Canadian Subreddit Plans Boycott of Loblaw to Combat Rising Grocery Prices

A community on the subreddit platform with 28,000 members has initiated a plan to boycott Loblaw-owned businesses throughout the month of May. The aim is to push the grocery giant to decrease the escalating costs of groceries in Canada.

The online community, known as r/CanadianGroceryRage, has organized this movement to avoid purchasing products from any Loblaw or its affiliated stores until notable reductions in prices are implemented. Their primary demands include a 15 per cent decrease in grocery costs and the removal of member-only pricing requirements for customers to access sale prices by signing up for a PC Optimum card.

In the final quarter of 2023, Loblaw reported revenues of $14.531 million, accompanied by a two per cent rise in same-store sales within its food retail division.

By the conclusion of the previous year, a report projected an estimated 2.5 per cent to 4.5 per cent increase in overall food prices in 2024, marking a lower growth rate compared to 2023. The anticipated average spending for a family of four on food in 2024 was projected to be nearly $16,300, potentially escalating by up to $701.79 from the previous year, with significant boosts ranging from five to seven per cent in bakery, meat, and vegetable categories.

An analysis also highlighted a decline in consumer trust towards food industry companies. There was a prevalent notion that grocery retailers were excessively profiting and taking advantage of inflationary trends through price gouging practices, as depicted in numerous media narratives.

Conversely, a degree of stability in food prices is expected to return, presenting a more optimistic consumer outlook for 2024. Stuart Smyth, the chair of agri-food innovation and sustainability enhancement at the University of Saskatchewan, expressed hope for a decrease in the common occurrence of ‘sticker shock’ in grocery stores this year.

Despite potential improvements in food pricing, food banks are witnessing unprecedented spikes in usage rates and are struggling to meet the heightened demands of their clientele. According to a study by Second Harvest, there is an anticipated 18 per cent nationwide surge in food bank demands in 2024, necessitating additional funding of $76,000 per charity to address community requirements.

Now Toronto reached out to Loblaw for comments, but responses were not received by the time of publication.