loblaws stock

People are upset with Loblaws for making so much money this year

Loblaws, Canada’s largest food retailer, had a surge of profit in its first quarter this year which has caused many people to speak up about the company's profit from inflation. 

Loblaws stated yesterday that its first-quarter profit was up to nearly 40 per cent compared to last year's period, gaining most of its growth from drugstore retailers like Shoppers Drug Mart and Pharmaprix through the sale of over-the-counter medications. 

Food sales have also increased, which has prompted experts to call for stricter regulations on grocery prices as well as new taxes on such increased, excess profits like the ones Loblaws is currently reporting. 

Sheila Block, a senior economist with the CCPA states that "the surge in profits at Loblaws shows that the coming year will see the continuation of a trend in which companies raise prices higher than they have to and profit from inflation."

In a response to these claims, Loblaws executives state that they price their grocery items based on competition rather than inflation, and that they are also suffering from the same supply-chain challenges and cost increases that other stores do. 

Still, people don't quite buy into Loblaws’s justifications for its profit surge, and are accusing the store of profiting from greed and inflation.

Loblaws has had no shortage of drama over the past while.

Earlier this year, shoppers found many of their aisles of stock from their favourite potato chip brand after Frito-Lay and Loblaws had a tussle.

They also have been subject to almost constant reminders of their central role in a bread price fixing scandal.

Lead photo by

Hector Vasquez

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