Shopping Discussion

Grocery prices start to rise as cost increases take hold

  • Last Updated:
  • Apr 16th, 2020 10:57 pm
[OP]
Banned
Dec 28, 2019
1021 posts
645 upvotes

Grocery prices start to rise as cost increases take hold

https://vancouversun.com/news/covid-19- ... take-hold/

A bunch lousy excuses include the weak canadian dollar, stress on the ability of the current supply chain and distribution system to catch up, which in turn further increases costs throughout the supply chain, COVID-19 related costs like installing Plexiglas barriers, rigorous and stringent in-store cleaning, enhanced safety protocols, increased wages and supplying hand sanitizer.

They don't talk about how much more business they are doing, as a result?
66 replies
Deal Expert
Aug 22, 2011
35520 posts
21572 upvotes
Center of Universe
Costco already increased prices on several essentials.
The bounty select a size use to go on sale for $17.99 and now it's on sale for $19.99.
Member
Dec 4, 2017
319 posts
286 upvotes
You missed out on the expensive floor stickers showing you to 'Stand Here'. Some just use simple duct tape indicators. While some hired graphic and printing companies. Lol

Some stores did hire security as crowd control.

People were hoarding toilet paper at regular prices! Crazy profits there.

Sadly, grocery prices will only go up higher with inflation and current Bank of Canada's low interest rate policy.
Member
Feb 5, 2015
355 posts
445 upvotes
Toronto
they might be doing more business but i dont see them making more profit. people are buying more of the items with smaller profit margins. (except toilet paper)
reduced shopping hours, reduced quantity of people allowed instore, increased salaries, cost of extra cleaning measueres etc.

the only added business i see is the spending done at restaurants, some of that is being spent on groceries now. people gotta eat.
Deal Addict
Jul 13, 2007
1029 posts
534 upvotes
Toronto
DavidC363 wrote: they might be doing more business but i dont see them making more profit. people are buying more of the items with smaller profit margins. (except toilet paper)
reduced shopping hours, reduced quantity of people allowed instore, increased salaries, cost of extra cleaning measueres etc.

the only added business i see is the spending done at restaurants, some of that is being spent on groceries now. people gotta eat.
It’s not just eating out meals that has stopped. Work cafeterias. “Business meetings”. Daycares. School cafeterias. University dorms. Conferences. Off-sites. Vacations. Weddings, baptisms. All on hold/cancelled. And a lot of people that (used to) work in food&beverage would eat free/discounted at work.

I’d estimate 20% of meals were prepared out-of-Home. Going 80%—-> 100% means a 25% increase for retail food sales.

While you can still get food delivered, a lot of people are tightening up their finances.

And since people are mostly at home, they’re creating more messes and not having their cleaner come in to clean it up either.
Deal Addict
Nov 10, 2018
3961 posts
4142 upvotes
Oh come on guys. I get that people 'want a good deal' on RFD, but seriously? This thread wins garbage thread of the year.

All grocery store chains not only faced a decrease in store hours but chose to pay their people more, for, you know, putting up with the rest of us and risking their lives? Front line staff, distribution staff, etc, all got raises (and good on them!).

Get over yourselves.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Deal Expert
Feb 7, 2017
15863 posts
13086 upvotes
Eastern Ontario
angryaudifanatic wrote: Oh come on guys. I get that people 'want a good deal' on RFD, but seriously? This thread wins garbage thread of the year.

All grocery store chains not only faced a decrease in store hours but chose to pay their people more, for, you know, putting up with the rest of us and risking their lives? Front line staff, distribution staff, etc, all got raises (and good on them!).

Get over yourselves.
This

Anyone who knows how the Grocery Game works knows that each & every item in the store has a price range ... that fluctuates between
SALE LOW & REGULAR (Medium to High range)
Depending on the season etc

Strategic Shoppers like myself consistently buy at the SALE LOW Mark
And if we should run out of something
Then we try to get it at its Regular Price at the Medium end

All I have seen so far, is most retailers eliminating the lower end ... SALES & Promos *
And moving to their REGULAR PRICE RANGES (Medium to High)

* This is also WHY we’ve seen some Retailers seemingly scrap their Flyers
They are off the Sales Cycle for now ... and just selling items at Regular Prices
To yes compensate for all the uncertainty / immediate higher costs

But seriously folks, this IS NOT PRICE GOUGING
It’s just not what we are used to that’s all
For that matter ... WAKE UP & LOOK AROUND
NOTHING IS WHAT WE ARE USED TO
THIS IS APRIL 2020
AND NOT FEBRUARY 2020

Everyone is doing the best they can

Ya’ll need to get with the program and ADJUST YOUR EXPECTATIONS

This ain’t nothing compared to WW II Rationing hardships ... this is a blip in time
Albeit not a pleasant one
Deal Fanatic
Nov 15, 2008
9451 posts
3751 upvotes
I think everyone is getting killed by logistics.

First we had the Natives and the environmentalists shutting down the rail. Containers piled up at the ports. Then North American retailers cancelled their orders out of China. There's no money in shipping a load of empty containers back to North America, so containers are piled up in China. All of North America now has a shortage of containers to ship product.

Ontario dairy producers normally ship half their product to stores, half to restaurants. Now they are trying to push 100% to stores. Logistics, receiving, stocking at the store end is preventing dairy from getting on the shelves, and then stores place a limit of 2. Artificial shortage. People want a lot of milk but they can't get it. At the same time the backup in the supply chain means farmers are now forced to pour their milk down the drain, creating a real shortage.
Deal Addict
User avatar
May 22, 2016
2390 posts
604 upvotes
Ontario
Reduced hours mean nothing to their profits. The store are busy the whole time they are open. Mondays look like the weekend in the grocery stores.
Deal Addict
Nov 10, 2018
3961 posts
4142 upvotes
webshark wrote: Reduced hours mean nothing to their profits. The store are busy the whole time they are open. Mondays look like the weekend in the grocery stores.
This MAY be true if they didn't have to restrict the number of people within a store. Use some common sense here.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Sr. Member
May 11, 2007
989 posts
731 upvotes
Kitchener
I would still not complain. At least we are lucky enough to still have full groceries. Plus the cost of operation has gone up and stores are hardly selling anything besides groceries and household essentials, which have a very thin margin.
Deal Fanatic
User avatar
Oct 22, 2007
9110 posts
2721 upvotes
London
While all of their costs are going up, I can assure you that they will take this opportunity to bump up their margins a smidgen as well.
Deal Addict
Nov 10, 2018
3961 posts
4142 upvotes
Ottomaddox wrote: While all of their costs are going up, I can assure you that they will take this opportunity to bump up their margins a smidgen as well.
If it were up to me, it'd be true supply and demand. Hoarding would not even exist anymore once TP costs $50/roll. So I wouldn't complain about bumping up margins a smidgen.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Deal Fanatic
User avatar
Dec 28, 2007
7957 posts
4578 upvotes
Alberta
Temporary increase in wages and perks like $50/week for employees. Someone has to pay for it.
Deal Fanatic
User avatar
Nov 13, 2010
7010 posts
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Scarborough
who is giving wage increases and bonuses ?
Not most stores I bet. Just 1 or 2 token stores to gather the sympathy of people
Deal Expert
Feb 7, 2017
15863 posts
13086 upvotes
Eastern Ontario
apnayloags wrote: who is giving wage increases and bonuses ?
Not most stores I bet. Just 1 or 2 token stores to gather the sympathy of people
Hardly a handful ...
Way more than you think

https://www.cbc.ca/news/canada/nova-sco ... -1.5506935

The Biggies represent a good lot of the chains / stores in Canada:

** PC+ Loblaws Corp Group Grocery Stores under various banners (close to 1000 locations)

Plus the Shoppers Drugmart / Pharmaprix stores, and Shoppers Home Healthcare Locations (1363 Locations)

As well as the Real Canadian LiquorStores (34 Locations)

https://www.loblaw.ca/en/about-us.html

** Empire Ltd / Sobey’s Group Grocery Stores under various banners (1547 Locations)

Plus Lawton’s Drugs (67 Locations) and the Sobey’s / Safeway Liquor Stores (10 Locations)

https://corporate.sobeys.com/at-a-glance/

** Metro Inc Grocery Stores under various banners (698 Locations)

Plus Jean Coutu Pharmacies (400+ Locations)

** Walmart Canada took a similar stance as the Big 3 Cdn Grocery Corps by offering bonuses to their Store & Supply Chain employees (408 Stores).
Jr. Member
Apr 29, 2015
177 posts
77 upvotes
Calgary, AB
angryaudifanatic wrote: Oh come on guys. I get that people 'want a good deal' on RFD, but seriously? This thread wins garbage thread of the year.

All grocery store chains not only faced a decrease in store hours but chose to pay their people more, for, you know, putting up with the rest of us and risking their lives? Front line staff, distribution staff, etc, all got raises (and good on them!).

Get over yourselves.
C'mon yourself. This is Loblaws we're talking about....you know? The company famous for price fixing for 14 years? Or have you already forgotten? https://www.theglobeandmail.com/report- ... e37387816/

It wouldn't surprise me if they moved on from price fixing to price gouging.
Deal Addict
Jan 29, 2017
2691 posts
1786 upvotes
Sobey's CEO when interviewed said he will not gauge but will protect margins.
Deal Fanatic
Dec 5, 2006
9495 posts
4702 upvotes
Markham
PointsHubby wrote: Hardly a handful ...
Way more than you think

https://www.cbc.ca/news/canada/nova-sco ... -1.5506935

The Biggies represent a good lot of the chains / stores in Canada:

** PC+ Loblaws Corp Group Grocery Stores under various banners (close to 1000 locations)

Plus the Shoppers Drugmart / Pharmaprix stores, and Shoppers Home Healthcare Locations (1363 Locations)

As well as the Real Canadian LiquorStores (34 Locations)

https://www.loblaw.ca/en/about-us.html

** Empire Ltd / Sobey’s Group Grocery Stores under various banners (1547 Locations)

Plus Lawton’s Drugs (67 Locations) and the Sobey’s / Safeway Liquor Stores (10 Locations)

https://corporate.sobeys.com/at-a-glance/

** Metro Inc Grocery Stores under various banners (698 Locations)

Plus Jean Coutu Pharmacies (400+ Locations)

** Walmart Canada took a similar stance as the Big 3 Cdn Grocery Corps by offering bonuses to their Store & Supply Chain employees (408 Stores).
Never worked in retail. So no knowledge on this: are those cashiers paid by hours? I mean if salary per hour increased while work hours decreased, then there is no extra salary cost for owners?

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