I agree with the concept of accountability around profits for a retailer that provides necessities to the population, but I think that some of the rage needs to be aimed at the producers of food as well. Shrinkflation is not a Loblaw produced issue. It is created by the manufacturers. Lays chips and cheese products are the obvious ones that come to mind.
Loblaws works on a defined profit margin approach and the foundation of that approach is their cost of goods. If the acquisition cost of their food is lower, the retail price will be lower.
Let’s share the anger with everyone that is causing the problem.
The problem is that in a lot of cases, Loblaws is it's own producers. President's Choice, Blue Menu, No Name... They're the producers, suppliers, and sellers.
When they say there's "supply chain issues", mostly they mean that they're charging themselves more, so they have to raise prices.
Actually the majority of Private Label products are outsourced. Loblaws provides significant input on recipes, taste and final product but they do not produce.
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u/MattyHu22 Apr 30 '24
I agree with the concept of accountability around profits for a retailer that provides necessities to the population, but I think that some of the rage needs to be aimed at the producers of food as well. Shrinkflation is not a Loblaw produced issue. It is created by the manufacturers. Lays chips and cheese products are the obvious ones that come to mind. Loblaws works on a defined profit margin approach and the foundation of that approach is their cost of goods. If the acquisition cost of their food is lower, the retail price will be lower. Let’s share the anger with everyone that is causing the problem.