Grocery retailers raising prices

Canada's three major retailers, Loblaw Companies Ltd., Metro Inc. and Empire Co. Ltd. have raised their prices in recent months because of higher wholesale costs of fresh fruits and vegetables and some other foods, reports Marina Strauss, in a Globe and Mail article.

According to the article, grocery retailers interviewed said they resisted passing on higher costs to consumers most of last year, but since the latter part of last year, food retailers started to raise prices on some foods.

Darren Myers, chief financial officer at Loblaw Companies Ltd., Eric La Fleche, chief executive officer at Metro Inc., and Michael Medline, chief executive officer at Empire and Sobeys, spoke at a CIBC retail conference on Wednesday.

In the Globe and Mail story, Loblaw's Myers says "we have tried not to raise prices...but there are a lot of increases coming from the supply base right now.”

Metro's La Fleche stated the company was trying to keep price increases between 1.5 per cent and 2.5 per cent.

Empire's Michael Medline stated that the company was not seeing a "cautious customer" but acknowledged consuemrs are paying more for many products as Sobeys passes on higher supplier costs.

The full story is accessbile online to Globe and Mail subscribers.

 

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