Thursday, April 25, 2024

Why does Loblaws get all the hate?

There's a Reddit group out there called r/loblawsisoutofcontrol which does a good line in outrage, and is proposing that we all boycott Loblaws supermarkets during the month of May. They seem to think that this will force Loblaws to reduce their prices by 15% overnight, which seems like a rather optimistic goal. Buy, hey, power to them. Nothing wrong with a bit of idealism and consumer pressure.

What I don't quite understand,  though, is that there are lots of supermarket chains out there, some owned by Loblaws, some by Metro or Sobeys, some are standalone giants like Costco and Walmart, and some are smaller chains or independent stores. You can choose to shop wherever works for you, right?

So, if you don't like Loblaws stores, go to No Frills (also owned by Loblaws, but much cheaper) or Price Chopper or wherever. Some people like Loblaws for its wide aisles, cleanliness, freshness, selection, etc, and are willing to pay for that. Some people are not and go elsewhere. You pays your money and you takes your choice.

There are many indignant and impassioned social media posts of people making comparisons between Loblaws prices and those of No Frills or Food Basics or Walmart, and - surprise! - Loblaws is more expensive. They could have done a comparison of Loblaws with Pusateri's and concluded that Loblaws was cheaper. Should we be boycotting Pusateri's then? And a recent multi-university study concluded that Loblaws stores are still far and away Canada's preferred location for discounted food products, followed by Walmart, Costco and Metro.

Shopping at Loblaws is not a human rights issue. It's just a supermarket chain, one of many (although the largest in Canada, so it attracts much more attention and vitriol). More to the point, it's a business, not a charity, and it charges what it thinks its market will pay. Sure, boycott it if it makes you feel better, but there are probably better uses for your energy, anger and outrage.

UPDATE

There have been many such anecdotal studies, but here is an example of a price comparison between Loblaws, Sobeys and Walmart. Make of it what you will.

As you might expect, Walmart is usually cheaper than Loblaws, but not always - for a few of the products tested, Loblaws was actually cheaper than Walmart. Sobeys was ALMOST ALWAYS more expensive than both Walmart and Loblaws. So, shouldn't we be boycotting Sobeys?

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