July 14th, 2024

Loblaw’s reduced discounts match competitors while retaining higher margin: experts

By The Canadian Press on January 16, 2024.

Experts say grocer chain Loblaw's decision to reduce discounts on soon-to-expire items is a move to match its competitors. The Loblaws flagship location on Carlton Street in Toronto on Thursday May 2, 2013.THE CANADIAN PRESS/Aaron Vincent Elkaim

Experts say Loblaw’s decision to reduce steep discounts on soon-to-expire food is a move to match its competitors.

Loblaw Cos. Ltd. was previously offering discounts of up to 50 per cent on items nearing expiry but has now moved to lower its range to between 30 and 50 per cent.

Lisa Hutcheson, a retail analyst at J.C. Williams Groups, says the shift is in line with competitors offering similar discounts in a 30-to-50 per cent window on items nearing expiry.

She says demand for discounted food items nearing expiry has gone up, giving more wiggle room to grocers to sell items at a lowered discount rate.

Hutcheson says the changes could affect shoppers who were relying on deeper discounts to keep their grocery bills low amid high inflation.

Metro Inc. spokesperson Stephanie Bonk says the grocer offers discounts of up to 30 per cent on items nearing expiry or on food sold through rescue apps such as Too Good To Go.

This report by The Canadian Press was first published Jan. 16, 2024.

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