Loblaw’s is once again leading the charge to reduce the amount they will pay suppliers by another 1.45% in the ongoing Canada-wide grocery price wars, that in the long run help nobody more than the consumer.
According to this morning’s GlobeInvestor, United Grocers Inc., a buying group for retailers ranging from Montreal-based Metro Inc. to Jim Pattison’s Overwaitea Food Group, and London Drugs has written to suppliers with demands to match whatever rate they offer to Loblaw.
The mainstream grocery stores, including the Overwaitea Save-On group locally, continue to feel the heat from discount giants Costco and Wal-Mart, who steal business from the traditional grocery stores on an ongoing basis, making the demand on suppliers absolutely necessary to maintain revenue targets.
Darryl Jones, head of the Overwaitea Food Group says they will follow Loblaw’s lead in order to keep the costs of groceries down, while maintaining their margins and if not offered the same discount, will unilaterally deduct 1.45% from supplier’s invoices beginning in September.
Meanwhile, the big winners in all this are consumers, whose dollars will put more groceries in the shopping cart as the major retailers duke it out.