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Loblaw Promises ‘If It’s Not Fresh, It’s Free’

Food retailer introduces Fresh Promise program for produce
Marian Zboraj, Progressive Grocer
Loblaw Independent
The Fresh Promise aims to instill customer trust in all produce at Loblaw grocery stores across Canada.

Loblaw Cos. Ltd., has rolled out a new Fresh Promise to Loblaws, Independent, valu-mart, and Zehrs grocery locations. The program promises that if customers aren't satisfied with produce purchased in store, it will be replaced and refunded within seven days, no questions asked.

"We want customers to walk out of our stores every day feeling like they got the right value for them,” said Frank Gambioli, president, Loblaw Super Market division. “We know how much freshness and quality plays into value, and the Fresh Promise means that Canadians shopping in Loblaw grocery stores can be confident in the produce they are buying. Because if it’s not fresh, it’s free.”

The aim of the Fresh Promise is to instill consumer trust that all Loblaw’s produce has been selected and handled with meticulous care to maintain optimal freshness from farm to store shelf. According to the company, once the produce is on shelf, store teams will routinely check stock throughout the course of the day to ensure that it stays fresh for customers. 

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The Fresh Promise applies to any fresh produce item purchased at Loblaws, Independent, valu-mart, and Zehrs locations, both in store and online. If customers return their produce, they will need to present their original receipt of purchase at the Loblaw store where the produce originated. 

In other news, Loblaw recently apologized to Canadians for its role in a decade-old, industry-wide bread price-fixing arrangement and agreed to a total settlement of CAD $500 million, the largest antitrust settlement in Canadian history.

Loblaw’s results in its second quarter, ended June 15, reflect the impact of the settlement, which negatively affected net earnings by CAD $121 million. 

Other Q2 financial results include an increase in retail segment sales by CAD $187 million, or 1.4%. E-commerce sales grew by 14.2%. Adjusted EBITDA rose by CAD $73 million, or 4.5%. Diluted net earnings per common share were CAD $1.48, a decrease of 10 cents, or 6.3%. 

Brampton, Ontario-based Loblaw Cos. Ltd. is the largest retailer and private-sector employer in Canada. The company’s network of 2,500 stores and national e-commerce options completes more than 1 billion transactions each year. Loblaw is No. 10 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.

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