Loblaw Agrees to Sign Grocery Code of Conduct

  • By eggsdev
  • May 15, 2024
  • 56 Views

After six months of negotiations President and CEO of Loblaw Companies Ltd. , Per Bank, has announced that they are ready to sign the governments grocery code of conduct. One important caveat is their participation is contingent upon other industry players joining, as one notable exception, Walmart Canada, still holding out.

This decision comes amidst a month long boycott organized by a Reddit group loosely called ‘Loblaws is out of Control’. The group has urged consumers to avoid all Loblaw subsidiaries for the month of May 2024. One of the group’s goals is to get Loblaw to sign onto the grocery code of conduct. Per Bank met with the group’s leader Emily Johnson in early May but insists this had no effect on their decision. Although the boycott seems to have little effect on Loblaws bottom line smaller grocers and coops are reporting a boost in sales.

Loblaw has agreed to remove multi-buy promotions at No Frills stores where consumers get a better price per unit but only if they buy in multiples. Loblaw also bowed to public pressure in January when it announced the discount on perishables nearing their expiry date was being slashed from 50% off to 30% off, reversing it within days.

Michael Graydon, CEO of the Food, Health and Consumers Products Association of Canada and chair of the interim board for the code is hoping to bring Walmart and Costco onboard. Costco has said it would be hard to agree to a code that wasn’t adhered to by the entire industry while Walmart indicates it will review the latest draft to determine their next steps. Metro and Sobeys continue their strong support for the voluntary code that is set to take effect June 1, 2025.