A court order for Loblaws to hand over many company records to the Federal Competition Bureau is causing interest. The bureau evidently is concerned that the big grocer’s business practices in dealing with suppliers represent a threat to the open market. It’s about how much you pay for food and whether it can reasonably be said to be too much. For Loblaws and the other giant retailer Sobey’s, is will be about margins. That’s where brand names like Silk soy beverage get squeezed off the shelf at Loblaws. It’s a popular product but Loblaws thinks it can make more money by using the shelf space for something else. There is lots of competition for Loblaws, a sure force for keeping prices down. There are curious anomalies too. Like Dole non-organic bananas at 69 cents per pound at the high-end Summerhill Market, eight cents less than at Loblaws at 301 Moore where the price is 77 cents a pound. Go figure. The Toronto Star quotes an industry lobby source, Gary Sands, as saying: “We think this investigation underscores the need for a code of conduct in Canada to govern the grocery industry.” A nice idea but does it inspire much confidence? The bureau meanwhile says it has determined that Loblaws practices with manufacturers and suppliers may “impact the incentives and conduct of suppliers to Loblaw and the ability of other retailers to compete vigorously with Loblaw, particularly on price and product selection.” That smells a bit like restraint of trade, which is the bureau’s main bete noire. One thing is certain, there is enormous competition in South Bayview for your grocery dollars. The newly renovated Metro has a dazzling array of food. Whole Foods is set to open at 1860 Bayview Ave. next year. Longo’s is an aggressive promoter of its Leaside Village store and Rowe Farm Meats on Bayview is now selling fish. Sobey’s is ever-present and Summerhill Market has two fine stores. Got enough choice?
