The boycott movement against Loblaw over high food prices is expanding beyond just grocery stores to target various sectors of the mammoth corporation. Loblaw Companies Ltd. operates nearly two dozen store brands encompassing food, pharmacies, fashion, beauty, and financial services, including Shoppers Drug Mart and Real Canadian Superstore. The challenge for the movement is vast due to Loblaw’s extensive network, but organizers are determined to make an impact, with some already closing their PC bank accounts and shifting prescriptions to local pharmacists. The movement began on Reddit in May and has gained momentum since then.
Loblaw’s grocery division includes a wide range of stores such as Loblaws, No Frills, Freshmart, T&T Supermarket, Zehrs, and more, as well as an online delivery service called PC Express. In addition, the company owns Joe Fresh fashion brand, Esso and Mobil gas stations, Shoppers Drug Mart, and various health care, pharmacy, and cellular service operations. Its real estate investment trust, Choice Properties, owns and operates business parks and shopping centers across Canada, many of which are anchored by Loblaw’s grocery stores. The vast array of services offered by Loblaw poses a challenge for the boycott movement to effectively impact the company’s revenue.
Despite its diverse portfolio, Loblaw primarily generates revenue from its grocery stores, which accounted for 70 per cent of its retail sales in 2023. However, its drug and pharmacy retail segments have shown consistent growth, driving profits higher. PC Financial services, including bank accounts and credit cards, saw a 15 per cent increase in revenue from the previous year. While the focus of the boycott is on food prices, the movement acknowledges the broader impact of targeting other services provided by Loblaw, including pharmacies and financial services, on the company’s bottom line.
Industry Minister Francois-Philippe Champagne has acknowledged the challenge of increasing grocery store competition in Canada, citing a lack of lease space as a key hurdle. The r/loblawsisoutofcontrol movement aims to support independent grocers as an alternative to major corporate chains like Loblaw, Metro, and Empire. These corporate giants have established an economy of scale that prioritizes customer convenience, making it challenging for customers to switch to smaller, independent retailers. Despite the reach of Loblaw’s network, the boycott movement seeks to encourage solidarity among Canadians by promoting alternatives, such as supporting local food banks and sharing information about the boycott on social media.
Richard Powers, an associate professor at the University of Toronto’s Rotman School of Management, believes that the boycott movement against Loblaw and other large corporate grocers may be short-lived due to the convenience and accessibility they offer customers. Loblaw’s claim that 90 per cent of Canadians live within 10 kilometers of one of its stores underscores the company’s widespread presence in Canada. Johnson, one of the boycott organizers, emphasizes the importance of solidarity in the movement, suggesting ways for Canadians who may not be able to boycott directly to show support, such as writing to local MPs, donating to food banks, and spreading awareness on social media. The ongoing momentum of the boycott hinges on the collective efforts of individuals to challenge the dominance of corporate giants in the grocery and retail industry.
