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The investigation into Loblaw’s pricing practices with its suppliers will continue, despite the grocery chain’s plans to stop its supplier pricing rules.
The Globe and Mail reported that the Competition Bureau will continue its inquiry into Loblaw’s pricing strategies and programs and “their impact on competition in the marketplace,” said Greg Scott, a bureau spokesman in a recent email.
Last week Loblaw said it would do away with supplier pricing rules, starting Jan. 3. The reason for the change was to streamline its operations and smooth relations with vendors, said the Globe and Mail.
Some industry insiders say the look into Loblaw’s practices is eating up as much as 25% of the bureau’s resources.
Sector experts have said that Loblaw’s practices included “charge backs” on previously paid invoices. Some suppliers end up losing money.
The current pricing issue isn’t just a Loblaw issue, but is common with other large retailers.
Gary Sands, vice-president of public policy at the Canadian Federation of Independent Grocers, said there needs to be a federal code of conduct, in the Globe report: “It requires that others be party to lasting changes.”
Another practice Loblaw said it will discontinue is its “ad collision” policy.
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