Loblaw Freezes No Name Brand Prices

Canadian grocer provides shoppers with relief from escalating food costs

10/17/2022

Loblaw Co.'s price freeze is occurring in more than 2,400 stores, including Loblaws, Zehrs, Real Canadian Superstore, no frills, T&T, Atlantic Superstore, Maxi, and Shoppers Drug Mart.

Loblaw Cos. Ltd has unveiled a price freeze on more than 1,500 no name brand items to provide grocery-bill predictability to Canadians facing high food inflation. The private label brand is sold in more than 2,400 stores, including Loblaws, Zehrs, Real Canadian Superstore, no frills, T&T, Atlantic Superstore, Maxi, and Shoppers Drug Mart.

Food prices have risen rapidly over the past year, with increased suppliers’ costs due to fuel, labor, weather and global conflict, which are passed to retailers, and have been recently reflected on grocery shelves. However, rising prices at the shelf may slow in the coming year because a majority of CPG manufacturers and retailers believe that price points are “more important” in today’s marketplace, and fewer than 40% of product makers plan to increase their list price in the first half of 2023, according to a report by Advantage Sales, a division of Advantage Solutions.

In a Oct. 17 email to millions of its PC Optimum loyalty members, Loblaw President and Chairman Galen Weston wrote: “Anyone who regularly visits the grocery store knows that over the past year the cost of food has increased rapidly. … Maddeningly, much of this is out of our control. … That’s why, to help Canadians hit the brakes on food inflation, we are focusing on what is in our control. Starting today, we’re freezing prices of all no name products — more than 1,500 grocery essentials, sold in stores across the country – until Jan. 31, 2023.”

The no name brand is Canada’s second-largest food brand, and according to the company, is already offering average savings of 25% against comparable name brands. Until January 2023, consumers can purchase a wide assortment of grocery and household essentials under the no name brand, including apples, potatoes, butter, eggs, cheese, rice, pasta, toilet paper and paper towels.

Weston also indicated that the company will continue to lower prices in the weeks ahead through the PC Optimum loyalty program. This year, the PC Optimum program is on track to provide members with more than $1 billion worth of loyalty points, more than ever before. PC Optimum has more than 18 million members.

Loblaw Cos. Ltd. operates nearly 2,500 stores and national e-commerce options in Canada, with more than 190,000 full- and part-time employees. The Brampton, Ontario-based company is No. 11 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.