As the online campaign to boycott businesses under Loblaw’s umbrella enters its second week, some independent grocery stores in Ontario have reported an uptick in sales as people seek out alternative shopping options in response to the boycott.
The boycott against grocery giant Loblaw’s stores started on May 1st, sparked by an online Reddit group that now boasts over 75,000 members.
Some grocery store owners in London, Ontario, have noted the effectiveness of the boycott campaign, as reported to CBC.
“The boycott started just a week ago, but we have indeed seen an increase in sales,” said Barbara Deakin, one of the managers at the London Food Co-op. “A few people have come in saying that they are seeking alternative grocery stores due to the boycott.”
Organizers of the boycott have called on Loblaw to lower prices by 15%, stop member-exclusive pricing, sign a code of conduct for grocery stores, and halt further dividend increases.
Deakin explained that the London Food Co-op, founded in 1970, charges members $40 annually, allowing them to save 10% more on their bills compared to non-members, with around 300 households currently subscribed.
“Last week, we had four to five new members signing up within a span of just a few days, which is quite significant for a two-day time frame,” Deakin remarked.
Sunripe Freshmarket operates two grocery stores in London and one in Sarnia.
“I can’t say for certain if it’s due to the boycott, but we did have a significant promotion last weekend, and our sales definitely saw an increase,” said Kysa Willemsen, manager of the three stores.
Kara Rignen, co-founder of Reimagine Co., another grocery store, mentioned that while the boycott has not yet led to a significant increase in foot traffic, the store is planning to leverage the opportunity to boost business.
“I’ve been posting on social media emphasizing our prices… which have remained relatively unchanged over the past four years,” she stated.
Rignen noted that about 75% of the store’s prices are the same as in 2020. Additionally, the store recently found a new supplier that helped lower costs for several key products.
“It’s clear that the crux of the Loblaw issue lies in how much prices have increased. If small stores like ours can maintain price stability over four years, why can’t corporate giants?” Rignen questioned.
While Loblaw and other grocery chains have reported increased profits, they have also faced criticism from consumers and politicians for high food prices.
Last week, Loblaw announced nearly a 10% growth in first-quarter profits compared to the same period last year and revealed plans to raise quarterly dividends by 15%. The company denied profiting from rising inflation, with Loblaw Chairman Galen Weston Jr. calling such criticisms “misleading.”
Loblaw Companies Limited, through its chain of stores including Loblaws, No Frills, Real Canadian Superstore, Valu-Mart, among others, accounts for nearly one-third of grocery sales in Canada.
It also owns brands like Shoppers Drug Mart, PC Financial, and Joe Fresh, Life, No Name, and President’s Choice, making its retail presence ubiquitous.