canada economy 2020

Shoppers at a west-end Toronto Sobeys grocery store, Sunday, June 26, 2023. (THE CANADIAN PRESS/Graeme Roy) Major Canadian grocer Empire, the parent company of Sobeys, confirmed it will expand price freezes on several products between November 2023 and January 2024. A month ago, major grocers in Canada did not confirm whether they were committed to special promotions to stabilize grocery prices despite promises by the federal government to alleviate inflation and the rising cost of living for Canadians. Now, Empire confirmed it will be expanding its price-freezing practice to 20,000 of its packaged products in the coming months, the company said in an emailed statement to CTV News Toronto Tuesday. “This is a meaningful step-up from prior years and has resulted in cancelling price increases on approximately 1,700 additional products initially planned to occur during this timeframe,” a spokesperson for Empire said. Empire adds it typically implements price freezes on 90 per cent of all packaged products from November to January annually, with exceptions in certain scenarios. Price increase cancellations will remain in place regardless of any internal or external conditions that might cause prices to go up, according to the company. The federal government gave an ultimatum to major grocers in September, saying they should present plans to stabilize grocery prices by Thanksgiving or face potential tax measures as a consequence. The move came in response to concerns that Canadian families were struggling to put food on the table as grocery prices continued to climb rapidly. Grocery prices in August were 6.9 per cent higher than they were a year ago, according to StatCan. “We also have significant and meaningful plans in development to continue to help stabilize food prices past February” the company said. Empire’s announcement comes after Statistics Canada reported a 3.1 per cent slowdown in the annual inflation rate in October, down from 3.8 per cent in September. Statistics Canada said the largest contributors to inflation continued to be mortgage interest costs, food purchased from stores and rent. While grocery prices rose faster than overall inflation, Statistics Canada said the pace continued to slow. Grocery prices were up 5.4 per cent year-over-year in October compared with 5.8 per cent higher in September. Produce is shown at a west-end Toronto Sobeys grocery store, Sunday, June 26, 2023. THE CANADIAN PRESS/Graeme Roy OTTAWA – A House of Commons committee is asking the heads of Canada’s major grocery chains to appear before MPs and explain their plans to stabilize food prices. The agriculture committee passed an NDP motion last Thursday to invite the grocery executives, or summon them if necessary, to testify about the measures their companies are taking to address food inflation. Earlier this fall, Industry Minister Francois-Philippe Champagne announced the major Canadian grocery companies — Loblaw, Metro, Empire, Walmart and Costco — had presented to the government their plans to tackle rising prices, which he says included discounts, price freezes and price-matching campaigns. Champagne offered few details about these promotions at the time, saying he wanted the grocers to compete with one another. Most grocers have also not confirmed the details of their plans. The motion at the parliamentary committee is asking the grocers to submit “a comprehensive report on their strategies and initiatives taken to date and on further actions aimed at the stabilization of grocery prices in Canada.” The deadline for the submissions is Nov. 2. It is also inviting Champagne and Finance Minister Chrystia Freeland to appear before committee to answer questions. The Canadian Press reached out to the grocers on Tuesday for comment on the parliamentary committee’s motion. Sarah Dawson, aspokeswoman for Sobeys, said the company has not yet received an invitation or request from the committee but that it has “every intention of participating if asked.” She said Sobeys has shared its plans with Champagne, noting they “include some of the novel measures” mentioned by the minister. “Our plans are competitively sensitive and we do not plan to discuss them publicly before they are launched in our stores,” she added. Metro declined to comment, while the others did not immediately respond. The Canadian Press had asked the grocers earlier this month for more details on their pledges to the federal government. Walmart was the only company to weigh in, with a spokeswoman saying the company promised to continue offering “everyday low prices,” which refers to its strategy of offering low prices on a regular basis, rather than on promotion only. In an interview with The Canadian Press on Oct. 16, Champagne said he wishes the grocers were “more forthcoming” about their plans. The federal government is taking other steps aimed at addressing high grocery prices. On Tuesday, Champagne announced more funding for non-profit consumer advocacy organizations to help fund projects that focus on retail practices that hurt consumers, and on the development of tools that help consumers make informed decisions and save costs. Prime Minister Justin Trudeau announced the decision to pressure grocers to tackle rising prices in September, one of several affordability measures from the Liberals after a summer of polling showing growing support for the Conservatives. The Conservatives have been hammering the Liberals over the cost of groceries, blaming them on Liberal spending, while the NDP Leader Jagmeet Singh has said the Liberal government’s “plan to ask CEOs nicely to reduce prices is ridiculous.” Grocery prices have risen in Canada at a faster rate than overall inflation, although they have also risen dramatically around the world, with many countries seeing food prices rise at an even faster rate. OTTAWA – Industry Minister Francois-Philippe Champagne says he wishes Canadian grocers would be more forthcoming with the public about their plans to stabilize prices. Earlier this month, Champagne announced that major Canadian grocers — Loblaw, Metro, Empire, Walmart and Costco — submitted initial plans to the federal government for how they will stabilize prices in the face of high inflation. The Liberal government summoned the heads of the companies to meet in Ottawa last month, demanding they present such a plan by Thanksgiving or face