“Missed opportunity”: Loblaw boycott would not target the right problem

“Missed opportunity”: Loblaw boycott would not target the right problem
“Missed opportunity”: Loblaw boycott would not target the right problem

The boycott launched for the month of May against the prices displayed at Loblaw and its banners would not focus on the right problem, believes Sylvain Charlebois, specialist in the agri-food industry at Dalhousie University.

• Read also: Quebecers furious with Loblaw will boycott Provigo and Maxi

“I find that the boycott is a missed opportunity,” said the expert in an interview with LCN on Thursday.

If he recognizes that there is indeed a problem in this industry, it would rather concern abuse upstream of the chain and not in grocery stores and stores.

“Loblaw and Walmart are abusing their authority within the chain by putting a lot of pressure on suppliers to increase their own margins,” he explained.

“It’s a shame that the boycott did not take advantage of the opportunity to educate consumers about the current problems in the industry,” added Mr. Charlebois.

Margins in pharmacies

“We can perhaps accuse Loblaw of taking advantage of the situation by selling Chanel number 5 which is too expensive, but when it comes to sandwiches, sauces and pasta, it is less clear,” underlined the specialist.

Loblaw owns banners like Maxi and Provigo, but also Pharmaprix, which would be much more responsible for the company’s profits.

“When we look at the financial statements published yesterday, we see that Pharmaprix is ​​really the bank at Loblaw. We sell perfumes, we sell cosmetics, medicines too, and the margins are really important,” he analyzed.

The expert also recalled that prices are starting to decrease in the food sector, in particular because Canadians are paying more attention to their budget.

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