Galen Weston

Thursday February 2, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 2, 2023

Loblaw ends No Name price freeze, vows ‘flat’ pricing ‘wherever possible’

December 8, 2016

Loblaw will not be extending its price freeze on No Name brand products, but vows to keep the yellow label product-pricing flat “wherever possible.”

“The more than three-month price freeze ends January 31 — but we’re not done,” a Loblaw spokesperson said in an email to CTV News Monday. “Looking ahead, we’ll continue to hold those prices flat wherever possible, and switching to No Name will still save the average family thousands this year.”

September 29, 2022

Loblaw announced in mid-October it would freeze prices for 1,500 products sold under its No Name private label. At the time, Loblaw chairman and president Galen G. Weston said the price of an average basket of groceries was up about 10 per cent, something he said was much out of Loblaw’s control.

The Canadian retailer noted Monday, food inflation has continued to increase, costing the company more to stock shelves.

The country’s inflation rate slowed again in December 2022 to 6.3 per cent. However, Statistics Canada said grocery prices were up 11 per cent for the month compared to the year before. This was down a tick from November’s 11.4 per cent.

June 18, 2020

Canada’s grocery chains have been under fire for making steady profits amid high inflation. Third-quarter profits at Loblaw Companies Ltd rose nearly 30 per cent compared to a year ago. Quebec grocery giant Metro Inc. reported a first-quarter profit of about 11 per cent. (CTV) 

Canada’s largest grocer is stepping up its public relations strategy to convince people that it is not to blame for higher prices. But experts say consumers grappling with food affordability are in no mood to hear that message.

On the day that its 11-week price freeze on No Name products ended on Tuesday, Loblaw Cos. Ltd. -0.13% decrease was active on Twitter, responding to people who criticized the company with messages explaining that “food inflation is a global issue” and that price increases were the fault of suppliers who had themselves raised prices. Other Loblaw tweets heralded the price freeze for helping consumers “at a time they needed it most.”

But the defensive tone didn’t sit well with many, and is emblematic of a larger communications challenge facing Canada’s grocery retailers, who have reported significant increases in both sales and profits amid inflation. As the last point of contact in a sprawling supply chain, grocers have been a target for shoppers’ understandable anger over the affordability of basic necessities. (The Globe & Mail) 

Thank you Bryan Trussler for the inspiration for this cartoon.

 

Thursday June 18, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday June 18, 2020

Grocery chains play the Grinch in springtime

What was going through the minds of Canada’s big grocery chains when they decided, pretty much simultaneously, to end premium pandemic pay for front-line staff?

May 22, 2019

One thing for sure, it wasn’t positive PR or corporate image messaging. Loblaw, Empire Co. Ltd. (Sobeys) and Metro are all getting hammered for the decision. And they deserve the pounding. 

The three grocery giants had been paying their employees a premium for continuing to work during the COVID-19 pandemic, keeping shelves stocked and people fed despite the personal risk. The so-called “hero pay” plans differed somewhat company to company, but they were all intended to convey the message to the public and staff that front-line grocery workers were heroes of the pandemic and deserved recognition.

Coronavirus cartoons

So what happened? Did the pandemic quietly end? Is the elevated risk gone?

Here is what Loblaw hair Galen Weston said about ending the $2 two dollars per hour premium: “As the economy slowly reopens and Canadians begin to return to work, we believe it is the right time to end the temporary pay premium we introduced at the beginning of the pandemic. Things have now stabilized in our supermarkets and drug stores. After extending the premium multiple times, we are confident our colleagues are operating safely and effectively in a new normal.”

Genevieve Gregoire, Metro’s communication manager, said: “We are no longer working under the crisis conditions that prevailed from March through May as grocers were amongst the only retailers open to the public. Demand is stabilizing as other business are reopening.”

Sobeys CEO Michael Medline put it this way: “As provinces execute their reopening plans and customer behaviour shifts, we felt that this was a natural time to end our Hero Pay program.”

Here’s the thing though. Ontario, for example, is still seeing new cases every day. Yes, the numbers are down, but we still saw 184 new cases between Tuesday and Wednesday morning. There are still new outbreaks at LTC facilities. The public and store staff are still advised or required to wear masks. 

Grocery execs and analysts will be quick to point out that most staff are second-income earners, or young people working part-time, as if that somehow means they shouldn’t be paid a living wage. They should and not just during a pandemic. 

We are not through this yet. Nearly everyone expects a second wave, which could bring consequences not unlike the first wave. Will grocery chains again decide their staff are heroes and pay them a premium? Will they again take out expensive TV ads thanking those heroes?

And what about the provincial government? It has been full of praise for front-line workers of all stripes. Wouldn’t you think it would reconsider its decision to kill a minimum-wage increase? Or is all Premier Doug Ford’s rhetoric, like that of the grocery store chains, really just a gimmick? (Hamilton Spectator Editorial)