Ā鶹“«Ć½

Politics

    • What a highly anticipated report on grocery store competition reveals about profit margins, barriers

    Share

    The Competition Bureau of Canada is calling on all levels of government to boost competition in the grocery industry, in a bid to lower prices for shoppers.

    The independent agency launched its study of Canadaā€™s retail grocery market last October, and in its report, published Tuesday, made several recommendations to government to encourage competition in the industry.

    Namely, the Competition Bureau is recommending that Canada develop a strategy to promote new types of grocery businesses, such as online grocers, encourage independent and international grocers to enter the Canadian market, introduce unit pricing requirements, and take measures to limit property controls in the industry.

    ā€œCanadaā€™s grocery industry is concentrated,ā€ the report states. ā€œIt can be difficult for small and medium-sized businesses to compete effectively against Canadaā€™s grocery giants. It is also challenging for new businesses to enter the industry successfully.ā€

    ā€œWithout changes in the competitive landscape, Canadians will not be able to fully benefit from competitive prices and product choices,ā€ it also reads.

    The examination comes amid heightened political attention on the rising cost of groceries. In October, the House of Commons unanimously passed an NDP motion calling on the federal government to take steps to tackle "greedflation," including asking the competition bureau to investigate grocery chain profits.

    Here are the key takeaways and recommendations from the report.

    INCREASES TO MARGINS STARTED PRE-PANDEMIC

    According to the Competition Bureau, Canadaā€™s three largest grocers ā€” Loblaw, Sobeys and Metro ā€” last year collectively reported more than $100 billion in sales and earned more than $3.6 billion in profits.

    ā€œThis study came at an important time,ā€ said Anthony Durocher, deputy commissioner of the competition promotion branch at the Competition Bureau, who added grocery prices have been increasing at their fastest rate in more than 40 years, while the retail grocery industry has become increasingly consolidated.

    ā€œWe undertook this study not in response to any specific allegations of wrongdoing, but to determine whether competition issues could be contributing to rising grocery prices, and whether there are steps that governments can take to improve competition as a way to help rein in rising grocery prices,ā€ Durocher also said.

    The Competition Bureau report meanwhile points to the grocery giantsā€™ margins ā€” as opposed to the cost of food, which is rising overall, or the companiesā€™ profits ā€” as an indicator that there is a need for more competition.

    To that end, a key finding of the report is that the countryā€™s largest grocersā€™ food gross margins have increased by about one or two percentage points since 2017, so the increases started three years before the ā€œsupply chain disruptions faced during the (COVID-19) pandemic and the current inflationary period.ā€

    That margin is roughly equivalent to an additional $1-2 for each $100 spent on groceries, and according to the report, ā€œgrocers make relatively little on each item, but make their profits in volume.ā€

    SHOPPERS NEED MORE PRICE COMPARISON INFORMATION

    The Competition Bureau as part of its report is calling on the provincial and territorial governments to introduce rules around unit pricing information, so shoppers can make more informed decisions about where to find the best deals.

    Unit pricing shows, in addition to the total cost of a product, the price for a standard package size, for example, the cost per 100 millilitres of orange juice.

    While many places in Canada already display their unit pricing, it is only legally required in Quebec. New Zealand, Australia, and the U.K. have all implemented forms unit pricing regulations, which help consumers compare costs.

    The report recommends provincial and territorial governments work together to put in place consistent unit pricing rules across the country.

    ā€œCompetition works best when consumers know where to get the best deals,ā€ the report states.

    MORE INDEPENDENT, INTERNATIONAL GROCERS NEEDED

    The report also calls on governments to encourage independent and international grocers to enter the Canadian market, and lays out the existing ā€œsignificant barriersā€ for them in doing so.

    ā€œIndependents play an important role in communities across Canada, but without government support, we should not expect them to significantly expand in the near future,ā€ the report states.

    ā€œThe entry of new competitors and growth of existing independents would increase competition, empower consumers, and drive businesses to lower prices, improve product quality, and innovate,ā€ it also states.

    Many independent grocers, according to the Competition Bureau, must buy groceries wholesale from their competitors because they are not large enough to have their own warehouses, and they are concerned about then being bought out by a larger chain, among other challenges.

    Canadaā€™s size and low population density also add to the challenge of building a network, while the countryā€™s largest grocers operate thousands of stores and have an existing robust network.

    ā€œDespite these challenges, we are of the view that attracting new grocers to the Canadian market is one of the key levers governments have to help bring about lower prices and greater choices for Canadians,ā€ Durocher said.

    With files from CTVNews.ca Senior Digital Parliamentary Reporter Rachel Aiello

    IN DEPTH

    Opinion

    opinion

    opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster

    A Hail Mary rehash of the greatest hits from the Trudeau governmentā€™s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the partyā€™s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?

    opinion

    opinion Don Martin: How a beer break may have doomed the carbon tax hike

    When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.

    CTVNews.ca Top Stories

    British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.

    Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.

    A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.

    opinion

    opinion How to make the most out of your TFSA

    The Tax-Free Savings Account can be a powerful savings tool and investment vehicle. Financial contributor Christopher Liew explains how they work and how to take full advantage of them so you can reach your financial goals faster.

    Canada

    • Bullet casings recovered from the scene of a B.C. womanā€™s murder 30 years ago will be retested for DNA after the provinceā€™s highest court ruled it is ā€œin the interests of justiceā€ to do so in support of an ongoing appeal.

    • A child was sent to hospital after being attacked by a coyote in northwest Calgary.

    • A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.

    • British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.

    • A commemorative rally marking the fourth anniversary of Joyce Echaquanā€™s death will take place in Ville-Marie on Saturday afternoon.

    • Alberta's premier spoke to calls for an outside, independent investigation into the death of Jon Wells during an incident involving Calgary police last week.

    World

    Politics

    Health

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    Sports

    Autos

    • A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.

    • A U.S. driver somehow squeezed her vehicle through a parkade hallway at a Metro Vancouver casino Thursday, before getting stuck at an elevator bank.

    Local Spotlight

    When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.

    A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.

    A pizza chain in Edmonton claims to have the world's largest deliverable pizza.

    Sarah McLachlan is returning to her hometown of Halifax in November.

    Wayne MacKay is still playing basketball twice at Mount Allison University at 87 years old.

    A man from a small rural Alberta town is making music that makes people laugh.

    An Indigenous artist has a buyer-beware warning ahead of Sept. 30, the National Day for Truth and Reconciliation.

    Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.

    An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.

    • Bullet casings recovered from the scene of a B.C. womanā€™s murder 30 years ago will be retested for DNA after the provinceā€™s highest court ruled it is ā€œin the interests of justiceā€ to do so in support of an ongoing appeal.

    • Tactical evacuations were underway in Christina Lake, B.C., Sunday afternoon due to an out-of-control wildfire, according to officials.

    • The fertility rate in Canda reached an all-time low in 2023, and the lowest rate was recorded in British Columbia, according to new data from Statistics Canada.

    • A woman is dead, and a man is in police custody following a stabbing in a home in Scarborough Sunday afternoon.

    • A disappointing season was capped with one final blow Sunday as the Toronto Blue Jays dropped a 3-1 decision to the Miami Marlins.

    • A large crowd of people hoping to collect a piece of Toronto history gathered outside the ;Leslieville dollhouse' Sunday, as the new owners of the beloved east-end home gave away the dolls, toys, knick-knacks, and teddy bears that covered the property.

    • The Calgary police homicide unit is investigating after two people were found dead in a home in the community of Penbrooke Meadows.

    • Calgarians gathered for a rally on Sunday in support of the people of Lebanon as conflict between Israel and Hezbollah continues to escalate in the region.

    • A child was sent to hospital after being attacked by a coyote in northwest Calgary.

    • The federal holiday on Sept. 30 will bring some schedule changes in Ottawa as Canada marks the National Day for Truth and Reconciliation.

    • Remembrance Day preparations are underway at Beechwood Cemetery and hundreds of people took a first step of showing their respect.

    • CTVNewsOttawa.ca takes a look at some of the events in Ottawa and around the region marking the day.

    • Provincial police (SQ) say a head-on crash on Highway 30 in Candiac has left two people dead.

    • The provincial Crown corporation in charge of liquor sales in Quebec says a computer issue resulted in all its products being temporarily listed at 30 per cent off on its website.

    • Sandy Yep's roots dig deep in Chinatown. His family planted themselves in the neighbourhood in 1895, and four generations later, he was raised in its vibrancy. "When I was growing up, you would hear mahjong being played, you would hear voices of families laughing and running," Yep said. His ties to Chinatown are framed in several photos displayed in an outdoor exhibit in the heart of the neighbourhood.

    • A person is in critical condition after a serious crash that closed down Highway 795 south of Calmar on Sunday.

    • Kim Ruether lifted her son's eyelid and saw his still, dilated pupil staring at the ceiling as he lay on a stretcher in a northwestern Alberta hospital hallway a decade ago. She says she didn't need a doctor to tell her the boy was dead.

    • Fort McMurray RCMP are warning residents about misinformation circulating online in the community.

    • Women entrepreneurs from across New Brunswick were front and centre at a ā€˜pop-up shopā€™ showcase on Sunday.

    • The East Coast Ukrainian Festival kicked off at Pier 21 in Halifax on Saturday, celebrating Ukrainian culture and traditions.

    • Residents in Tadoule Lake, Man., and Churchill can expect to see heavy rain trickle in Sunday afternoon, lingering until Monday evening.

    • Canadian Space Agency astronaut Jeremy Hansen touched down in Winnipeg this week, ahead of his lunar mission set to launch in a yearā€™s time.

    • Winnipeg Fire Paramedic Service crews believe a candle caused a major house fire in the cityā€™s William Whyte neighbourhood Sunday afternoon.

    • A man is in custody after allegedly robbing a business in McLean, Sask. with an edged weapon on Saturday.

    • The National Day for Truth and Reconciliation takes place on Sept. 30 every year and is meant to recognize residential school survivors and their families.

    • The Town of Lumsden held their ninth annual Scarecrow festival Saturday.

    • People in Guelph may notice a new addition at the entrance to Franchetto Park in Guelph.

    • A young motorcyclist has been taken to an out-of-region hospital after a single vehicle crash in Woolwich Township.

    • A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.

    • The fourth and final walk in memory of Megan Gallagher drew around one hundred people in Saskatoon on Sunday.

    • RCMP are seeking tips after a church on Main Street in Loon Lake burned to the ground.

    • Saskatoon Police Service has arrested a suspect in connection with two separate stabbing incidents that occurred earlier this month.

    • Ontario Provincial Police remind the public that ā€˜a case is never closed until it is solved,ā€™ while highlighting the force's continued investigation of the 1996 disappearance of Melanie Ethier.

    • The CEO of the Ottawa Mission is responding to controversial comments made this week by Premier Doug Ford about those living in homeless encampments that received swift blowback from advocates.

    • A crash between a car and motorcycle closed a portion of Oxford St. in downtown London for several hours on Sunday.

    • On Saturday night at her parentsā€™ home in Delaware, Ont. the Olympic bronze medallist in pole vault welcomed everyone who played a role in getting her to the podium in Paris.

    • The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.

    • A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.

    • OPP officers arrested a suspect while he was in the middle of a possible theft Sunday morning in Wasaga Beach.

    • A Barrie police officer suffered serious but non-life-threatening injuries while arresting a suspect Sunday afternoon.

    • Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.

    • The BSI aims to elevate Black academic excellence, promoting scholarship, mentorship, and cultural knowledge.

    • The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.

    • Bullet casings recovered from the scene of a B.C. womanā€™s murder 30 years ago will be retested for DNA after the provinceā€™s highest court ruled it is ā€œin the interests of justiceā€ to do so in support of an ongoing appeal.

    • The fertility rate in Canda reached an all-time low in 2023, and the lowest rate was recorded in British Columbia, according to new data from Statistics Canada.

    • BC NDP Leader David Eby promised Sunday that his party will ā€“ if elected ā€“ deliver a tax cut that will put money back into the pockets of people in the province who are struggling with the rising cost of living.

    • Fire crews in Vernon, B.C., responded to a large house fire early Saturday morning.

    • A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.

    • The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.

    • The sentencing for three men convicted of helping lead and coordinate the COVID-19 protest blockade at Coutts, Alta., in 2022 has been delayed.

    • A 10-year-old boy from Lethbridge is being praised as a hero after a routine summer outing at the pool nearly turned tragic for his friend.

    • A man and woman have been charged after a Lethbridge ice creamery was broken into earlier this week. Staff arrived at Cookie Crimes, in the 300 block of Sixth Street South, just before 5:30 a.m. on Monday to discover the front window broken.

    • Overnight on Thursday as the community of Elliot Lake was resting to prepare for the upcoming Kraft Hockeyville celebrations, when vandals struck a building that has been top of mind for the northern Ontario city for more than a year.

    • Ontario Provincial Police remind the public that ā€˜a case is never closed until it is solved,ā€™ while highlighting the force's continued investigation of the 1996 disappearance of Melanie Ethier.

    • Sault residents may notice some commotion on the Algoma University campus over the next two weeks as a team conducts an archaeological search.

    N.L.

    Stay Connected
    Follow Ā鶹“«Ć½