Loblaw announces price freeze on its No Name brand products

Loblaw has announced a price freeze on its’ No Name brand products. The decision comes as inflation rates remain high above national expectations.

Shoppers can expect to see prices of the famous yellow and black packaged items to stay where they are until January 31st next year, as double-digit food inflation skyrockets grocery bills.

In a letter shared with customers, Loblaw chairman Galen Weston says the move was to “hit the brakes on food inflation,” Weston added that the average cart of groceries is up 10 per cent this year and items like apples, soup, and chips are even higher.

Canada’s number one grocer is freezing the prices of more than 1,500 items found on shopping aisles.

Professor of food distribution and policy at Dalhousie University Sylvain Charlebois says the move was needed because nearly 80 per cent of Canadians feel major chains have been profiteering while inflation spikes.

The Bank of Canada released new business surveys saying consumers are more pessimistic about inflation in the short run as inflation remains well above the banks’ two per cent target.

Economist with Canadian Centre for Policy Alternatives, David MacDonald says major chains in Canada thrived this year, “net pre-tax profits amounted to $1.4 billion in the period of April through June of 2022, that same period, the companies made half that in 2019.”

“I think the pressure is on other chains now to justify how they’re making profits without price freezes, I mean this was a trend internationally, and now it’s arrived in Canada,” MacDonald said.

Independent grocers like Marketbox in Hamilton also took notice of the price halt. Marketbox says, “for our brand, it makes us want to be a little more creative with our local vendors, our price increases haven’t been that dramatic because of those relationships.”

CHCH News reached out to Metro, Sobeys, and Walmart today. Metro replied saying, “it is an industry practice to have a price freeze from November 1 to February 5 for all private label and national brand grocery products and this will be the case in all of the Metro banners (in Ontario, Metro, Food Basics, Adonis).”