MP calls for investigation into Loblaws scrapping 50 per cent discounts

After Loblaw confirmed it would end its 50 per cent discounts on soon-to-be expired items, an NDP MP has asked Canada's Competition Bureau to launch an investigation into the "anti-competitive" pricing strategies used by the country's grocery giants.

A letter states that BC NDP MP Alistair MacGregor asked the Competition Bureau that the investigation have "a specific focus on the recent decisions made by Loblaw."

"The implications of potential anti-competitive behaviour in this crucial sector of our economy are far-reaching, and I believe that a comprehensive inquiry is warranted to ensure the protection of Canadian consumers," he wrote.

Loblaw has come under fire for its decision to reduce its half-off discounts on nearly expired items to 30 per cent.

The grocery giant, which holds a nearly 30 per cent stake in the country's grocery industry through its various stores, said it was "moving toward a more predictable and consistent offering, including more consistency with [its] competitors."

Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, told Daily Hive earlier this week that the grocery giant's recent move reflects the company's inability to "read the room properly."

The cost of groceries remains high in Canada as the country's annual inflation rate jumped from 3.1 per cent to 3.4 per cent in December, according to the latest consumer price index report.

Charlebois said he was concerned with Loblaw's reasoning for trying to align its discount policies with its competitors.

In his letter, MacGregor noted that Loblaw's decision comes after Canada's grocery giants pledged to work towards stabilizing food prices after meeting with the feds late last year.

"The recent developments, particularly the reduction in discounts in tandem with other major retailers, raise questions about the industry's commitment to fostering fair and competitive practices," he wrote.

Loblaw has been the target of criticism over the past few years for several reasons, including deciding to end price freezes on NoName products, being accused of price gouging, and seeing its profits soar as Canadians continue to face a cost of living crisis.