Industry Minister Francois-Philippe Champagne Urges Canadian Grocers for Transparency in Stabilizing Prices
Industry Minister Francois-Philippe Champagne is encouraging Canadian grocers to be more open about their plans to stabilize prices. In early October, Champagne announced that major Canadian grocers, including Loblaw, Metro, Empire, Walmart, and Costco, had submitted initial plans to the federal government on how they will tackle high inflation and stabilize prices. The Liberal government demanded that these companies present a plan by Thanksgiving or face potential tax measures.
During the announcement on October 5th, Champagne mentioned that the plans included discounts, price freezes, and price-matching campaigns, but did not provide many details as he wanted the grocers to compete with each other. However, in a recent interview with The Canadian Press, Champagne expressed his desire for more transparency from the grocers.
Champagne stated, “I wish they would be more forthcoming. They’ve outlined to us the kind of things they intend to do, but historically, they have been hesitant about revealing their plans in advance. They say, ‘We’re going to tell the market when we do it,’ but they have concerns about disclosing their plans beforehand.”
The Canadian Press reached out to the grocers last week to request more details about their commitments to the federal government. Loblaw and Costco did not respond, Metro declined to comment, and Walmart stated that they would continue offering everyday low prices, their strategy of providing low prices regularly rather than just during promotions.
Empire’s spokesperson, Karen White-Boswell, explained that Sobeys, which is owned by Empire, will not disclose its plan due to competitive reasons. She said, “Our plans are competitively sensitive, and we do not plan to discuss them before they are launched in our stores.”
This approach differs from similar situations in Europe, where supermarket chains in the UK and France have disclosed plans for price freezes and discounts. Champagne has often highlighted these countries as examples for Canada to follow but acknowledged that Canadian grocers are not accustomed to government intervention.
The decision to pressure grocers to address rising prices was part of a broader set of measures announced by Prime Minister Justin Trudeau following a Liberal caucus retreat in September. Trudeau aimed to address affordability and housing concerns raised by Canadians. Champagne stated, “During the summer, we listened to Canadians and realized that their main concerns were housing and affordability.”
This initiative aims to take immediate action on people’s financial anxieties. However, Champagne acknowledged that creating competition in the market is the long-term solution to high grocery prices. He mentioned that three large grocers control more than 60% of the market in Canada, and increasing competition is the best way to stabilize prices over time.
The Liberal government has also introduced legislation to make changes to the country’s competition law. These changes would empower the Competition Bureau to address anti-competitive collaborations, such as real estate agreements that restrict competitors from opening nearby. Champagne assured that the reform of the Competition Act will take place, but did not provide a timeline.
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