Cory Morgan: Boycotting Loblaw Will Do Nothing to Reduce Food Costs

Boycotting Loblaw Will Not Lower Food Prices, Says Cory Morgan

May 3, 2024 TruthUSA

Commentary

When faced with problems, people often seek simple and quick solutions. However, most problems are complex and require time and effort to address.

Many Canadians are feeling the strain of rising food costs, but there is no easy solution in sight. Despite this, some individuals are directing their frustration towards retail grocers, although this anger is misplaced and counterproductive. The proposed national boycott of Loblaw stores in May is unlikely to achieve anything positive and may even lead to higher grocery prices.

The misconception that retail grocery chains are unfairly pricing products persists. Politicians like NDP Leader Jagmeet Singh using terms like “greedflation” to describe grocers and media outlets focusing on revenue increases at the expense of profit margins only add to the confusion. It is unclear what boycotters hope to achieve with their actions.

Lowering prices to a meager profit margin would barely benefit shoppers and could harm investors. Accusations of monopoly positioning against Loblaw are unfounded, as the grocery market in Canada is competitive. Consequently, blaming Loblaw for high prices is unjustified.

The targeting of Loblaw may be due to its prominence and identifiable leadership. Galen Weston Jr., as the face of Loblaw Companies Ltd., becomes an easy target for those seeking to criticize wealthy individuals. The government’s investigation into grocers for collusion and price-fixing revealed only modest profits, suggesting more competition as a solution.

The actions of boycotters and politicians may inadvertently result in higher grocery prices for Canadians. The government’s efforts to attract foreign grocery chains for increased competition have not been successful, partly due to the negative environment created by the attacks on existing grocers.

Foreign investors may opt for safer investments elsewhere rather than enduring the scrutiny faced by Canadian grocers. The complex factors influencing prices, such as population growth, taxes, supply chains, and inflation, require thorough discussions and cannot be solved by simplistic solutions.

Consumers are unlikely to see immediate reductions in grocery prices, regardless of boycotts or political maneuvers. Addressing the underlying issues will take time and concerted efforts from all stakeholders.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.

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