Eat & Drink
Why Pay Double at Loblaws?

One thing I really don't get is why people continue to shop at Loblaws. With all the other grocery store options out there today - be it a local market in Kensington or a big box store like Costco - the Loblaws proposition just doesn't seem to add up.
For the last few months I've been buying a lot of groceries at the No Frills at Dundas and Lansdowne. It's a nice, clean store with great produce, plenty of parking and good prices. In fact, as far as I can tell, prices on pretty much everything are cheaper than at their sister chain Loblaws. (Loblaws and No Frills are both owned by Loblaw Company Limited)
While No Frills is theoretically a more downscale shopping experience than Loblaws, I fail to grasp what frills I would be getting at Loblaws that justify paying twice the price for a bunch of rapini. What's selling today for 97 cents at No Frills costs $1.99 at a Loblaws at St. Clair and Bathurst.


Discussion
37 Comments
Sort By Oldest First / Newest First
Subscribe
Loblaws is often double the price of the SAME PRODUCTS at No Frills. And Loblaws staff is as rude and without any customer service skills as No Frills clerks. I shop at Costco and Food Basics (cheap very version of Dominion - and I mean cheap LOL). Why waste money!
winners for the same pair of underwear.. sometimes, we need people to pay for a premium for things so we can have jobs.
If we don't go to No Frills for produce, we go to Chinatown.
I'm sure they use the same warehouses and everything, but I'm sorry, I'll pay the extra couple of bucks for the lack of infestation.
Then again, I'm sure statistics would favour me if I could get there more often - is there a no-frills type deal near the Harbourfront?
I would never, ever shop at Dominion, their prices are the steepest in town, and it just gets steeper in more expensive neighbourhoods (why is it necessary to individually wrap all produce in plastic? Why?) - Price chopper on the other hand, I'm all for.
The Price Chopper in Richmond Hill is wonderful, they have all the fun things a Asian grocer would (like a wide variety of dim sum, lots of bok choy, and meat cut Korean-barbeque-style) spliced in between all the white people basics. It's like a two for one deal.
I'm actually ok with Loblaws. They have some fun things (purple carrots!), and occasionally some good deals, and nice, clean, reasonably priced produce, in a wider variety than you could find at a No-Frills (lack of variety is probably my only complaint with No-Frills). They are also noticeably cheaper than Zehrs. If you've ever shopped outside of the GTA, you'll know that Zehrs holds a strange monopoly over groceries elsewhere in Ontario. They suck. Think the prices of Dominion, in a No-Frills atmosphere.
If you ever traverse far enough to pass by a Giant Tiger, do go in. Although they function best as a local convenience store. If they brought them to Toronto, I would lose my mind. Ninety-nine cent chocolate lava cakes! Instant dinner party!
I love Longos. They aren't cheap, but they have such yummy, unique things. Totally worth the mark up.
Any Italian or Asian grocery store, is a good grocery store.
I am almost as passionate about this, as I am about malls.
Loblaws has a distinct lack of smelly people, little boys peeing in corners, wilted and crappy vegatables or bad selections of products. They also have a fish and meat counter, and a good bakery.
Yes it costs more, but it's worth it to me to avoid the riffraff and unpleasantness.
The strategy behind the grocery chains all having premium and value 'banners' is that the big grocers want to get everyone's grocery dollar, no matter what their budget is. People shop in upscale stores partly because of the selection but also because of the atmosphere and the people they see themselves shopping with. You don't see the Baby Formula cans behind lock and key with the cigarettes at a Loblaws, but you do at a No Frills or Price Chopper. People who shop at value stores do so to stretch their dollar as far as it can go, because many of them can't spare much more. The grocers know they would have no chance getting people like that into a store that gives them a half decent profit margin, so they cut the price - they make take a loss on most sales at the value stores but they make it back at the premium stores. Everyone gets their food in the end. Think of it this way - if you shop at Dominion, Loblaws or Sobeys, you are essentially helping people save money at No Frills, Food Basics or Price Chopper.
I havent gone because I dont have a car, otherwise I would not set my foot in the place again. People are extremely rud eat that store, with old forest hills ladies and soccer moms sideswiping you the isles with no regard for anybody else in the store.
If it did not take me 3 hours to make my usual round trip to kensington and no frills at dufferin mall, I'd forget the store altogether.
If you want to pay a 50 per cent mark-up to feel bougie, that's your hang up.
Well, for starters, I can't believe someone described No Frills shoppers (ie. people with less money) as "riffraff."
<p>
Anyway, whether you value saving money vs nicer shopping environment is a personal choice. I much prefer to shop at No Frills, because the money you save really does add up.
<p>
However, I'd like to remind people that we live in Toronto - an incredible city for grocery shopping! There's Kensington, Chinatown, St. Lawrence Market, and tons of other neighborhoods that are loaded with fruit and veggie markets (like Bloor West), not to mention many other 'ethnic' markets such as those found in Little Korea and Little Italy. For those who live up north, there's places like T&T, as earlier pointed out, and if you travel into Mississauga, you'll find great clusters of cultural food shops. Sure, proximity and transporation are always issues, but if you're willing to travel a little bit, these places can, at the very least, provide an excellent supplement to your usual No Frills/Loblaws staple.
<p>
I personally love the fact that I can save tons of money, and find almost any ingredient that a recipe calls for, because of the awesome shopping possibilities in this city.
<p>
If you want more grocery shopping tips, check out my blog post at <a href=http://www.camilledeputter.com>www.camilledeputter.com</a>.
Many people also do not want to drive all over the city to save 1.00 on a head of lettuce. Many older people I have come across prefer to stick to the same grocery store. Even though the products are identical, I cannot imagine a senior fighting it out with families at No Frills and asking for a plastic bag. The money and big profits remain with the Baby Boomers and seniors and Loblaws knows that.
However, I do agree Loblaws is facing some challenges. It seems most of the traffic is leaning towards No Frills or Whole Foods. Being in the middle can lead to being nowhere.
But to answer why people would pay double at Loblaws vs. No Frills...
Not everyone shops based on price.
Dominion owns Food Basics
Its simple economics, playing with the consumer suplus. look it up
who wouldn't want to shop at LOBLAW operated stores.
Calgary, Alberta
bring out great {PC} products on a regular basis that aCtually taste grreat and has great value?
I think not.. dominion? heck no..
that would be Loblaws!
ha ha
And yes, it is all the same stuff at No Frills and Loblaws, as LCL has three main branches, two of which are most common: Hard Discount (No Frills - same products, lower price, less variety) and Great Foods (Loblaws, Zehr's, Fortino's - Variety and superior product at a higher price point.) If Loblaws isn't your cup of tea, don't shop there. It's really as simple as that. If you want more variety and higher quality product, it's your one stop shop; if all you're looking for is a good price and don't care as much about selection or quality, No Frills is the place to be.
Research it before you complain about it.
Here is another point of interest. Loblaw’s owns in excess of 60% of the retail food market in Canada. Loblaw’s also owns over 50% of the bread market in Canada of which is sold in all Loblaw’s outlets (Weston's Bakery). Bread is a staple in Canada like milk and is generally in every household and generates hundreds of millions of dollars in internal sales for Loblaw’s annually. As a company it treats it vender's (those who supply Loblaw’s with product to sell to consumers) disgracefully and without ethics. Then Loblaw’s insults the Canadian consumer by charging the highest possible prices for 90% percent of the product they sell in Loblaw’s retail outlets which are identical to products available at other retailers Wal-Mart, Metro, Sobey's etc...
Loblaw’s also forces venders to pay a mafia like protection fee which no other retailer in Canada would have the audacity to impose. They call this fee the C.O.G.S. it is a fee that is on top of the cost of manufacturing and agreed upon margins it is simply a service cost to be allowed to have exposure to 60% of the retail market share in Canada. This smacks of a monopoly and is highly uncompetitive practice.
The worst part is that the Canadian consumer never sees the benefit of the cost gauging that Loblaw’s undertakes on its venders, nor can the average consumer get information or see how the Canadian food chain is being manipulated to make Loblaw’s richer and food more unaffordable for some Canadians that can barely afford food to get by. It is simply pocketed.
Buying products from Loblaw’s stores encourages overall higher food prices in Canada. Send a message to Loblaw’s that you know that they are creating a monopoly in Canada and will not accept it. I for one will not be contributing to the uncompetitive business practices of Loblaw’s.
Companies including No Frills, Walmart Costco MAKE THEIR MONEY somewhere. Comparing obsucure items from one banner to another doesn't represent a true picture of who is cheaper.