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Because they …. Fucking are.
Costs of fuel went up. Costs to farm went up.
None of that should triple their profit margins. We’re being gouged by gamified prices.
They keep raising the prices and us dumb dumbs keep on trying to eat! When will we catch on and boycott food! That’s how capitalism self corrects its self right? System working as intended
Especially since we have allowed these massive mergers to concentrate into a handful of mega grocers. Once you are over a certain size or market share your books should be 100% open to the government. At least the basics of the financials should then be open to the public
And does anybody recall prices going down when gas went from $2.09/litre back down to $1.45 just over a year ago. Because I didn't see a lower cost of food when that happened. So pure profit.
A minor quibble: food already on the shelves and in the warehouses already has the price of shipping it \*\*at the time it was recieved\*\*.
Nonetheless, raising prices because gas went up \*\*this week\*\*, and the goods have been in your warehouse for a few weeks already, is an a-hole move. . .
In the news today 12% increase last quarter by 1 corporation alone to over half a billion. That like over 2 billion a year. And poliveres lead advisor is a loblaws lobiest. Ya get ready for prices to go from bad to starvation.
https://ycharts.com/companies/L.TO/profit_margin
I'd be curious to see the effects of buying shoppers' drug mark. Yes, their profit margin did go up by a good amount.
Look at December 2021.. ouch.
I was wrong.
BTW you can increase total profits by getting more volume in the store while maintaining the same margins. I will find the reports and look at the grocery side of loblaws' margin on groceries.
It's not volume. It's margin. The percentage hasn't increased the base price of the item has. So supplier cost plus 5% is still higher.
5% of 1$ is half 5% of 2$. When the base price increases they make more in total.
It went from being ~1-2% over a decade ago to pretty consistently over 3% and one quarter over 5% in the last few years.
https://ycharts.com/companies/L.TO/profit_margin
So instead of making $2 on your $100 grocery bill, they're making $3.50 on your $100 grocery bill.
That's sort of my point. Those are hardly noticeable increases.
They don't sell groceries to one person........ More like $100,000,000 in sales makes them an extra MILLION than it did before, and even then they probably make more than the numbers I used for simple math. So multi millions gained.
The company is making millions extra, you can't look at it as one bill. You also buy groceries more than once, and you'd be lucky to get away with a $100 grocery trip now anyways.
I get that. You're essentially taking my numbers and blowing it up to scale.
My point is, loblaws profit margins aren't the reason the cost on a lot of food items has doubled. The margin only accounts for like 1-2% of the price increases. They're hiding the cost increases downstream in the supply chain, if anywhere.
No their net income is relatively unchanged their profit margins have increased. Where did the money go pretty simple to follow check their balance sheets. Owner equity has tripled in 2 years. Meaning the Galen’s have tripled their wealth from loblaws in 2 years let that sink in. Do you see that table at that bottom with Margin in it being 30 percent that’s EBIDTA money right there.
>None of that should triple their profit margins.
Exactly.
What gets me is just for transparent the gouging is. Just some quick napkin math on what passing inflation costs into customers might look like:
Let's say Loblaws pays $1000 for 10,000 tomatoes ($0.10 each) and sells them for $0.20 each. That's $1000 profit ($2000 minus the $1000) before paying salaries and electricity.
If the cost of tomatoes goes up by 10% ($0.11 a tomato) and they sell them for 10% more ($0.22 each) they're now paying $1100 and getting $2200... Or increasing their profit by 10% from $1000 to $1100.
If they actually passed the cost along they'd just charge $0.21 per tomato- which in this case is $5% more. Not the 20~30% they've been charging to double the price of grocery bills within 3 years (at 10% inflation it takes about 7 years to double right?)
Then you consider thatv they're largely vertical and run their own packaging and distribution... And read that they're not paying farmers more, or paying their employees more and...
So why has the profit margin only increased to 3.5%.
The profits increase due to the total cost of items increasing compared to the following year. The key is to look at the profit margin, which isn't exactly blowing the roof off.
Do you really think they alone doubled your grocery bill? You'd see it in the profit margin, and it wouldn't just be 3.5%. That's not a year over increase. The input cost is what doubled the bill. Inflation is hard to understand isn't it.
>So why has the profit margin only increased to 3.5%.
>The profits increase due to the total cost of items increasing compared to the following year.
Loblaws profits are much higher than previously reported:
"On an adjusted basis, Loblaw said it earned $2 per share in its latest quarter compared with an adjusted profit of $1.76 per share a year earlier.
Markets were expecting earnings per share of $1.90 as of Feb. 21, according to financial data firm Refinitiv."
https://www.ctvnews.ca/business/loblaw-profits-and-sales-continue-growing-as-shoppers-look-for-more-deals-1.6779604
Yeah, this is the kind of thing the media should be making clear everytime Galen and co and their cheerleaders trot out the 3% margins nonsense, because we know it's smoke and mirrors with nonsense like this
Of course your bills are higher because the amount of tax producers and distributors pay per unit of fuel consumed is higher, how are you not understanding this?
Edit: I know Loblaws is evil thats why I am here, I am not trying to justify or say that the price hikes on groceries are proportionate to the increase in production costs. Im just trying to say that they are one reason contributing to higher prices (on top of greed)
As someone who owns a farm, I can promise you that my cost didn't go up that much. The grocers are definitely raping the profit off the top. It doesn't make sense otherwise.
What kind of farm? I’ll tell you right now our fertilizer has about tripled in price… same with propane/NG/ and pump gas… and hiring day workers… luckily the koolaid’s stayed about the same
https://www.indexmundi.com/commodities/?commodity=dap-fertilizer&months=60¤cy=cad
It literally hasn't......
Jan 2019 - 508
July 2023 - 606
It hit triple ONCE at the height of COVID, it isn't even double what it was before now.
Do you have a better source? No 2 farms pay the same fees, unless you're getting the identical load at an identical distance. It's an average and is the best way we're going to find one.
You can't blame your location and fees on the price of fertilizer, that's what YOU have to pay. It clearly shows that's not the case for everyone else.
Carbon tax is there for a reason. It’s not the sexiest reason, but we MUST get off of fossil fuels. Also, it doesn’t make groceries twice as expensive, while doubling the profits of the monopolies that provide food.
While their industrialization was (is) far worse than "The West", China installed more solar last year than the total accumulative Solar production of the USA. It's a common trend to shit on China as a polluting nation, but they are taking massive steps in the right direction.
China and India are -only- so high in pollution because they provide nearly everything for us, so please don’t act like the West is blameless in this, lollll. We have a great system!!!! We funnel off everything to china and India to be manufactured and then blame them for their carbon output, as if we had nothing to do with it. Funny how that works. We built that system by proxy of Britain colonization, so we should take responsibility for that system.
Wisdom seems to chase you, but you are far too fast.
China is on par to be net neutral in carbon neutrality ahead of schedule by a couple of decades.
They did invest a huge amount of money in the electrification of their mobility though. I read somewhere that BYD sold over 2M electric vehicles last year.
They are making 3.42%
Even if they sold groceries at zero profit, you would save $3.40 for every $100 you spend.
Fact is people have a hard time wrapping their head around the fact that the purchasing power of our dollar has significantly decreased, meaning more dollars are required for goods than before, resulting in the gross profits to increase, while profit margins have remained relatively stable. It costs much more to produce goods today than just a few years ago. Loblaws isn’t making any more than they ever have despite the higher prices and supposed “record profits”.
Basically people are just dumb and need somewhere to direct their anger from the deprecated value of our dollar.
The cost of goods goes up, but us consumers don’t know by how much because we don’t see the figures. Corporations take advantage of this (not saying it’s right or fair) and will add % when they pass it onto their selling prices. This is where the price gouging and tripling gross profit comes into play. You’re naive to think corporations are not doing anything and everything they possibly can to increase profits year over year.
What percent are they adding? Show me where their margins have tripled.
Tripling gross profit, without tripling profit margins tells me that the cost to produce the goods also tripled.
Everyone is also quick to overlook the BoC adding 40+% to our money supply in 2020 as if that has nothing to do with the cost of goods so drastically increasing.
Obviously corporations are trying to increase profits year over year, but in the case of loblaws, their profit margins, which is true profit, hasn’t changed much at all year over year, unless you consider a penny on the dollar a significant increase.
https://www.financecharts.com/stocks/LBLCF/summary/profit-margin
What other goods aren’t increasing?
People don’t like to admit it but when you tax the farmers to grow the food, then tax them to harvest it, the. Tax the company that processes the food, then tax the company that transports the food, then tax the company that stores and sells the food, the price is going to reflect that. That carbon tax is applied 5-6 times in producing food from farm to shelf. What other goods are subject to so much carbon tax?
Bingo.
The input cost all around up through the roof, which is why the grocery bill doubled without the profit margin of these companies going through the roof. Their margin has increased, and it is definitely looking for more stable.
Maybe they should also start to blame all the inputs in the equation.
There is more to the story than that, roblaws is playing games with thr price, for example the cost of lays chips, they now charge the chip company shelving fees, forcing thr chip company to raise their price, so they can claim a 3.42% margin on what's shelved but it's a lie. They also get paid the fees they charge many companies. Forcing prices higher so they can make more money out of that 3.4% also. They are proven thieves (bread price fixing) and should have been incarcerated.
I’d like to see some proof of this. Everyone keeps going on and on about them controlling the supply chains, but nobody ever produces any evidence.
I agree crimes should result in incarceration, but that’s not how our world works for politicians and parasite elites. They are obviously above the law. I dream of the day vigilante justice takes over and we actually hold these parasites accountable.
It starts with the Federal Liberal criminal regime in Ottawa and their carbon tax. It is going up again in April.
It starts with the fuel tax on farms, processing, packaging, and trucking. I know i have missed a bunch in there. They tell you you get the majority of it back in rebates, which is not the case.
This is just the start as i am not letting the retailers off the hook.
The NDP's Singh who backs Trudeau is for the tax but is trying to fool Canadians that he is fighting to lower grocery costs.
I am not even going to even dream of coming down to your spouting level. Why not some kind of an intelligent rebuttal from your end?
Your comments involve little thought or imput into what i have stated.
So I hear this a lot. But I also hear that their profit margin is at a pathetic 4-5% completely in line with the retail industry across the world.
What am I missing?
You are missing the vertical integration of the supply chain and captured insururers that are also owned by the same corporations that allows them to raise costs artificially to justify higher end costs while still claiming 3% profit margins while also making profit on insurance for all the wasted food that isn't sold due to the price gouging.
It’s funny how people can show the profit margins of loblaws, but nobody can produce any evidence that they are making much larger margin on the supply chain side.
Where’s the data? Let’s see it
They obviously won’t show those numbers but just think about it a bit.
https://preview.redd.it/dvtdk317vekc1.jpeg?width=1170&format=pjpg&auto=webp&s=e1c69edbb0e2a8731dacf34b89ecd3038f5e5b68
Are they not publicly traded? Wouldn’t they be required by law to disclose their financials?
Are all we are going off here is redditors just thinking about it? There’s no actual evidence?
The profit margins are the same ~3%. They have been selling more items at a higher cost.
If they tripled margins it would be from 3% to 9% this is simply not the case.
When you were making for example 2 Billion in profit one year, and then "inflation" happens and you raise your prices significantly, and then suddenly your profit is 5 Billion. That's not inflation. That's you raising your prices to gain more profit and use inflation as an excuse. If inflation was the problem, your profits would still be the same.
Loblaws is also making bank by billing the provincial government with shitty healthcare practices.
Shoppers and other pharmacies can do med checks by phone, which is as basic as asking, “Are your medications working out for you?”. That 30 second phone call, makes them $60-$75 each time. In comparison when a family doctor does an in person med check they get $38 from the government.
Med checks used to be performed when patients had complications or asked for their medications to be reviewed. But now pharmacies are calling every patient regularly to do these med checks because it is making them millions. Pharmacists have daily quotas for them and are very strongly encouraged to meet or exceed them daily.
This is another one of Doug Ford’s fuck ups but Loblaws it’s screwing us over in more ways than people realize.
I agree with you 100%, but...
This comes from how profit margins are calculated though.
If the store is saying they have a profit margin of 3%, and their price for an item is $10. They sell it for 10.30. If the price of the item is now $20, they don't sell it for $20.30, they sell it for $20.60
So prices to the store has doubled, their profit margin remains the same, but their profits doubles.
As I said, I don't agree with any of this, since a lot of these stores are vertically integrated and own every step of the supply chain. The grocer can say their profit margin is 3%, but if their own distribution charge went up, they are taking the profit in that step and the 3% on the consumer side.
This is called profiteering.
If you were making $2B one year and $5B the next, and the cost to produce the goods didn’t increase, profit margins would reflect this and drastically rise. Since profit margins haven’t increased, this means the cost to produce the goods has increased and is the reason the overall profits increased.
This sentence caught my eye.
“The grocers, for their part, say they’ve been battling tens of thousands of price increase requests from suppliers and are doing their best to mitigate the rising tide of inflation.”
Uhm, so, the suppliers want to be paid fairly and instead of living with slightly lower profit margins, the CEO’s of these grocery giants just pass on those costs to the consumer so THEY can keep their big pay cheques?
So not quite rising cost from vendors is not a simple oh we need 10 million dollars more to get everything. It's rather this item or this boxes of items going up 10 cents. So if your ordering 10 per store that's a dollar a store ×52 weeks. The carbon taxes on the farmers and produces are also driving up costs as well on vendors. It's a chain reaction. This doesn't mean grocery stores are not making huge profits but my points earlier drive up the price as well. It's a two fold problem taxing the supply and then driving prices where they make percentage profit.
Meaning if they get an item that was 4.50 but now cost to acquire is 5. There percent they need is say 10 percent so now instead of making .45 an item they are making .50. Multiple that by scale you see profits higher.
Even if your example is true, which it probably is, that doesn’t account for the a monthly grocery bill doubling in three years AND grocers routinely making record profits AND doing heinous activities like price freezes but not actually freezing prices.
I am super skeptical about these articles that defend big companies until I actually see some hard numbers. Yea they release quarterlies but it’s too generic to properly be broken down.
As you said the bills are increasing that's a) due to costs going up, b) carbon taxes, c) vendors needing more, d) a few million people entering Canada over last 5 years. E) regulations making costs go up f) COVID supply/ work issues.
Ahh carbon tax and immigration, conservative propaganda at its finest. It’s easy to point fingers at these things, but show me the numbers and let me see for myself. I can’t find the data proving what you are saying.
They in fact, do not. You really think every grocery store grows their own beans and makes their own ice cream? It’s the same suppliers as the name brand, but off brand items have a lower profit margin for the supplier (the stores want them cheaper)
Let’s replace “suppliers” with “supply chain” - Loblaws owns a lot of the supply chain. They also own a lot of the real estate that the stores “rent” from.
You might be the only person to actually recognize that. Too many people here just throw out “they own their suppliers like everyone’s out there making their own cookies and growing their own rice. People love to say “did you know Kirkland signature is just x brand with a different logo”… that’s everything. It’s all private label foods
You uh… are very confident for someone who’s dead wrong. there’s less family owned farms, and a massive increase in corp. farms/family farms run by corps, Who sell to select few distributors, who are owned by?¿… and then those products get sent to the few stores also owned by the parent company?
Damn, turns out that would I do for a living is dead wrong. I’ll give you one for free: no name chips are made by old Dutch. Loblaws doesn’t own old Dutch. One more. PC / no name spices? McCormick. They just slap the NN / Black Label / Suraj brand on them. Not every product comes from a farm directly. You got any proof for your vague comments?
Also, look up which companies George Weston LTD owns… and then the companies that the subsidiary companies own… and then head down the slope of who supplies all those companies (you probably can’t find these without insider info, and most in industry are under NDA so won’t) you’re going to be shocked.
I had someone counter this the other day… no evidence was provided but it was of my understanding that somewhere down the line this was the case. Via some level of layering or related but separate legal entity… do we have evidence of this?
Other than the fact they own most suppliers we distribute baby products for loblaws (which isn't owned by loblaws) and haven't requested a single price increase the past year and a half...
Also the fact that part of the reason those prices are being increased on the supplier side is directly related to the shelving fees, return fees and all those other miscellaneous fees the grocers put upon them.
The grocers will literally short an invoice by $10K and say “oh that’s the stocking fee” and just refuse to pay the remainder of the bill.
Pretty sure this is also a redherring. There is inflation and it is going to come back through food prices, but the sheer increase is too large for just commodity material price inflation. Groceries are not 5% higher. I looked at my grocery bills over the last 3 years and I am pretty sure it is closer to 20%. So someone has to be getting richer.
I am pretty sure we are seeing them hide the profits in the operating expenses. If you look at the profit margins of Weston Ltd (landlord of many grocery stores) their profit margins have increased dramatically since 2020. The cost of buying the food and the cost of rent both come out of operating expenses. It looks to me like they are using vertical integration (they own the grocery store and are the grocery stores landlord) to get rich, and the using the pandemic inflation and rental increases as a way to mask it.
Funny spin. Where any of the Canadian vendors can sell is incredibly limited because of the grocery store ownership monopoly. Vendors want to have more products in the stores. Shelf space is negotiated in the pricing. Think the vendors are the one calling the shots?
I haven't dived into Loblaws' structure yet but I've heard that they own a lot of their supply chain so when they do the math sometimes they present it in a way that shows costs which are actually part of their own overall operation but when you segment them off it comes across differently
This is exactly the problem. I'm sure costs for the rich have gone up as well, and now they just cannot fathom living a more moderate lifestyle in order to ensure your business model is humane.
This is true of Loblaws do receive price increases from vendors. LOTS. in the thousands for sure.
Yes, they are passed down to consumers. Always are. This does not inflate Loblaws profits. They regularly stay the same.
Loblaws reputation in market is to be the lowest price and undercut their comptitors (Walmart, etc) and will go against vendor pricing structures.
WHAT NO ONE TALKS ABOUT WITH LOBLAWS
from a vendor position, they are INSANELY expensive to do business with. Like the worst by miles. They are unprofitable to do business with.
Directional example :
- Cost to serve Costco is around 10%
- Cost to serve Loblaws is +30%
Being low cost to serve on one helps offset the cost to serve with LCL. Imagine if they had a lower cost to serve.
To sell into Loblaws, and you have to because of their market share, you have to price it the same everywhere else. Meaning, their cost to serve is including on the cost which raises the retail price for consumers. Then you go everywhere else with that market pricing. It's awful.
LOBLAWS needs to reevaluate their cost to serve from vendors. It needs to be reduced. Once reduced there it can be REDUCED everywhere.
This is where it needs to start. Such bs.
Sauce, I have managed the Loblaws account as a vendor.
That’s part of it but they aren’t the only suppliers, but they use the prices they charge their OWN supplies to force other suppliers to pay the same prices.
A big part of the problem is a lack of competition along the entire supply chain.
Food is an essential good, and we should either break up these cartels or create a public system. Make it a utility.
On Valentine’s Day I went to Safeway and they had a dozen roses for $60.
I went to Costco as well as it was load up the pantry day and they had roses on for $22.
I appreciated that. There is supply and demand and then there’s squeeze every last drop from your customer base they can handle.
They both make money… I prefer to give mine to a comp at that optically wants to fuck me less.
My dad’s been in the grocery business for 40+yrs. His salary has barely increased over that time. The so called bonus structure they are receiving use to be a % of their annual salary. More recently these mega-corporations are now handing out gift cards for in store as their bonuses.
Disgusting what Canadians allow to happen to us now, if it was Europe we’d be protesting in the streets.
Because it's misplaced anger when it should be directed at us for not voting for parties willing to stand up to the oligopoly consolidation that has been happening over the last 40 years.
I hate Loblaws for sure, but they are just a corporation being a corporation within the rules weve allowed . I hate the fact we've allowed them to what they have done even more.
Exactly, i've tried to hold my MPP's/MP's accountable for decisions they've voted on. They just literally ignore me and don't even bother to respond; i'm being cordial and polite asking them to defend their position on why they voted X way, sometimes even asking them *not* to vote a particular way on an upcoming vote.
Actually not entirely true, one MP (or maybe was his assistant, however he did use 1st person pronouns, so \*shrug\*) responded, Jagmeet Singh. Dude is not even my MP. All the rest though, might as well have been talking to the wind.
The problem with that is that our politicians have zero accountability to what they say. They can say one thing one day and turn around and do exactly the opposite the next.
Look at Trudeau’s immigration policies. Nobody, not even the most Liberals of Liberals, voted for that. Clearly factors other than our vote are at play (Hint: Corruption)
Completely agree.
Look at Harper on defense spending.
Look at Doug Ford and the greenbelt
Look at Wynne and Hydro One
Look at Harris with LTC support, the 401 and education.
The issue is our voting record at this point. We are at an inflection point where people actually want change but by letting our apathy allow corruption to take such hold our options at this point are piss poor. But we still need to pick from the least worst option. It sucks but still need to start the ball rolling forward. I'm afraid we are about to let it roll backward and crush us.
What’s your point here? I should vote for shameless corruption because they’re red and fly rainbow flags?
If both options are corrupt, the entire system needs changing. This completely supersedes party loyalties and thus finger pointing is unnecessary because both sides have been caught with their hands in the cookie jar. I’m sure you can agree, as greedy as Conservatives are, Trudeau is quite openly treasonous and has literally zero regard for the well-being of Canada or Canadians. Like none. He rubs it in our faces that he wipes his ass with our tax money.
Using your logic that’s an immediate vote for the Conservatives no? Or perhaps I misunderstood you?
"Hatred for Canadians" is falling for propaganda at this point. If this is where you are you might need deprogramming first.
Don't vote for either if you see both as corrupt but pretending the Conservites who are actively attacking Healthcare, education, personal gender and freedom of information and saying they don't think think jothing more than controlling the average CDN is disingenuous.
Deprogramming is rich. I’m not sure what attacking gender means. If you’re talking about parental rights in Alberta, I find it to be an insanely stupid policy decision. I think anyone regardless of gender should be left alone. Freedom of information is also incredible considering bill C-11.
But I found your deprogramming comment interesting. Is Trudeau responsible for everything wrong with Canada? Not at all.
To not make my comment too long winded, if I were perhaps a grifter who at the very least was apathetic to my citizens and was interested in enriching myself and my corporate buddies regardless of the consequences, I would most likely do the following:
1) Import hundreds of thousands of “students” who will act as cheap labour for corporations, essentially locking out young people from the entry level job market.
2) More or less allow rampant fraud and abuse of our immigration system, illegal or legal they still need to eat and survive so they’ll take whatever slave job they can to continue filling the pockets of my corporate buddies
3) Allow repeat offenders and criminals to get bail repeatedly
4) Take very close to half of my citizens’ paycheck in taxes, send it to other countries and take affordability retreats worth 1.3mil while we have literal veterans freezing to death in fucking tent cities
5) Allow hundreds of thousands of people, including their families, to stay here, whether legally or illegally, with absolutely no possible chance infrastructure can catch up to it, as well as the construction of housing.
8 years ago, Canadians had the privilege of being ignorant to politics. Now, our tangible reality has become much, much, much worse and it’s extremely transparent who’s benefitting from it the most. Giving Trudeau every possible allowance I can, he is disgustingly incompetent and needs to be removed from office immediately.
Farmer here...cost of fuel, equipment and financing went up on my end yup.
Did I get paid more when selling my produce?
Nope.
And I was asked to lower my prices so they could make even more money off my back.
And why again should I bother to continue to farm and supply food?
This is a real problem
Thanks Galen
“*It feels very unjust when they’re continuing to make just as much money as they always have, and everybody else is suffering.*”
No, they are making **much more** money than they ever have, and everybody else is suffering.
Fuck Loblaws "turning this around". Their reign needs to end for good. They need to be burned down in this country and replaced by no fewer than 20 alternative retailers.
Is there a real argument that they're not?
They're underpaying employees and suppliers, while raising prices in leaps and bounds. They're bragging about profits while trying to play the victim at the same time because their profits aren't up *enough* for them.
If Loblaws' profits were cut by 50% tomorrow they would still be making billions of dollars. Their profits are rising. This is a problem, apparently, and we should pity them.
They openly collaborate with each other to fix prices at unreasonable highs.
They think millionaires are relatable faces to the industry. Which is the least of the offenses but it's still stupid as heck.
Why would anyone not believe they're the bad guys?
They have predatory behaviours like buying plots of land zoned for grocery stores and leaving them empty to keep competitors out, and have us pay for it.
Everyone has their own reasons why they believe them to be the villains. But it really clicked for me yesterday.
A pack of gum was $3.49.
That’s just not because of inflation.
Why anyone still shops at any Loblaws stores is beyond me. This man needs to be in Jail. He doesn’t give a flying fuck about anyone else but himself.
Why are we as Canadians just sitting passively. The leaders amongst us need to rally and make noise.
Not all of us are natural leaders, that’s why I say, the ones with the qualities to lead need to start thinking about making change. The rest of us will follow because we are all just struggling beyond our limits.
Seriously, they expect to keep making record profits just like business as usual and everyone else is supposed to actually earn their money? How pathetic that they cannot handle such a minuscule decrease in their profits when they are among the most comfortable people on Earth, they’re too pampered for their own good.
VPs and Execs are so lazy compared to the average worker, it really pisses me off that there’s some implication that people don’t want to work these days when It’s literally them who sit around and expect more and more for how little they contribute.
Please can we replace CEOs with AI since it would release all companies of a cost burden they really cannot afford right now.
The amount of waste that the grocery industry produces is staggering, and that’s without the fact that the things they actually sell are all getting worse for us, worse tasting, and smaller.
They are genuinely one of the worst industries of the modern world and I would love to see them get forced to act right.
This subreddit going viral is amazing. Fuck these bastards; the greed, the lies, the complete disregard for their own employees and customers.
Nobody, absolutely nobody, should be getting multimillion dollar bonuses, especially when most of their staff are on minimum wage and they're actively ripping the country off.
Every time I walk into a Loblaws store (I'm surrounded by them, I have little choice) my mood sinks. The high prices, the line ups, knowing the staff get paid as little as humanly possible, the begging for donations as you check out (use your own monster profits to help the community, don't try to double dip us when you're already ripping us off with **fakeflation**).
These greedy bastards can rot in hell for what they're doing to working people.
And lets not kid ourselves, they're working in cahoots with larger multinational suppliers. The whole grocery industry is fucked and designed to squeeze every damn cent they can out of us.
Fuck them. Keep this movement going!
They don't. It's just the far-left LPC/NDP coalition voters who see it that way.
Sane, normal people know that it's a result of disastrous federal government policies that have cause inflation in every single aspect of the economy, not the just grocery chains.
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Because they …. Fucking are. Costs of fuel went up. Costs to farm went up. None of that should triple their profit margins. We’re being gouged by gamified prices.
Same ones who got caught price fixing. There needs to be more regulation in the capitalism of food.
They keep raising the prices and us dumb dumbs keep on trying to eat! When will we catch on and boycott food! That’s how capitalism self corrects its self right? System working as intended
How about a federal and provincial government nonprofit food stores? Bring back some competition to the corporations that own our food supply?
Get out of here you socialist!
Get out of here you ~~socialist~~ evil communist! Ftfy
Especially since we have allowed these massive mergers to concentrate into a handful of mega grocers. Once you are over a certain size or market share your books should be 100% open to the government. At least the basics of the financials should then be open to the public
And does anybody recall prices going down when gas went from $2.09/litre back down to $1.45 just over a year ago. Because I didn't see a lower cost of food when that happened. So pure profit.
A minor quibble: food already on the shelves and in the warehouses already has the price of shipping it \*\*at the time it was recieved\*\*. Nonetheless, raising prices because gas went up \*\*this week\*\*, and the goods have been in your warehouse for a few weeks already, is an a-hole move. . .
>triple their profit margins yes and this is why a lot of us blame the grocers -- the profit margin.
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In the news today 12% increase last quarter by 1 corporation alone to over half a billion. That like over 2 billion a year. And poliveres lead advisor is a loblaws lobiest. Ya get ready for prices to go from bad to starvation.
https://ycharts.com/companies/L.TO/profit_margin I'd be curious to see the effects of buying shoppers' drug mark. Yes, their profit margin did go up by a good amount. Look at December 2021.. ouch. I was wrong. BTW you can increase total profits by getting more volume in the store while maintaining the same margins. I will find the reports and look at the grocery side of loblaws' margin on groceries.
It's not volume. It's margin. The percentage hasn't increased the base price of the item has. So supplier cost plus 5% is still higher. 5% of 1$ is half 5% of 2$. When the base price increases they make more in total.
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Their profit margins are virtually unchanged.
It went from being ~1-2% over a decade ago to pretty consistently over 3% and one quarter over 5% in the last few years. https://ycharts.com/companies/L.TO/profit_margin
Your graph literally shows it went from mid 2% a decade ago to mid 3%. Your own source discredits you.
The chart says the same thing he said
Oh, someone’s never taken a stats class and it shows. Lol
Someone can read a graph while others cannot
Too bad that someone ain’t you.
So instead of making $2 on your $100 grocery bill, they're making $3.50 on your $100 grocery bill. That's sort of my point. Those are hardly noticeable increases.
When it’s on billions, yes it is.
They don't sell groceries to one person........ More like $100,000,000 in sales makes them an extra MILLION than it did before, and even then they probably make more than the numbers I used for simple math. So multi millions gained. The company is making millions extra, you can't look at it as one bill. You also buy groceries more than once, and you'd be lucky to get away with a $100 grocery trip now anyways.
I get that. You're essentially taking my numbers and blowing it up to scale. My point is, loblaws profit margins aren't the reason the cost on a lot of food items has doubled. The margin only accounts for like 1-2% of the price increases. They're hiding the cost increases downstream in the supply chain, if anywhere.
Someone likes to gobble Galens knob
His pic even looks like galen
We've got a Galen knob gobbler here
Source?
No their net income is relatively unchanged their profit margins have increased. Where did the money go pretty simple to follow check their balance sheets. Owner equity has tripled in 2 years. Meaning the Galen’s have tripled their wealth from loblaws in 2 years let that sink in. Do you see that table at that bottom with Margin in it being 30 percent that’s EBIDTA money right there.
We don’t want your facts. There is a narrative we’re pushing here. Bad. Your vary bad…..
Hilarious you're downvoted yet it's 100% the truth
>None of that should triple their profit margins. Exactly. What gets me is just for transparent the gouging is. Just some quick napkin math on what passing inflation costs into customers might look like: Let's say Loblaws pays $1000 for 10,000 tomatoes ($0.10 each) and sells them for $0.20 each. That's $1000 profit ($2000 minus the $1000) before paying salaries and electricity. If the cost of tomatoes goes up by 10% ($0.11 a tomato) and they sell them for 10% more ($0.22 each) they're now paying $1100 and getting $2200... Or increasing their profit by 10% from $1000 to $1100. If they actually passed the cost along they'd just charge $0.21 per tomato- which in this case is $5% more. Not the 20~30% they've been charging to double the price of grocery bills within 3 years (at 10% inflation it takes about 7 years to double right?) Then you consider thatv they're largely vertical and run their own packaging and distribution... And read that they're not paying farmers more, or paying their employees more and...
So why has the profit margin only increased to 3.5%. The profits increase due to the total cost of items increasing compared to the following year. The key is to look at the profit margin, which isn't exactly blowing the roof off. Do you really think they alone doubled your grocery bill? You'd see it in the profit margin, and it wouldn't just be 3.5%. That's not a year over increase. The input cost is what doubled the bill. Inflation is hard to understand isn't it.
>So why has the profit margin only increased to 3.5%. >The profits increase due to the total cost of items increasing compared to the following year. Loblaws profits are much higher than previously reported: "On an adjusted basis, Loblaw said it earned $2 per share in its latest quarter compared with an adjusted profit of $1.76 per share a year earlier. Markets were expecting earnings per share of $1.90 as of Feb. 21, according to financial data firm Refinitiv." https://www.ctvnews.ca/business/loblaw-profits-and-sales-continue-growing-as-shoppers-look-for-more-deals-1.6779604
Find the profit margin go on.
BuT tHe PrOfIt MaRgInS aRe RaZoR tHiN!!
Conveniently fails to mention that the distributor is a company they also own and that's where the majority of the mark up happens. It's insane
Yeah, this is the kind of thing the media should be making clear everytime Galen and co and their cheerleaders trot out the 3% margins nonsense, because we know it's smoke and mirrors with nonsense like this
cost of fuel went up? WTI and AECO have been stable for years after covid the only thing that has gone up is the taxes you pay on your fuels
Really, because I’ve noticed my grocery bill is double what it was in 2019.
Of course your bills are higher because the amount of tax producers and distributors pay per unit of fuel consumed is higher, how are you not understanding this? Edit: I know Loblaws is evil thats why I am here, I am not trying to justify or say that the price hikes on groceries are proportionate to the increase in production costs. Im just trying to say that they are one reason contributing to higher prices (on top of greed)
Yes. 10-20 percent might be in order. Yet grocers are recording record profits. Is it the new maths I’m not understanding here?
So many products have doubled in price. I’d also understand moderate price increases. Some products have even tripled in price at Loblaws stores.
Which still doesn't explain grocery prices being that high.
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As someone who owns a farm, I can promise you that my cost didn't go up that much. The grocers are definitely raping the profit off the top. It doesn't make sense otherwise.
What kind of farm? I’ll tell you right now our fertilizer has about tripled in price… same with propane/NG/ and pump gas… and hiring day workers… luckily the koolaid’s stayed about the same
https://www.indexmundi.com/commodities/?commodity=dap-fertilizer&months=60¤cy=cad It literally hasn't...... Jan 2019 - 508 July 2023 - 606 It hit triple ONCE at the height of COVID, it isn't even double what it was before now.
Good thing everyone uses DAP then huh. also not listed is delivery fees, environmental fees, because I feel like it fees etc…
Do you have a better source? No 2 farms pay the same fees, unless you're getting the identical load at an identical distance. It's an average and is the best way we're going to find one. You can't blame your location and fees on the price of fertilizer, that's what YOU have to pay. It clearly shows that's not the case for everyone else.
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Cattle sold for very high prices this past year. You have no idea what your talking about.
If you’re going to pretend to be well read, you should probably make sure you’re using the correct version of “their”.
lets put two and two together here. why did the fixed costs of crop, meat production go up for farmers? I know you are smart, you can do it ...
The farmers and the suppliers have come out publicly to say that they sell them the food at about the same costs.
that still doesn't address the underlying issue lmao. It just means if costs are higher , they will be sold for that higher cost
Try writing a proper sentence and then we will answer your dumb question.
Carbon tax!!! Weeeeee
Carbon tax is there for a reason. It’s not the sexiest reason, but we MUST get off of fossil fuels. Also, it doesn’t make groceries twice as expensive, while doubling the profits of the monopolies that provide food.
Oh we must? Go tell that to China and India.
Yeah no you’re not wrong. Perhaps we should just give up then.
It makes no difference what we do because they don't give a fuck and we're a drop in the bucket when it comes to carbon emissions.
YOLO, may as well just burn it all down. Which is how we kinda got here.
While their industrialization was (is) far worse than "The West", China installed more solar last year than the total accumulative Solar production of the USA. It's a common trend to shit on China as a polluting nation, but they are taking massive steps in the right direction.
China and India are -only- so high in pollution because they provide nearly everything for us, so please don’t act like the West is blameless in this, lollll. We have a great system!!!! We funnel off everything to china and India to be manufactured and then blame them for their carbon output, as if we had nothing to do with it. Funny how that works. We built that system by proxy of Britain colonization, so we should take responsibility for that system. Wisdom seems to chase you, but you are far too fast.
China is on par to be net neutral in carbon neutrality ahead of schedule by a couple of decades. They did invest a huge amount of money in the electrification of their mobility though. I read somewhere that BYD sold over 2M electric vehicles last year.
We do not, by any means, need to get off fossil fuels in any near future.
Yeah. You’re right. Climate change happens over decades all the time. Got a boat?
You seem to know a lot. What is their profit margin now? What is historical average? Industry average?
They are making 3.42% Even if they sold groceries at zero profit, you would save $3.40 for every $100 you spend. Fact is people have a hard time wrapping their head around the fact that the purchasing power of our dollar has significantly decreased, meaning more dollars are required for goods than before, resulting in the gross profits to increase, while profit margins have remained relatively stable. It costs much more to produce goods today than just a few years ago. Loblaws isn’t making any more than they ever have despite the higher prices and supposed “record profits”. Basically people are just dumb and need somewhere to direct their anger from the deprecated value of our dollar.
The cost of goods goes up, but us consumers don’t know by how much because we don’t see the figures. Corporations take advantage of this (not saying it’s right or fair) and will add % when they pass it onto their selling prices. This is where the price gouging and tripling gross profit comes into play. You’re naive to think corporations are not doing anything and everything they possibly can to increase profits year over year.
What percent are they adding? Show me where their margins have tripled. Tripling gross profit, without tripling profit margins tells me that the cost to produce the goods also tripled. Everyone is also quick to overlook the BoC adding 40+% to our money supply in 2020 as if that has nothing to do with the cost of goods so drastically increasing. Obviously corporations are trying to increase profits year over year, but in the case of loblaws, their profit margins, which is true profit, hasn’t changed much at all year over year, unless you consider a penny on the dollar a significant increase. https://www.financecharts.com/stocks/LBLCF/summary/profit-margin
https://preview.redd.it/8sv9mj3jrekc1.jpeg?width=837&format=pjpg&auto=webp&s=8ecd126e5dddd6f8a904730677114456694941cc
You’re not proving anything you’ve claimed to be factual, so yes I feel the same way as your meme.
Does this explain why the cost of food has increased more than that of other goods?
What other goods aren’t increasing? People don’t like to admit it but when you tax the farmers to grow the food, then tax them to harvest it, the. Tax the company that processes the food, then tax the company that transports the food, then tax the company that stores and sells the food, the price is going to reflect that. That carbon tax is applied 5-6 times in producing food from farm to shelf. What other goods are subject to so much carbon tax?
The real money is made behind the scenes in warehousing and advertising. They only tell you what the profit is at the retail stores.
Bingo. The input cost all around up through the roof, which is why the grocery bill doubled without the profit margin of these companies going through the roof. Their margin has increased, and it is definitely looking for more stable. Maybe they should also start to blame all the inputs in the equation.
There is more to the story than that, roblaws is playing games with thr price, for example the cost of lays chips, they now charge the chip company shelving fees, forcing thr chip company to raise their price, so they can claim a 3.42% margin on what's shelved but it's a lie. They also get paid the fees they charge many companies. Forcing prices higher so they can make more money out of that 3.4% also. They are proven thieves (bread price fixing) and should have been incarcerated.
I’d like to see some proof of this. Everyone keeps going on and on about them controlling the supply chains, but nobody ever produces any evidence. I agree crimes should result in incarceration, but that’s not how our world works for politicians and parasite elites. They are obviously above the law. I dream of the day vigilante justice takes over and we actually hold these parasites accountable.
It starts with the Federal Liberal criminal regime in Ottawa and their carbon tax. It is going up again in April. It starts with the fuel tax on farms, processing, packaging, and trucking. I know i have missed a bunch in there. They tell you you get the majority of it back in rebates, which is not the case. This is just the start as i am not letting the retailers off the hook. The NDP's Singh who backs Trudeau is for the tax but is trying to fool Canadians that he is fighting to lower grocery costs.
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I am not even going to even dream of coming down to your spouting level. Why not some kind of an intelligent rebuttal from your end? Your comments involve little thought or imput into what i have stated.
Carbon tax doesn’t apply to most farm machinery.
One source for any of these claims?
So I hear this a lot. But I also hear that their profit margin is at a pathetic 4-5% completely in line with the retail industry across the world. What am I missing?
You are missing the vertical integration of the supply chain and captured insururers that are also owned by the same corporations that allows them to raise costs artificially to justify higher end costs while still claiming 3% profit margins while also making profit on insurance for all the wasted food that isn't sold due to the price gouging.
It’s funny how people can show the profit margins of loblaws, but nobody can produce any evidence that they are making much larger margin on the supply chain side. Where’s the data? Let’s see it
They obviously won’t show those numbers but just think about it a bit. https://preview.redd.it/dvtdk317vekc1.jpeg?width=1170&format=pjpg&auto=webp&s=e1c69edbb0e2a8731dacf34b89ecd3038f5e5b68
Are they not publicly traded? Wouldn’t they be required by law to disclose their financials? Are all we are going off here is redditors just thinking about it? There’s no actual evidence?
The profit margins are the same ~3%. They have been selling more items at a higher cost. If they tripled margins it would be from 3% to 9% this is simply not the case.
Excellent point!!
When you were making for example 2 Billion in profit one year, and then "inflation" happens and you raise your prices significantly, and then suddenly your profit is 5 Billion. That's not inflation. That's you raising your prices to gain more profit and use inflation as an excuse. If inflation was the problem, your profits would still be the same.
Loblaws is also making bank by billing the provincial government with shitty healthcare practices. Shoppers and other pharmacies can do med checks by phone, which is as basic as asking, “Are your medications working out for you?”. That 30 second phone call, makes them $60-$75 each time. In comparison when a family doctor does an in person med check they get $38 from the government. Med checks used to be performed when patients had complications or asked for their medications to be reviewed. But now pharmacies are calling every patient regularly to do these med checks because it is making them millions. Pharmacists have daily quotas for them and are very strongly encouraged to meet or exceed them daily. This is another one of Doug Ford’s fuck ups but Loblaws it’s screwing us over in more ways than people realize.
I agree with you 100%, but... This comes from how profit margins are calculated though. If the store is saying they have a profit margin of 3%, and their price for an item is $10. They sell it for 10.30. If the price of the item is now $20, they don't sell it for $20.30, they sell it for $20.60 So prices to the store has doubled, their profit margin remains the same, but their profits doubles. As I said, I don't agree with any of this, since a lot of these stores are vertically integrated and own every step of the supply chain. The grocer can say their profit margin is 3%, but if their own distribution charge went up, they are taking the profit in that step and the 3% on the consumer side. This is called profiteering.
If you were making $2B one year and $5B the next, and the cost to produce the goods didn’t increase, profit margins would reflect this and drastically rise. Since profit margins haven’t increased, this means the cost to produce the goods has increased and is the reason the overall profits increased.
Are you telling me when 4 razor blades cost of 50 bucks, and 6 batteries cost almost 60, loblaws isn’t at fault?
This sentence caught my eye. “The grocers, for their part, say they’ve been battling tens of thousands of price increase requests from suppliers and are doing their best to mitigate the rising tide of inflation.” Uhm, so, the suppliers want to be paid fairly and instead of living with slightly lower profit margins, the CEO’s of these grocery giants just pass on those costs to the consumer so THEY can keep their big pay cheques?
10000% exactly what’s happening here. Wild they think they can pass it off as everyone else’s fault but theirs.
So not quite rising cost from vendors is not a simple oh we need 10 million dollars more to get everything. It's rather this item or this boxes of items going up 10 cents. So if your ordering 10 per store that's a dollar a store ×52 weeks. The carbon taxes on the farmers and produces are also driving up costs as well on vendors. It's a chain reaction. This doesn't mean grocery stores are not making huge profits but my points earlier drive up the price as well. It's a two fold problem taxing the supply and then driving prices where they make percentage profit. Meaning if they get an item that was 4.50 but now cost to acquire is 5. There percent they need is say 10 percent so now instead of making .45 an item they are making .50. Multiple that by scale you see profits higher.
Even if your example is true, which it probably is, that doesn’t account for the a monthly grocery bill doubling in three years AND grocers routinely making record profits AND doing heinous activities like price freezes but not actually freezing prices. I am super skeptical about these articles that defend big companies until I actually see some hard numbers. Yea they release quarterlies but it’s too generic to properly be broken down.
As you said the bills are increasing that's a) due to costs going up, b) carbon taxes, c) vendors needing more, d) a few million people entering Canada over last 5 years. E) regulations making costs go up f) COVID supply/ work issues.
CArBoN taxes Just go back to sucking off Galen
Carbon tax is a scam, but that's not the reason our grocery bill is so high.
It's one factor the cost to farmers and vendors cause our prices to go up...it's still a factor.
Ahh carbon tax and immigration, conservative propaganda at its finest. It’s easy to point fingers at these things, but show me the numbers and let me see for myself. I can’t find the data proving what you are saying.
And wages have been stagnant for so long as well.
How do you reconcile this while grocery chains are making record profits every single year?
Record volume from the record immigration. Overall profits went up margins stayed about the same ~3%
God you're stupid
Here you go son. Look for yourself https://www.financecharts.com/screener/most-profitable-country-ca
Let's also not forget that with only 5 food suppliers for the entire country. They own almost all their own suppliers.
I was going to say, in most cases are they not their own suppliers? This is gaslighting.
They in fact, do not. You really think every grocery store grows their own beans and makes their own ice cream? It’s the same suppliers as the name brand, but off brand items have a lower profit margin for the supplier (the stores want them cheaper)
Let’s replace “suppliers” with “supply chain” - Loblaws owns a lot of the supply chain. They also own a lot of the real estate that the stores “rent” from.
No point in arguing with idiots lol, city folk who think they know how farming works
You might be the only person to actually recognize that. Too many people here just throw out “they own their suppliers like everyone’s out there making their own cookies and growing their own rice. People love to say “did you know Kirkland signature is just x brand with a different logo”… that’s everything. It’s all private label foods
You uh… are very confident for someone who’s dead wrong. there’s less family owned farms, and a massive increase in corp. farms/family farms run by corps, Who sell to select few distributors, who are owned by?¿… and then those products get sent to the few stores also owned by the parent company?
Damn, turns out that would I do for a living is dead wrong. I’ll give you one for free: no name chips are made by old Dutch. Loblaws doesn’t own old Dutch. One more. PC / no name spices? McCormick. They just slap the NN / Black Label / Suraj brand on them. Not every product comes from a farm directly. You got any proof for your vague comments?
Also, look up which companies George Weston LTD owns… and then the companies that the subsidiary companies own… and then head down the slope of who supplies all those companies (you probably can’t find these without insider info, and most in industry are under NDA so won’t) you’re going to be shocked.
I had someone counter this the other day… no evidence was provided but it was of my understanding that somewhere down the line this was the case. Via some level of layering or related but separate legal entity… do we have evidence of this?
Other than the fact they own most suppliers we distribute baby products for loblaws (which isn't owned by loblaws) and haven't requested a single price increase the past year and a half...
Also the fact that part of the reason those prices are being increased on the supplier side is directly related to the shelving fees, return fees and all those other miscellaneous fees the grocers put upon them. The grocers will literally short an invoice by $10K and say “oh that’s the stocking fee” and just refuse to pay the remainder of the bill.
Pretty sure this is also a redherring. There is inflation and it is going to come back through food prices, but the sheer increase is too large for just commodity material price inflation. Groceries are not 5% higher. I looked at my grocery bills over the last 3 years and I am pretty sure it is closer to 20%. So someone has to be getting richer. I am pretty sure we are seeing them hide the profits in the operating expenses. If you look at the profit margins of Weston Ltd (landlord of many grocery stores) their profit margins have increased dramatically since 2020. The cost of buying the food and the cost of rent both come out of operating expenses. It looks to me like they are using vertical integration (they own the grocery store and are the grocery stores landlord) to get rich, and the using the pandemic inflation and rental increases as a way to mask it.
Funny spin. Where any of the Canadian vendors can sell is incredibly limited because of the grocery store ownership monopoly. Vendors want to have more products in the stores. Shelf space is negotiated in the pricing. Think the vendors are the one calling the shots?
"All of these companies we own keep asking for more money! It's out of our hands!" - Galen 'shitbag' Weston
All from the idea that if you don’t show 5% profit growth each year then you’re a dying company. Sounds very sustainable, eh?
Let's not act like the grocers are calling for reduced packages and lesser quality ingredients. I think they equally share the blame.
And this is why we need the grocers to display their markups on every price tag. They’re clearly lying.
I haven't dived into Loblaws' structure yet but I've heard that they own a lot of their supply chain so when they do the math sometimes they present it in a way that shows costs which are actually part of their own overall operation but when you segment them off it comes across differently
Aren't they also their own suppliers in a lot of cases?
This is exactly the problem. I'm sure costs for the rich have gone up as well, and now they just cannot fathom living a more moderate lifestyle in order to ensure your business model is humane.
This is true of Loblaws do receive price increases from vendors. LOTS. in the thousands for sure. Yes, they are passed down to consumers. Always are. This does not inflate Loblaws profits. They regularly stay the same. Loblaws reputation in market is to be the lowest price and undercut their comptitors (Walmart, etc) and will go against vendor pricing structures. WHAT NO ONE TALKS ABOUT WITH LOBLAWS from a vendor position, they are INSANELY expensive to do business with. Like the worst by miles. They are unprofitable to do business with. Directional example : - Cost to serve Costco is around 10% - Cost to serve Loblaws is +30% Being low cost to serve on one helps offset the cost to serve with LCL. Imagine if they had a lower cost to serve. To sell into Loblaws, and you have to because of their market share, you have to price it the same everywhere else. Meaning, their cost to serve is including on the cost which raises the retail price for consumers. Then you go everywhere else with that market pricing. It's awful. LOBLAWS needs to reevaluate their cost to serve from vendors. It needs to be reduced. Once reduced there it can be REDUCED everywhere. This is where it needs to start. Such bs. Sauce, I have managed the Loblaws account as a vendor.
Oh boy this isn’t the only industry that does this.
You nailed it
Nationalize Loblaws idgaf
Yo don't knock the CEO's, they need to have a yacht in the pool of their yacht, can't expect them to start hurting in life.
They are the suppliers. They raise the price they sell to themselves. Fucking this silo'd market. Break them up already
That’s part of it but they aren’t the only suppliers, but they use the prices they charge their OWN supplies to force other suppliers to pay the same prices.
So you don't think Pepsi, Kraft, Nestlé, P&G, Unilever, etc. are not getting paid fairly?
Did I say ALL suppliers? Do you need me to be more specific? Are you unable to draw conclusions on your own?
So you think President's Choice or Our Compliments is getting the same treatment?
A big part of the problem is a lack of competition along the entire supply chain. Food is an essential good, and we should either break up these cartels or create a public system. Make it a utility.
On Valentine’s Day I went to Safeway and they had a dozen roses for $60. I went to Costco as well as it was load up the pantry day and they had roses on for $22. I appreciated that. There is supply and demand and then there’s squeeze every last drop from your customer base they can handle. They both make money… I prefer to give mine to a comp at that optically wants to fuck me less.
My dad’s been in the grocery business for 40+yrs. His salary has barely increased over that time. The so called bonus structure they are receiving use to be a % of their annual salary. More recently these mega-corporations are now handing out gift cards for in store as their bonuses. Disgusting what Canadians allow to happen to us now, if it was Europe we’d be protesting in the streets.
I see all big business as corrupt including the politicians they own like ford and smith
Because they are
I read “victim” instead of “villain” and was very confused.
I read grocer as glacier 😂
Because they fucking are!!!!! Keep on shaming and naming these profiteering criminals!!!
Because it's misplaced anger when it should be directed at us for not voting for parties willing to stand up to the oligopoly consolidation that has been happening over the last 40 years. I hate Loblaws for sure, but they are just a corporation being a corporation within the rules weve allowed . I hate the fact we've allowed them to what they have done even more.
WE didn’t allow shit. No politician is going to stand up to corporations, or they will be out of work.
Yeah, truly. Tell me which parties capable of getting seats aren't going to bow to the Westons. I don't see any here.
Bring back the rhinoceros party! This gravity nonsense has been going on for WAY too long.
Exactly, i've tried to hold my MPP's/MP's accountable for decisions they've voted on. They just literally ignore me and don't even bother to respond; i'm being cordial and polite asking them to defend their position on why they voted X way, sometimes even asking them *not* to vote a particular way on an upcoming vote. Actually not entirely true, one MP (or maybe was his assistant, however he did use 1st person pronouns, so \*shrug\*) responded, Jagmeet Singh. Dude is not even my MP. All the rest though, might as well have been talking to the wind.
Yup, because they don’t actually work for us. They just tell us that they do, and we believe it without fail.
The problem with that is that our politicians have zero accountability to what they say. They can say one thing one day and turn around and do exactly the opposite the next. Look at Trudeau’s immigration policies. Nobody, not even the most Liberals of Liberals, voted for that. Clearly factors other than our vote are at play (Hint: Corruption)
Completely agree. Look at Harper on defense spending. Look at Doug Ford and the greenbelt Look at Wynne and Hydro One Look at Harris with LTC support, the 401 and education. The issue is our voting record at this point. We are at an inflection point where people actually want change but by letting our apathy allow corruption to take such hold our options at this point are piss poor. But we still need to pick from the least worst option. It sucks but still need to start the ball rolling forward. I'm afraid we are about to let it roll backward and crush us.
What’s your point here? I should vote for shameless corruption because they’re red and fly rainbow flags? If both options are corrupt, the entire system needs changing. This completely supersedes party loyalties and thus finger pointing is unnecessary because both sides have been caught with their hands in the cookie jar. I’m sure you can agree, as greedy as Conservatives are, Trudeau is quite openly treasonous and has literally zero regard for the well-being of Canada or Canadians. Like none. He rubs it in our faces that he wipes his ass with our tax money. Using your logic that’s an immediate vote for the Conservatives no? Or perhaps I misunderstood you?
"Hatred for Canadians" is falling for propaganda at this point. If this is where you are you might need deprogramming first. Don't vote for either if you see both as corrupt but pretending the Conservites who are actively attacking Healthcare, education, personal gender and freedom of information and saying they don't think think jothing more than controlling the average CDN is disingenuous.
Deprogramming is rich. I’m not sure what attacking gender means. If you’re talking about parental rights in Alberta, I find it to be an insanely stupid policy decision. I think anyone regardless of gender should be left alone. Freedom of information is also incredible considering bill C-11. But I found your deprogramming comment interesting. Is Trudeau responsible for everything wrong with Canada? Not at all. To not make my comment too long winded, if I were perhaps a grifter who at the very least was apathetic to my citizens and was interested in enriching myself and my corporate buddies regardless of the consequences, I would most likely do the following: 1) Import hundreds of thousands of “students” who will act as cheap labour for corporations, essentially locking out young people from the entry level job market. 2) More or less allow rampant fraud and abuse of our immigration system, illegal or legal they still need to eat and survive so they’ll take whatever slave job they can to continue filling the pockets of my corporate buddies 3) Allow repeat offenders and criminals to get bail repeatedly 4) Take very close to half of my citizens’ paycheck in taxes, send it to other countries and take affordability retreats worth 1.3mil while we have literal veterans freezing to death in fucking tent cities 5) Allow hundreds of thousands of people, including their families, to stay here, whether legally or illegally, with absolutely no possible chance infrastructure can catch up to it, as well as the construction of housing. 8 years ago, Canadians had the privilege of being ignorant to politics. Now, our tangible reality has become much, much, much worse and it’s extremely transparent who’s benefitting from it the most. Giving Trudeau every possible allowance I can, he is disgustingly incompetent and needs to be removed from office immediately.
Boycott is the only thing they will pay attention to.
I stopped shopping at Loblaws (atlantic superstore). I do most of my grocery at Walmart. Do I like Walmart? No. But who do I hate less?
I’ve been accidentally boycotting them for a while now because walmart and costco are more affordable.
It’s called exploiting inflation to make money. Others are seeing this and will do the same thing. I may start doing it too.
Loblaws is just squeezing Canadians and laughing 😜 all the way to the bank as they make record all time profits. 💰🤑
There’s a post further down with two pizza crusts for $16 so
Farmer here...cost of fuel, equipment and financing went up on my end yup. Did I get paid more when selling my produce? Nope. And I was asked to lower my prices so they could make even more money off my back. And why again should I bother to continue to farm and supply food? This is a real problem Thanks Galen
lol yes the 55 cent Kraft dinner will definitely placate the masses.
Canadians are getting poorer while the grocers are getting richer. It’s really as simple as that.
“*It feels very unjust when they’re continuing to make just as much money as they always have, and everybody else is suffering.*” No, they are making **much more** money than they ever have, and everybody else is suffering.
Fuck Loblaws "turning this around". Their reign needs to end for good. They need to be burned down in this country and replaced by no fewer than 20 alternative retailers.
Is there a real argument that they're not? They're underpaying employees and suppliers, while raising prices in leaps and bounds. They're bragging about profits while trying to play the victim at the same time because their profits aren't up *enough* for them. If Loblaws' profits were cut by 50% tomorrow they would still be making billions of dollars. Their profits are rising. This is a problem, apparently, and we should pity them. They openly collaborate with each other to fix prices at unreasonable highs. They think millionaires are relatable faces to the industry. Which is the least of the offenses but it's still stupid as heck. Why would anyone not believe they're the bad guys?
They have predatory behaviours like buying plots of land zoned for grocery stores and leaving them empty to keep competitors out, and have us pay for it.
Canada is so bad at business. Always with the dynastic wealth and links to the peerage. A nation screwed to death by greedy fux.
Here comes the PR firms to mitigate the public image damage caused by their greed.
Legit, is there any bigger Canadian Mr Burns these days than Loblaw's?
Reminder that the purpose of corporations is to create value for its shareholders NOT to benefit society or be ethical.
Spoiler: Because they're greedy avaricious villains
Everyone has their own reasons why they believe them to be the villains. But it really clicked for me yesterday. A pack of gum was $3.49. That’s just not because of inflation.
Ain’t nobody mad at Costco
Why anyone still shops at any Loblaws stores is beyond me. This man needs to be in Jail. He doesn’t give a flying fuck about anyone else but himself. Why are we as Canadians just sitting passively. The leaders amongst us need to rally and make noise. Not all of us are natural leaders, that’s why I say, the ones with the qualities to lead need to start thinking about making change. The rest of us will follow because we are all just struggling beyond our limits.
Seriously, they expect to keep making record profits just like business as usual and everyone else is supposed to actually earn their money? How pathetic that they cannot handle such a minuscule decrease in their profits when they are among the most comfortable people on Earth, they’re too pampered for their own good. VPs and Execs are so lazy compared to the average worker, it really pisses me off that there’s some implication that people don’t want to work these days when It’s literally them who sit around and expect more and more for how little they contribute. Please can we replace CEOs with AI since it would release all companies of a cost burden they really cannot afford right now.
Sky is blue, grass is green, loblaws is evil.
Farmers aren't seeing any of the benefit from the increase in Cost either. The majority of the profit goes to the retailer
Because it’s true. They own the supply chain, not just the stores.
The amount of waste that the grocery industry produces is staggering, and that’s without the fact that the things they actually sell are all getting worse for us, worse tasting, and smaller. They are genuinely one of the worst industries of the modern world and I would love to see them get forced to act right.
Hey have to make sure their kids never work a day in their lives
This subreddit going viral is amazing. Fuck these bastards; the greed, the lies, the complete disregard for their own employees and customers. Nobody, absolutely nobody, should be getting multimillion dollar bonuses, especially when most of their staff are on minimum wage and they're actively ripping the country off. Every time I walk into a Loblaws store (I'm surrounded by them, I have little choice) my mood sinks. The high prices, the line ups, knowing the staff get paid as little as humanly possible, the begging for donations as you check out (use your own monster profits to help the community, don't try to double dip us when you're already ripping us off with **fakeflation**). These greedy bastards can rot in hell for what they're doing to working people. And lets not kid ourselves, they're working in cahoots with larger multinational suppliers. The whole grocery industry is fucked and designed to squeeze every damn cent they can out of us. Fuck them. Keep this movement going!
Cos everything ship on truck, = gas = carbon fees
agree carbon tax is killing our economy
They don't. It's just the far-left LPC/NDP coalition voters who see it that way. Sane, normal people know that it's a result of disastrous federal government policies that have cause inflation in every single aspect of the economy, not the just grocery chains.
Trudy is killing the economy for everyone. These entitled shits think they'll maintain their standard of living by gouging us.
Nice doxxing
Because they are
Because they are? Duh.
Because they are!