, Loblaw, Canada’s largest grocery retailer, announced that it would no longer offer discounts of up to 50% on these items, but would instead reduce them by 30% at all areas. Loblaw notably owns the Maxi and Provigo banners.
In a letter to Competition Commissioner Matthew Boswell on Tuesday, New Democratic Party (NDP) MP Alistair MacGregor called for an investigation into possible anti-competitive practices or collusion in the food retail sector.
MP MacGregor, who represents the riding of Cowichan—Malahat—Langford, in British Columbia, believes that Loblaw’s comments, which explained that it had changed discounts to align with those of its competitors, are a source of suspicion.
But Michael Osborne, chair of the Canadian competition group at law firm Cozen O’Connor, says it’s normal in the retail sector for companies to look at each other’s practices and make their own changes in the process. aim to compete.
Metro, which also owns the Super C and Richelieu banners, notably, recalled on Tuesday that it was reducing by up to 30% items that had almost expired for more than two decades.
Companies mentioned in this report: Loblaw (TSX: L), Metro (TSX: MRU)