Canada loves a homegrown oligopoly
April 25, 2024 5:09 AM   Subscribe

From groceries to pharmacies to financial services, the Loblaw kingdom is hard to escape for Canadians. (slTheWalrus)

Yes yes, we know you will make a Bob Loblaw's Law joke.
posted by Kitteh (37 comments total) 11 users marked this as a favorite
 
The best/stupidest name they've got in their portfolio is zoomed by in the article as "Independent". The full name is "Your Independent Grocer".

"How do you do, fellow independent grocers?"
posted by clawsoon at 5:38 AM on April 25 [10 favorites]


The lede is almost completely buried: the Weston family's fortune is in real-estate and their future lies in controlling it; the consumer facing businesses like groceries, pharmacies etc are just profitable sidelines that squat on that real estate (and pay rent to the holding company).

How bad are the Westons? Ted Rogers : Galen Weston :: googol : googolplex

They need to go.
posted by seanmpuckett at 5:40 AM on April 25 [9 favorites]


It's like we've exported the Irving model from New Brunswick to the whole of Canada. Can't wait until the Loblaws start buying up media companies just like the Irvings...
posted by clawsoon at 5:56 AM on April 25 [6 favorites]


I've seen a lot of pushback on the May 1st boycott against Loblaws. I will say that if you live in smaller towns or cities, you don't really have options to shop anywhere else. (And before someone says, "but hey farmer's markets! ethnic markets!", talking to Canadians outside of city cores will show you this is never as easy nor as affordable as it sounds.)
posted by Kitteh at 6:04 AM on April 25 [4 favorites]


I am so baffled by the Canadian penchant for oligopolies, even if I understand the historical protectionist reasons some of them arose. Now they are a Kraken choking the lifeblood out of the country in most areas of life, and there is utter political unwillingness to do anything about it by either party. It's infuriating because the effects spill over into so many cascading effects from the lack of venture capital to the brain drain and when people do protest they protest covid masks.
posted by tatiana131 at 6:36 AM on April 25 [2 favorites]


It's infuriating because the effects spill over into so many cascading effects from the lack of venture capital to the brain drain

Canadian arts orgs get hurt by this too. Our government doesn't fund the arts to the degree that European countries do, and our 1%ers don't donate to the arts as much as their American counterparts do. So Canadian arts get screwed on both ends for funding.
posted by thecjm at 6:44 AM on April 25 [2 favorites]


In the St. Louis area we used to have a grocery chain called National Supermarkets. They were owned by Loblaw and their logo was literally the Loblaws logo just turned upside down so it looked like an N instead of an L. I freaked out the first time I visited Canada and saw a Loblaws.
posted by zsazsa at 7:01 AM on April 25 [9 favorites]


"I've seen a lot of pushback on the May 1st boycott against Loblaws."

Lack of realistic options is one thing, another is that the Metro and Sobeys chains aren't much better than the Westons. They're lucky in that Galen Weston has been drawing all the fire.
posted by Capt. Renault at 7:02 AM on April 25 [4 favorites]


and there is utter political unwillingness to do anything about it by either party.

More to the point, our Prime Minister-in-waiting has ties to Loblaws.
posted by monkeymike at 7:13 AM on April 25 [2 favorites]


My complete irritation at Amazon Prime now showing commercials aside, they've been showing an ad for Fizz, a cheap way to have a cellphone! (Unless you read the fine print: Fizz is just another subsidiary of an extant Big Phone here.)

Your phone/data plan? Run through Rogers or Telus or Bell, no matter what names they use.

Groceries? See above.

We really do love an oligopoly here under the guise of Keeping it Canadian. But that falls flat when certain Canadians use this protectionism to make themselves obscenely rich.
posted by Kitteh at 7:20 AM on April 25 [1 favorite]


but hey farmer's markets

But here's the thing: I live in Toronto. It is by far cheaper for me to shop at No Frills than it is at my weekly farmers' market (I'm close to Sorauren and Dufferin Grove). Why is this?! It's infuriating. I'd rather support the local guy, but I'm not going to do so at my own expense when money is already scarce. When I visit farmers' markets in other countries, the produce is substantially cheaper than the grocer. WTF?
posted by dobbs at 7:22 AM on April 25 [4 favorites]


My point exactly. People who say that don't understand that is not an option for everyone. I love a farmer's market myself, and we have a super dope one here in Kingston, but it can't fully replace my grocery shop at an affordable price.
posted by Kitteh at 7:26 AM on April 25 [1 favorite]


But that falls flat when certain Canadians use this protectionism to make themselves obscenely rich.

On the contrary, that was the whole point the entire time. Working as intended.
posted by aramaic at 7:39 AM on April 25 [4 favorites]


there's a choice.
You can choose NoName mobile plan or PC mobile plans.
Which both use Bell network .
posted by yyz at 7:41 AM on April 25 [1 favorite]


Lack of realistic options is one thing, another is that the Metro and Sobeys chains aren't much better than the Westons.

Yes. I've seen a number of boycott supporters say that they'll take their business to WalMart which is just... really not any better, ethically speaking. But the local options are all as expensive or more expensive than the Loblaws stores and they can't afford them.
posted by synecdoche at 7:52 AM on April 25 [1 favorite]


I wish I could prove something from this, but back around 2016-7, I used to see the late Galen Weston Sr bopping around a couple of times with that guy from Rebel News. Was he an investor? Who can say. It's on-brand from the bread stealing company.

(... thoughts of the meme of Galen Jr wearing the No Name yellow sweatshirt with the text photoshopped to read

die
mad
poors

...)
posted by scruss at 7:58 AM on April 25


I like seeing "the late" in front of the names of billionaires. It warms my heart.
posted by seanmpuckett at 8:00 AM on April 25 [4 favorites]


I was getting mad at folks mocking the boycott on my local subreddit, wondering why they were simping for billionaires, but now I understand we don't have much of a choice. When the billionaires run 90% of the grocery stores, you're not left with many options even if you hate Galen Weston and his ilk.
posted by Kitteh at 8:06 AM on April 25


our Prime Minister-in-waiting has ties to Loblaws.

...and Loblaws is slowly building a private health care network. Goodbye to public health care, Canada. PP will get many millions in kickbacks.
posted by CynicalKnight at 8:37 AM on April 25 [4 favorites]


I’m lucky to have options in Scarborough because we have so many international grocery stores (although some of them are chain owned…I was really sad when Arz got swallowed up.)

Farmers market produce costs a lot because a) small farm economics, b) market fees and c) the sheer transport/labour/opportunity costs. It does suck. I do a CSA farm share June-Oct and it is $90/week, which works out for my larger veggie forward family only because they have me planning the meals and training them on how to wash really kale and lettuce and leeks etc. that are coming straight from Real Dirt. There’s no packaging and I like the CSA model a lot, but as that van drops off every Tuesday I do wonder at the carbon impact a bit.

Even so, I end up at No Frills or Food Basics (Metro), and my neighborhood store is an “Independent.” The two Loblaw-owned are union shops at least. I try to buy loss leaders. I was in an actual Loblaws on the weekend for trout and the prices absolutely floored me…they had Diana BBQ sauce which is like, whatever quality, on sale 2 for $10. Like wtf! Shoppers has always been ridiculous although I’ll admit I will shop flyer specials on 20 points day. Because of playing the “take my information” game on points I haven’t paid cash for Xmas dinner in a few years.

I’m probably going to boycott in May, just because I want to see if the needle can move with consumer action. My guess is they’ll do something for a few months and then jack prices up again.

A reminder that if you’re Canadian please support your local food bank if you can. Like arts funding, we don’t have the school lunch support/food stamps like in the US or the proper income support like parts of the EU. The new breakfast program hasn’t rolled out either.
posted by warriorqueen at 8:41 AM on April 25 [3 favorites]


If only Bob Loblaw were still running the show.

Sorry. SORRY. I couldn't resist.
posted by Hildegarde at 8:55 AM on April 25


More to the point, our Prime Minister-in-waiting has ties to Loblaws.

And our current PM hangs out at Galen Weston’s private island on Georgian bay on vacation.
posted by rodlymight at 10:06 AM on April 25


In my old neighborhood, I lived near an independent supermarket and several smaller grocery stores, all within a couple of blocks of each other. I didn't really understand why people were so upset about price gouging -- prices definitely went up, but not my that much, I thought.

This year I moved to a new neighborhood. Now I'm a 5-minute walk from three different supermarkets. They're all owned by the same billionaire (not the Westons, a different branch of the oligopoly) ... and the prices at all three places are obscene. We're talking at least $1 higher on half the products I regularly buy. The owners say their costs have gone up, and yet somehow the independent places have managed to keep their prices way lower. Like, there's this bread I like from a local bakery that used to cost $6, and now it's over $8 at the billionaire's stores -- but the same loaf costs $7 at my old grocery store, and $6.50 at another independent place downtown. It's the same with beans, cheese, coffee, kale.... When half your shopping list is like that, it makes a difference.

What makes it especially galling is that one of the three billionaire-owned supermarkets used to be independent until a couple of years ago, and it was great! Then they got acquired, and their prices shot up and their selection got way worse. I don't shop there anymore.

So where do I go instead? We don't have those smaller grocery stores here because the rent is too damn high. There's a No Frills about 10 minutes away, and sometimes I go there, but (a) it's Loblaws and (b) their selection often isn't very good. There's a Korean specialty place that's good for produce, but it's missing other staples. Mostly I hop on a bus and go to yet another independent supermarket in another neighborhood where the prices are a bit better. None of these places has all the stuff on my list and different things are affordable at different places, so I have to split up my grocery shopping; it's exhausting and I'm eating worse because of it. I'm not in a food desert or anything, I am frankly spoiled for choice. But none of the choices are good. And it doesn't have to be this way.
posted by Gerald Bostock at 10:08 AM on April 25 [3 favorites]


I really enjoy his law blog, even if he doesn't speak Spanish.
posted by dances_with_sneetches at 10:18 AM on April 25


I'm planning to participate in the boycott in so far as my neighbourhood grocery store is in a different oligopoly and so is the discount grocer I can easily get to on the bus so I don't shop at Loblaws stores much to start with. I guess I'll have to stop buying a soda at Shoppers on my way to the glass studio.

I don't have a car, so when people are like 'go to the farmer's market' or 'shop in small, locally-owned stores', I'm like 'I'm sorry, but I don't have 4 hours to make that round trip on the bus in order to buy a couple of bags of things that aren't actually all of the things I need to make any given meal because those places aren't fully functioning grocery stores.' I buy what I buy where I buy it because those are the places I can actually get to and then get home from with groceries.

A new independent grocer is opening up across the street from my office once the building is built, and while I imagine if it ever becomes successful, it will get acquired by one of the big 3, in the mean time, that will give me another choice.
posted by jacquilynne at 10:20 AM on April 25 [2 favorites]


jacquilynne, I don't have a car either so my grocery trips are limited to what's around me: Food Basics, Metro. (Plus a variety of Asian supermarkets but they haven't gone full produce just yet; the student population is more of a grab and go scene.) I mean, I can boycott the Loblaws grocery empire simply by not living near one. I did move our prescriptions to small family-owned pharmacy instead of Shoppers though.
posted by Kitteh at 10:54 AM on April 25


An alternative to the Galens are the Farmers' coops. They have grocery stores in most western cities. Back east the farmers' coops focus on agricultural supplies. Of course, prices are higher at the Coops because the staff are unionized and the scale of the business is smaller.
posted by SnowRottie at 11:20 AM on April 25


In the 1960s, Safeway came north and expanded across western Canada. They undercut all prices until the competition (mostly small chains) folded, then increased all prices. They were fined under the Combines Act for this anti-competitive behavior, a million or two bucks, which was nothing compared to gaining all this market. The Canadian oligopolists were (briefly) a breath of fresh air.
posted by CCBC at 11:48 AM on April 25 [3 favorites]


our Prime Minister-in-waiting has ties to Loblaws.

To be honest I'm more concerned about his ties to Diagolon. But you know, pourqoui pas les deux.
posted by Ashwagandha at 12:20 PM on April 25 [5 favorites]




as someone who's lived in atlantic canada, the prairies, the west coast, the arctic, and upper canada let me tell you that tons of people, and the vast majority of people at the levers of power, think this is a caste based society here. people complain about oligopolies, but they see them as a normal thing that you can't affect. it's like complaining about the weather.
posted by LegallyBread at 12:46 PM on April 25 [1 favorite]


The grabbing hands grab all they can, all for themselves after all...
posted by elmono at 1:05 PM on April 25 [2 favorites]


I know I am supposed to be anti-Loblaws but as a Canadian expat living in Chicago dealing with the long-term Krogerfication of my local grocery store I really miss Loblaws. It's hit or miss whether my local grocery store has basic veg or salad greens. Even diet cola is sometimes hit or miss.

I do feel like sometimes the Canadian tendency to tolerate certain oligopolies results in okay outcomes (stable banking for instance) and sometimes terrible outcomes (cable/internet/mobile). I've been out of country for too long now to really know where Loblaws sits for the daily lived experiences but when I visit Ontario the Loblaws stores are still a wonder to me while American grocery stores here in Chicago seem to be in a steady decline.
posted by srboisvert at 6:06 AM on April 26


It's hit or miss whether my local grocery store has basic veg or salad greens. Even diet cola is sometimes hit or miss.

Loblaws' supply chain problems are significant enough that I regularly have conversations on the topic, and I am just a random grocery shopper who doesn't even normally shop at Loblaws. They have a reputation for gappy shelves with holes where things are supposed to be, but aren't.
posted by jacquilynne at 6:25 AM on April 26


I was trapped in a time vortex today, or possibly a parallel universe. A store where mainstream brands of soup, cereal, chips etc. were being sold at 30+% below current big grocer prices.

Apparently Dollarama is a portal to 2019.
posted by justsomebodythatyouusedtoknow at 6:56 PM on April 26 [1 favorite]


You want to watch those Dollarama specials, justsomebodythatyouusedtoknow. Companies like Lays make special packages for dollar stores, typically smaller than the regular ones.
posted by scruss at 10:53 AM on April 27


I always get the feeling the food on the shelves at Dollarama have been there since 2019.
posted by Clever User Name at 11:41 AM on April 27


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