Loblaws profits soaring as food prices and hunger spin out of control in Ontario

Much like its key competitor, Loblaws profits have soared in recent months, with the supermarket giant announcing another huge jump in earnings on Wednesday, just as CEO Galen Weston relinquishes his role at the company's helm.

In the third quarter of this fiscal year, Loblaw Companies Ltd. reported $18.27 billion in revenue and $621 million in profit, which mark growth of five per cent and just shy of 12 per cent, respectively, from the same period last year.

This is while food bank use has hit an all-time high in places like Toronto, and food inflation continues to outpace headline inflation, with outrageous prices spotted for everything from butter, eggs and meat to potato chips, baby food and spices.

Why would anyone choose to shop at Loblaws is beyond me. Every item on Loblaws grocery shelf is marked up twice the price of anywhere else

— Kassim Khan (@KassimK96507302) August 10, 2023

According to Statistics Canada's new Food Price Data Hub, "the price of groceries has risen more sharply than the all-items Consumer Price Index (CPI) since December 2021, with staple food items, such as bakery products, margarine and other edible oils, and dairy products and eggs, showing some of the largest price increases."

It's an issue that has been concerning enough to warrant investigation by the Competition Bureau of Canada and a study by the House of Commons Standing Committee on Agriculture and Agri-Food, for which Weston was called to testify earlier this year.

Though Weston — who in many ways has come to represent the nation's evil and arguably price-gouging grocery store oligopoly — announced he would be stepping down as president and CEO of Loblaw Companies Ltd. back in April, the change did not come into effect until this month.

And, he decided to use his last meeting in his long-time role to condemn those who say he, his family's company and other chains have been profiting off of inflation and driving food prices up higher than they should be.

Of course he is. As owner one of our 2 major grocery chains, he's found a way to blame supply increases while not paying farmers any more. Also, blaming inflation that is mostly caused by food price increases(awesome idea). F#ck us, right?

— The Soltesz (@TheSoltesz) November 24, 2022

As reported by the Star today, while releasing Loblaw's latest financial results, Weston asserted that grocers "are not the reason for high food prices," which he blames solely on the inflationary pressures impacting everyone right now.

Weston will be staying with the company as Loblaw's chairman and both chairman and CEO of George Weston Ltd., which owns the grocery subsidiary. The aptly named Per Bank, meanwhile, has taken over as Loblaw CEO.