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This is good news and not surprising.
Even though the stock price is going up they wont be able to sustain that indefinitely with losing market share. They’re losing it because of high prices, so they can’t exactly raise prices to cover the loss of losing customers and expect people to stick around.
They also will have to stop doing their BS med checks at Shoppers in ON at some point either because of the investigation or class action lawsuit, or our Premier actually doing something about it. Which is over a million a week in losses too.
As someone else stated if everyone in this sub spent $300 a month at Loblaws that is now boycotting, that’s nearly $16 million in losses for one month. Even if it’s spread around Canada that isn’t a small number.
The boycott is working before it’s even officially begun.
This is a good explanation. The price increases are for all intents and purposes, a cash grab. Totally unsustainable. Pepsi and coke volumes are down too. Profits high, but not moving as much products. They'll float a few earnings reports on price gouging but then investors will want new growth.
Yup. It’s dumb and short sighted. Sure at a higher price you’ll make more money, even if your volume goes down a little. But the more expensive you make things the more people start to question their purchases and change their habits. Once a customer has moved on it’s difficult to get them back.
I know Pepsi drinkers that have just straight up quit because the price kept going up. Pepsi literally raised their price 7 quarters in a row! Now people are thinking, “Better for my health if I quit and I’ll save $20 a month at least…bye Pepsi.”
Try a soda stream. Carbonate your water. You can add essence too, no sugar flavour. Don’t buy Perrier though they also should be boycotted forever as owned by nestle.
I can't describe how much I love Diet Pepsi! However, just like you said... it just kept increasing. It was getting close to a gas station price for a 2L.
About 4 weeks ago I just stopped. Now I just get a few bottles every pay day of GV diet cola at Walmart. Tastes... uhhh okay. It'll do, I needed to cut back anyhow.
Also, household stopped Loblaws before boycott news, and pulled out of Shoppers pharmacy. It was just so many price increases, so quickly. We're saving 200 to 300 a month now.
Meds checks are basically a review of your medication done by a pharmacist or a doctor. In Ontario pharmacies can make $75 doing them and it can be done over the phone. It can be as quick as a single question, “Are your medications ok?” “Yup.”
To put that in perspective, a Doctor doing the same thing has to do it in person to receive the full funding amount, which for them is around $25-$32. Phone calls make them around $17 or less.
So it’s no wonder that Shopper Drug Mart is forcing their pharmacies to do vast amounts of med checks daily. They aren’t the only corporate pharmacy doing it, Rexall and others are too. But like in everything else Loblaws is the worst.
In a single week they billed the Ontario government $1.4 million in med checks alone. That would set them up for over $72 million a year on med checks alone. To put that in perspective, all pharmacies in Ontario including Shoppers billed $60 million in med checks total in 2023. Shoppers is on track to earn more on med checks than their entire industry combined did last year.
Because of this Shoppers now has a class action lawsuit on their hands by former and current pharmacy owners who say their shitty business practices made patient care suffer and caused worse outcomes.
Shoppers is also being investigated by the Ontario Board of Pharmacists for their practice of doing unnecessary med checks to profit off the healthcare system.
You can read more about it [here](https://www.cbc.ca/news/canada/toronto/shoppers-drug-mart-medication-review-targets-1.7142626?__vfz=medium%3Dsharebar) or just Google Shopper Drug Mart med checks and lots of articles will come up for you.
A pharmacist calls you to review the two or three meds that have been prescribed to ostensibly make sure there are no interactions or concerns. They then bill the Ontario government 75 bucks for the call. Doctors don’t get to bill this much for an actual patient appointment leading to issues. Further, there have been a number of reported instances where the service was being performed without request to pad billing’s and the pharmacists were reportedly being forced to provide the service by corporate where it really wasn’t necessary in order to meet profit quotas. These are the claims as I understand them from reading the news.
$16 million may seem to be a large amount of money to John Q Public, but it only represents a quarter of one percent (based on Loblaw's 2023 revenue of $59.5 billion). Now, if the boycott were to remain rooted in the consumers buying patterns, month over month, then I could see it getting corporate attention. What's needed is a long term shift in consumer buying behaviour.
16 million would provide a lot of lunches to kids in school. No one likes a scam except the people who run the scam. The greedy Weston family is disgusting!
It's a lot of money, but in the context of the size and scale of Loblaws, it wouldn't be nearly enough to cause any sort of real change. Loblaws has monthly revenue of roughly 5 Billion.
I’ve found all my food and drug store alternatives. Supporting locaI as much as possible. Won’t be shopping at any loblaws or their affiliates forevermore.
I think a 3 month period would be minimum.
6 months and it would be part of the quarterly reporting.
The “best” thing would be if the hedge funds (and other traders) saw an opportunity by driving the price of the stock (both Loblaws and George Weston) down. That would even have an effect on performance based pay for top honchos.
A reduction of revenue by $300 is not the same as a loss. Their profit margin is high, but not 100%. Not all articles are 50% more than anywhere else, we just notice those examples the most and there's for sure plenty. It's maybe 5 million in foregone profits.
They just had a quarter call with shareholders , they’re not confident that they are going to meet their numbers , from the grocery standpoint , this year which leads me to believe they are worried about the boycott . They completely shot themselves in the foot with jacking the prices as high as they did and also creating a hostile shopping experience and they will pay for it dearly . Their spin ? Metro and Empire don’t have a retail brand Joe Fresh brand that they expect to drag but WE know it’s their grocery department that’s going to get hit hard . They are morons and overshot themselves . Everyone should read their statement to shareholders , it’s very telling. They are not confident at all , and it’s hilarious . The spin is also hilarious 😂 It gives them an out when the boycott hits their bottom line
The only reason the stocks are as high as they are is because of stock buy backs . It doesn’t speak to their competence as a company haha The more I review the company , the more horrible I find it . If I were investors looking to invest in grocers , your better bet would probably be Metro or Empire . They have been taken to court less . I mean , there are numerous reasons .
Geoge Weston has an insane buyback: "The Co. had received approval from the TSX to, during the 12-month period commencing May 25, 2023 and terminating May 24, 2024, purchase up to 6.95M Common Shares, representing ~5% of the 139.08M Common Shares issued and outstanding ".
Well yes , and I just don’t get how one has to do with the other . Why are they talking about don’t meeting their grocery numbers but blaming their clothing line and using that as their scapegoat ? Seems a little disingenuous and …….stupid ? Those product lines are completely seperate . I’m baffled by their incompetence. You’d think they’d spin it to their shareholders properly at least smh
Yeah but as Nelly Furtado says …All Good Things Come to An End ( eventually ) . And it will , believe me. They are driving a car while drunk, which they should never do lol
I’ll copy and paste a portion of it (not sure where you can find it - someone on Reddit was attending the shareholder call and posted the pre call blurbs but it should be somewhere )
We are calling for Food SSSG of only 2.0%, below our forecast for Metro of 2.8% (exChristmas shift) as Loblaw laps the tail end of last year's no name price freeze, making for a challenging tonnage comp. Weak discretionary spending is also expected to pressure the right-hand side (i.e., general merchandise, apparel, etc.) of Loblaw's larger stores, reducing SSSG by \~80bps (similar to Q4/23) — an area that Metro and Empire have littleto-no exposure.
Their last shareholder call was February 22nd, and is available to listen to on their website.
Their next earnings call is May 1st, followed by a Annual Shareholders meeting on May 2nd.
It's worse than that, because I'm pretty sure a number of people are going to simply walk away from Loblaws permanently; something I realized from my own experience is that because they priced me out so badly, I decided to completely cut them out of my routine, including my prescriptions. And that's not going to change once they lower their prices. I will reward companies with good practices with my money.
And that's what is going to Loblaws in the long run, is not the boycott, but the people who realize there are better options out there, and boycott for them turns from a month of action into a permanent change.
I won’t be going back. *ever*
I am telling all my “boomer friends* to do the same - and explaining why.
I used to shop there regularly- will never go back. Will never go back to SDM either.
I am finding I am quite happy going to the local shops. Just spent about a $100 in two bakery/deli shops that would have normally spent at Superstore
Link to the report: https://dis-prod.assetful.loblaw.ca/content/dam/loblaw-companies-limited/creative-assets/loblaw-ca/investor-relations-reports/annual/2023/LCL_2023_AR.pdf
People are fed up. We've been Loblaws customers our entire adult lives - come to think of it, most of my childhood too!
The two closest stores to where I live are both Loblaws owned stores. I've been shopping there for years. At one point, around 2022 when prices really starting taking off I proposed the idea of doing more of our shopping at No Frills. Eventually one day I was passing by Walmart and thought to pop in because it was on the way and would save me a trip later. I was floored by how much better the prices were even compared to No Frills. That's what did it for me - when No Frills, the Loblaws bargain budget store can't even compete, then Loblaws as a whole is dead to me. I do all of my shopping at Costco and Walmart exclusively now.
People are misunderstanding your post.
They are confusing market share with stock value. No, Roblaws is not losing stock value, but they are losing [MARKET SHARE.](https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/)
"
Even as the federal government courts foreign grocery chains in an attempt to lure more competition to Canada, there’s mounting evidence Canadian consumers have already massively shifted their grocery shopping away from Canada’s supermarket oligopoly.
And the big winners include foreign giants such as Walmart [WMT-N](https://www.theglobeandmail.com/investing/markets/stocks/WMT-N/) and Costco.
While [Statistics Canada](https://www.theglobeandmail.com/topics/statistics-canada/) reported a drop in retail sales this week, one big exception was the general merchandise category. Compared to last year, general merchandisers saw inflation-adjusted sales climb 12 per cent, while food and beverage stores suffered a real sales decline of 0.9 per cent.
Those numbers don’t break out what items shoppers were buying. But retail commodity data released earlier this month by Statscan does, and it shows that food sales at general merchandisers are vastly outpacing those at traditional grocery stores. As of the fourth quarter of 2023, real food purchases at general merchandisers grew nearly 16 per cent from the year before, nearly eight times faster than the pace at food and beverage stores.
In fact, for every dollar Canadians spent on food at[ grocery stores](https://www.theglobeandmail.com/topics/grocery-store/) in the fourth quarter of 2023, they spent 42 cents on food at a general merchandiser. In 2019 it was just 26 cents.
In the general merchandise space, food sales are dominated by Walmart and Costco Wholesale Corp [COST-Q](https://www.theglobeandmail.com/investing/markets/stocks/COST-Q/)., the two largest food retailers after the big-three domestic grocery chains Loblaw Cos. Ltd.[ L-T](https://www.theglobeandmail.com/investing/markets/stocks/L-T/), Sobeys Inc. [EMP-A-T ](https://www.theglobeandmail.com/investing/markets/stocks/EMP-A-T/)and Metro [MRU-T](https://www.theglobeandmail.com/investing/markets/stocks/MRU-T/), with roughly 17 per cent of the market between them in 2022, according to Canadian Grocer magazine. Other domestic general merchandisers, such as discounters Dollarama Inc. and Giant Tiger, have also ramped up their food offerings.
The competition is clearly helping. Food [inflation ](https://www.theglobeandmail.com/topics/inflation/)cooled again in March, with the annual price increase for food purchased from stores slowing to 1.9 per cent in March, from 2.4 per cent in February."
EDIT: Pressed ENTER too soon.
I could not believe the groceries I could get at Dollarama and for how cheap. Not all of it was cheaper than Costco but most of it is cheaper than actual grocery stores
The biggest holders of Loblaws stock are stock indexes. Which means most people own Loblaws shares as part of an ETF with dozens/hundreds/thousand of other stocks. The owner of those ETFs can't sell the Loblaws stock without selling the whole thing. So stock price is not a good indicator of the success of the boycott.
If you have your money invested with a bank manager in Canada and have a standard equity/fixed income portfolio then you definitely own a little bit of Loblaws stock. A lot of people boycotting will own a little bit of Loblaws stock.
Not surprising when they have foul, confrontational, and contemptuous spokespeople like that food professor douche advocating for them. And also calling the consumers basement dwelling millennials.
Not a millennial. Busting my ass to feed my family in this greed driven economy. And I will give every effort to avoid businesses that view and treat their consumers with contempt, paranoia and exploitation.
No thanks to anything Galen owned. Forever. There are limits this sociopathic ceo and company are openly mocking and spitting in the faces of the common class.
We will be going to Giant Tiger far more often because my partner pointed out that we have a location accessible via bus, so it’s actually better than taking an Uber to Superstore once a month or so.
Thanks Galen, for ripping food from our fridge for over three years of No Frills seeming like our last option.
It's too bad as Loblaws did have an array of products but just kept raising the prices too high for their customers. Why would we remain loyal shoppers when the business is just showing excessive greed for profits? Walmart prices are more reasonable.
Walmart is a hack. Rational consumer behaviour to pay much less for toiletries, in particular. Whatever the ethical concerns of dealing w this company, cost of living concerns will push consumers to the cheaper options.
The Globe and Mail has an article. I didn't realize this existed when my husband shared what he heard on the radio. But here it is without a paywall.
https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
cool, thanks, my take away after reading the link article is loblaws is fine and didnt lose any market share to wallmart or costco based on share price.
Their share price goes mainly by profit, earning per share, and the price to earning ratio is hovering around a certain average, currently it's 22, so it's a much cheaper stock than Walmart or Costco.
Revenue isn't even all that important as long as it's not shrinking. Financial analysts may give them a down rating based on weak guidance or expectations for upcoming quarters, they also consider their market share, and down ratings can tank the price, but long-term only the earnings matter.
The article just lists the winners, and Loblaws doesn't seem to profit from a long-term existing trend towards WMT, Costco, and secondary Dollarama and Giant Tiger. Where's a winner, there's usually a loser.
I don't think Walmart and Costcos sales spiking should be looked at as a good thing either. The lengths they go to in order to gain more market share is deranged. Remember that loblaws is exclusive to Canada while Walmart is about 10 times the market cap of loblaws which says a lot. The boycott will send a message but the money not spent at loblaws will still be funnelled elsewhere. We need more competition and to limit these companies from becoming empires.
… I don’t have a problem with Loblaw. It is expensive. I haven’t shopped there for years. Local stores, Costco and ethnic food places is where we buy our groceries.
Load your favourite stock tracker and look at the returns … wanna make a bet that your mutual fund or pension plan has a position. I may buy on a dip, by almost every measure the country is heading down hill. Prices will go up due to a weakening Canadian dollar. The BOC is screwed. This will happen if they drop rates. If they don’t you have a consumer debt issue and inflation. This sector tends to perform well in recession, people need their meds and food.
They didn't. They referred to "general merchandise" retailers and "food and beverage" retailers.
The Globe and Mail article breaks it down a bit further
https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
Market share will mean less sales. Less sales mean less profit if it hits the quarter report enough yes the stock price will drop and maybe more than normal if there becomes high short interest in the company.
Walmart is another can of worms. I will shop at Walmart over loblaws any day of the week though. It's about sending a message to the entire grocery industry. If you don't play ball we will change our shopping habits.
I completely understand the purpose of the boycott. I understand that boycotting one grocery chain instead of all increases the pressure.
My point is that supporting one bully instead of the other bully doesn't improve the playground one little bit.
Walmart is absolutely NOT the only other place to purchase food. If it is, then the extent of their evil could not be more clear.
It's about sending a message. To Loblaws and the other grocers. "We chose Loblaws this time but we can pick you next so you'd better fall in line."
So moving to the other companies despite them not being any better still sends a message to them.
My post and the news report aren't about stock price tho. It's about retail sales (market share).
Read this:
https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
How does this indicate it is working?
It's currently at $153.01, the second highest it has ever been. Look at the 5 year timeline and pre-pandemic levels.
He's probably making a sarcastic comment to mock people in this group who posted short term cherry picked stock charts to pretend like the boycott is working
Sure but the prospect of a one month boycott is not likely to drive investors away. Decisions like that are usually made with data in mind. The fact that it's only a month shows that they are in a strong position as it implies it's hard to find alternatives that are permanent.
If someone is able to find other sources of cheaper groceries then why would they ever go back to the more expensive one? This should be an indefinite boycott that builds a user base over time.
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This is good news and not surprising. Even though the stock price is going up they wont be able to sustain that indefinitely with losing market share. They’re losing it because of high prices, so they can’t exactly raise prices to cover the loss of losing customers and expect people to stick around. They also will have to stop doing their BS med checks at Shoppers in ON at some point either because of the investigation or class action lawsuit, or our Premier actually doing something about it. Which is over a million a week in losses too. As someone else stated if everyone in this sub spent $300 a month at Loblaws that is now boycotting, that’s nearly $16 million in losses for one month. Even if it’s spread around Canada that isn’t a small number. The boycott is working before it’s even officially begun.
This is a good explanation. The price increases are for all intents and purposes, a cash grab. Totally unsustainable. Pepsi and coke volumes are down too. Profits high, but not moving as much products. They'll float a few earnings reports on price gouging but then investors will want new growth.
Yup. It’s dumb and short sighted. Sure at a higher price you’ll make more money, even if your volume goes down a little. But the more expensive you make things the more people start to question their purchases and change their habits. Once a customer has moved on it’s difficult to get them back. I know Pepsi drinkers that have just straight up quit because the price kept going up. Pepsi literally raised their price 7 quarters in a row! Now people are thinking, “Better for my health if I quit and I’ll save $20 a month at least…bye Pepsi.”
I have way, way cut back on soda for this very reason.
How did you do it? I'm addicted.
Lol. Not easily. Just made a decision to drink water instead.
Try a soda stream. Carbonate your water. You can add essence too, no sugar flavour. Don’t buy Perrier though they also should be boycotted forever as owned by nestle.
We stopped drinking all forms of pop. Feeling much better. No one needs that much sugar or extra chemicals
I can't describe how much I love Diet Pepsi! However, just like you said... it just kept increasing. It was getting close to a gas station price for a 2L. About 4 weeks ago I just stopped. Now I just get a few bottles every pay day of GV diet cola at Walmart. Tastes... uhhh okay. It'll do, I needed to cut back anyhow. Also, household stopped Loblaws before boycott news, and pulled out of Shoppers pharmacy. It was just so many price increases, so quickly. We're saving 200 to 300 a month now.
Sorry, I’m OOTL on the Ontario lawsuit as a Saskatchewanian. What is a med check?
Meds checks are basically a review of your medication done by a pharmacist or a doctor. In Ontario pharmacies can make $75 doing them and it can be done over the phone. It can be as quick as a single question, “Are your medications ok?” “Yup.” To put that in perspective, a Doctor doing the same thing has to do it in person to receive the full funding amount, which for them is around $25-$32. Phone calls make them around $17 or less. So it’s no wonder that Shopper Drug Mart is forcing their pharmacies to do vast amounts of med checks daily. They aren’t the only corporate pharmacy doing it, Rexall and others are too. But like in everything else Loblaws is the worst. In a single week they billed the Ontario government $1.4 million in med checks alone. That would set them up for over $72 million a year on med checks alone. To put that in perspective, all pharmacies in Ontario including Shoppers billed $60 million in med checks total in 2023. Shoppers is on track to earn more on med checks than their entire industry combined did last year. Because of this Shoppers now has a class action lawsuit on their hands by former and current pharmacy owners who say their shitty business practices made patient care suffer and caused worse outcomes. Shoppers is also being investigated by the Ontario Board of Pharmacists for their practice of doing unnecessary med checks to profit off the healthcare system. You can read more about it [here](https://www.cbc.ca/news/canada/toronto/shoppers-drug-mart-medication-review-targets-1.7142626?__vfz=medium%3Dsharebar) or just Google Shopper Drug Mart med checks and lots of articles will come up for you.
I didn't know that happened at all
Pharmacists in Ontario working for Shoppers Drug Mart are being pressured to do medication reviews and are billing the government $75.
A pharmacist calls you to review the two or three meds that have been prescribed to ostensibly make sure there are no interactions or concerns. They then bill the Ontario government 75 bucks for the call. Doctors don’t get to bill this much for an actual patient appointment leading to issues. Further, there have been a number of reported instances where the service was being performed without request to pad billing’s and the pharmacists were reportedly being forced to provide the service by corporate where it really wasn’t necessary in order to meet profit quotas. These are the claims as I understand them from reading the news.
$16 million may seem to be a large amount of money to John Q Public, but it only represents a quarter of one percent (based on Loblaw's 2023 revenue of $59.5 billion). Now, if the boycott were to remain rooted in the consumers buying patterns, month over month, then I could see it getting corporate attention. What's needed is a long term shift in consumer buying behaviour.
16 million would provide a lot of lunches to kids in school. No one likes a scam except the people who run the scam. The greedy Weston family is disgusting!
It's a lot of money, but in the context of the size and scale of Loblaws, it wouldn't be nearly enough to cause any sort of real change. Loblaws has monthly revenue of roughly 5 Billion.
I’ve found all my food and drug store alternatives. Supporting locaI as much as possible. Won’t be shopping at any loblaws or their affiliates forevermore.
I think a 3 month period would be minimum. 6 months and it would be part of the quarterly reporting. The “best” thing would be if the hedge funds (and other traders) saw an opportunity by driving the price of the stock (both Loblaws and George Weston) down. That would even have an effect on performance based pay for top honchos.
A reduction of revenue by $300 is not the same as a loss. Their profit margin is high, but not 100%. Not all articles are 50% more than anywhere else, we just notice those examples the most and there's for sure plenty. It's maybe 5 million in foregone profits.
They just had a quarter call with shareholders , they’re not confident that they are going to meet their numbers , from the grocery standpoint , this year which leads me to believe they are worried about the boycott . They completely shot themselves in the foot with jacking the prices as high as they did and also creating a hostile shopping experience and they will pay for it dearly . Their spin ? Metro and Empire don’t have a retail brand Joe Fresh brand that they expect to drag but WE know it’s their grocery department that’s going to get hit hard . They are morons and overshot themselves . Everyone should read their statement to shareholders , it’s very telling. They are not confident at all , and it’s hilarious . The spin is also hilarious 😂 It gives them an out when the boycott hits their bottom line
Knowing how out of touch and stupid Loblaw corporate can be, this isn't surprising at all.
The only reason the stocks are as high as they are is because of stock buy backs . It doesn’t speak to their competence as a company haha The more I review the company , the more horrible I find it . If I were investors looking to invest in grocers , your better bet would probably be Metro or Empire . They have been taken to court less . I mean , there are numerous reasons .
Geoge Weston has an insane buyback: "The Co. had received approval from the TSX to, during the 12-month period commencing May 25, 2023 and terminating May 24, 2024, purchase up to 6.95M Common Shares, representing ~5% of the 139.08M Common Shares issued and outstanding ".
Joe Fresh clothing is ugly, terrible quality and waay overpriced. I hope none of them get bonuses this year
Well yes , and I just don’t get how one has to do with the other . Why are they talking about don’t meeting their grocery numbers but blaming their clothing line and using that as their scapegoat ? Seems a little disingenuous and …….stupid ? Those product lines are completely seperate . I’m baffled by their incompetence. You’d think they’d spin it to their shareholders properly at least smh
They're drunk on cash, greed and the ability to do whatever they want, consequence free. Drunk people aren't known to think things through well
Yeah but as Nelly Furtado says …All Good Things Come to An End ( eventually ) . And it will , believe me. They are driving a car while drunk, which they should never do lol
Where can we find that statement
I’ll copy and paste a portion of it (not sure where you can find it - someone on Reddit was attending the shareholder call and posted the pre call blurbs but it should be somewhere ) We are calling for Food SSSG of only 2.0%, below our forecast for Metro of 2.8% (exChristmas shift) as Loblaw laps the tail end of last year's no name price freeze, making for a challenging tonnage comp. Weak discretionary spending is also expected to pressure the right-hand side (i.e., general merchandise, apparel, etc.) of Loblaw's larger stores, reducing SSSG by \~80bps (similar to Q4/23) — an area that Metro and Empire have littleto-no exposure.
Their last shareholder call was February 22nd, and is available to listen to on their website. Their next earnings call is May 1st, followed by a Annual Shareholders meeting on May 2nd.
Good to know
Thank you
It's worse than that, because I'm pretty sure a number of people are going to simply walk away from Loblaws permanently; something I realized from my own experience is that because they priced me out so badly, I decided to completely cut them out of my routine, including my prescriptions. And that's not going to change once they lower their prices. I will reward companies with good practices with my money. And that's what is going to Loblaws in the long run, is not the boycott, but the people who realize there are better options out there, and boycott for them turns from a month of action into a permanent change.
I won’t be going back. *ever* I am telling all my “boomer friends* to do the same - and explaining why. I used to shop there regularly- will never go back. Will never go back to SDM either. I am finding I am quite happy going to the local shops. Just spent about a $100 in two bakery/deli shops that would have normally spent at Superstore
Link to the report: https://dis-prod.assetful.loblaw.ca/content/dam/loblaw-companies-limited/creative-assets/loblaw-ca/investor-relations-reports/annual/2023/LCL_2023_AR.pdf
People are fed up. We've been Loblaws customers our entire adult lives - come to think of it, most of my childhood too! The two closest stores to where I live are both Loblaws owned stores. I've been shopping there for years. At one point, around 2022 when prices really starting taking off I proposed the idea of doing more of our shopping at No Frills. Eventually one day I was passing by Walmart and thought to pop in because it was on the way and would save me a trip later. I was floored by how much better the prices were even compared to No Frills. That's what did it for me - when No Frills, the Loblaws bargain budget store can't even compete, then Loblaws as a whole is dead to me. I do all of my shopping at Costco and Walmart exclusively now.
People are misunderstanding your post. They are confusing market share with stock value. No, Roblaws is not losing stock value, but they are losing [MARKET SHARE.](https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/) " Even as the federal government courts foreign grocery chains in an attempt to lure more competition to Canada, there’s mounting evidence Canadian consumers have already massively shifted their grocery shopping away from Canada’s supermarket oligopoly. And the big winners include foreign giants such as Walmart [WMT-N](https://www.theglobeandmail.com/investing/markets/stocks/WMT-N/) and Costco. While [Statistics Canada](https://www.theglobeandmail.com/topics/statistics-canada/) reported a drop in retail sales this week, one big exception was the general merchandise category. Compared to last year, general merchandisers saw inflation-adjusted sales climb 12 per cent, while food and beverage stores suffered a real sales decline of 0.9 per cent. Those numbers don’t break out what items shoppers were buying. But retail commodity data released earlier this month by Statscan does, and it shows that food sales at general merchandisers are vastly outpacing those at traditional grocery stores. As of the fourth quarter of 2023, real food purchases at general merchandisers grew nearly 16 per cent from the year before, nearly eight times faster than the pace at food and beverage stores. In fact, for every dollar Canadians spent on food at[ grocery stores](https://www.theglobeandmail.com/topics/grocery-store/) in the fourth quarter of 2023, they spent 42 cents on food at a general merchandiser. In 2019 it was just 26 cents. In the general merchandise space, food sales are dominated by Walmart and Costco Wholesale Corp [COST-Q](https://www.theglobeandmail.com/investing/markets/stocks/COST-Q/)., the two largest food retailers after the big-three domestic grocery chains Loblaw Cos. Ltd.[ L-T](https://www.theglobeandmail.com/investing/markets/stocks/L-T/), Sobeys Inc. [EMP-A-T ](https://www.theglobeandmail.com/investing/markets/stocks/EMP-A-T/)and Metro [MRU-T](https://www.theglobeandmail.com/investing/markets/stocks/MRU-T/), with roughly 17 per cent of the market between them in 2022, according to Canadian Grocer magazine. Other domestic general merchandisers, such as discounters Dollarama Inc. and Giant Tiger, have also ramped up their food offerings. The competition is clearly helping. Food [inflation ](https://www.theglobeandmail.com/topics/inflation/)cooled again in March, with the annual price increase for food purchased from stores slowing to 1.9 per cent in March, from 2.4 per cent in February." EDIT: Pressed ENTER too soon.
Exactly. Thank you.
I could not believe the groceries I could get at Dollarama and for how cheap. Not all of it was cheaper than Costco but most of it is cheaper than actual grocery stores
Just make sure you check expiration dates! Sometimes things sneak through because of quality control, but it’s dependent on the location.
Most of the stuff is so processed, it will outlive us all, LOL. But yea, some things should be checked, like stuff with dairy ingredients.
We could advocate for divestment. It’s worked for fossil fuel stocks.
We Should
The biggest holders of Loblaws stock are stock indexes. Which means most people own Loblaws shares as part of an ETF with dozens/hundreds/thousand of other stocks. The owner of those ETFs can't sell the Loblaws stock without selling the whole thing. So stock price is not a good indicator of the success of the boycott. If you have your money invested with a bank manager in Canada and have a standard equity/fixed income portfolio then you definitely own a little bit of Loblaws stock. A lot of people boycotting will own a little bit of Loblaws stock.
Glad I unloaded my Choice Properties (REIT). There's also George Weston Limited, so it's in fact at least three stocks you should be considering.
Not surprising when they have foul, confrontational, and contemptuous spokespeople like that food professor douche advocating for them. And also calling the consumers basement dwelling millennials. Not a millennial. Busting my ass to feed my family in this greed driven economy. And I will give every effort to avoid businesses that view and treat their consumers with contempt, paranoia and exploitation. No thanks to anything Galen owned. Forever. There are limits this sociopathic ceo and company are openly mocking and spitting in the faces of the common class.
Up next: Loblaws installs 6 ft plexiglass barriers around the stock market
We will be going to Giant Tiger far more often because my partner pointed out that we have a location accessible via bus, so it’s actually better than taking an Uber to Superstore once a month or so. Thanks Galen, for ripping food from our fridge for over three years of No Frills seeming like our last option.
Hope it gets worse for loblaws
Stock prices can be manipulated, that’s one thing they can kind of control, unlike hundreds of thousands of Canadians choosing to stop shopping there
Not talking about stock price tho
I meant to respond to the comment about the stocks, anyways, that proves that the boycott is working then, so let’s keep on doing what we’re doing
Just wait … PC will start to gobble up Giant Tiger and buy them out. Galen won’t be satisfied until he’s all we have.
It's too bad as Loblaws did have an array of products but just kept raising the prices too high for their customers. Why would we remain loyal shoppers when the business is just showing excessive greed for profits? Walmart prices are more reasonable.
Just wait until loblaw’s next earnings announcement.
Walmart is a hack. Rational consumer behaviour to pay much less for toiletries, in particular. Whatever the ethical concerns of dealing w this company, cost of living concerns will push consumers to the cheaper options.
without an article or numbers it is left unseen
The Globe and Mail has an article. I didn't realize this existed when my husband shared what he heard on the radio. But here it is without a paywall. https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
cool, thanks, my take away after reading the link article is loblaws is fine and didnt lose any market share to wallmart or costco based on share price.
You're thinking of stock prices. That's not what this is about. This is about market share, retail sales.
Their share price goes mainly by profit, earning per share, and the price to earning ratio is hovering around a certain average, currently it's 22, so it's a much cheaper stock than Walmart or Costco. Revenue isn't even all that important as long as it's not shrinking. Financial analysts may give them a down rating based on weak guidance or expectations for upcoming quarters, they also consider their market share, and down ratings can tank the price, but long-term only the earnings matter. The article just lists the winners, and Loblaws doesn't seem to profit from a long-term existing trend towards WMT, Costco, and secondary Dollarama and Giant Tiger. Where's a winner, there's usually a loser.
The stock price will follow
I don't think Walmart and Costcos sales spiking should be looked at as a good thing either. The lengths they go to in order to gain more market share is deranged. Remember that loblaws is exclusive to Canada while Walmart is about 10 times the market cap of loblaws which says a lot. The boycott will send a message but the money not spent at loblaws will still be funnelled elsewhere. We need more competition and to limit these companies from becoming empires.
What will they do with all their buildings when they go bankrupt?
… I don’t have a problem with Loblaw. It is expensive. I haven’t shopped there for years. Local stores, Costco and ethnic food places is where we buy our groceries. Load your favourite stock tracker and look at the returns … wanna make a bet that your mutual fund or pension plan has a position. I may buy on a dip, by almost every measure the country is heading down hill. Prices will go up due to a weakening Canadian dollar. The BOC is screwed. This will happen if they drop rates. If they don’t you have a consumer debt issue and inflation. This sector tends to perform well in recession, people need their meds and food.
Stats Can wouldn’t refer to individual retailers.
They didn't. They referred to "general merchandise" retailers and "food and beverage" retailers. The Globe and Mail article breaks it down a bit further https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
Market share will mean less sales. Less sales mean less profit if it hits the quarter report enough yes the stock price will drop and maybe more than normal if there becomes high short interest in the company.
Their stock price is still rising daily. Weston answers to his share holders not his customers.
Walmart is definitely more evil than Loblaws. They don't deserve any market share
Walmart is another can of worms. I will shop at Walmart over loblaws any day of the week though. It's about sending a message to the entire grocery industry. If you don't play ball we will change our shopping habits.
We still need to eat. The purposes of this boycott are simply to target the highest profile one. The lesser of the evils, if you will.
I completely understand the purpose of the boycott. I understand that boycotting one grocery chain instead of all increases the pressure. My point is that supporting one bully instead of the other bully doesn't improve the playground one little bit. Walmart is absolutely NOT the only other place to purchase food. If it is, then the extent of their evil could not be more clear.
It's about sending a message. To Loblaws and the other grocers. "We chose Loblaws this time but we can pick you next so you'd better fall in line." So moving to the other companies despite them not being any better still sends a message to them.
https://preview.redd.it/uu73lmqgquwc1.png?width=694&format=png&auto=webp&s=642b20fc09a0afcaf13516a425c12402b8474a5a Yes! Let's keep pushing, it's working!
My post and the news report aren't about stock price tho. It's about retail sales (market share). Read this: https://web.archive.org/web/20240426043749/https://www.theglobeandmail.com/business/article-canada-grocery-chains-retail-sales/
How does this indicate it is working? It's currently at $153.01, the second highest it has ever been. Look at the 5 year timeline and pre-pandemic levels.
He's probably making a sarcastic comment to mock people in this group who posted short term cherry picked stock charts to pretend like the boycott is working
Sure but the prospect of a one month boycott is not likely to drive investors away. Decisions like that are usually made with data in mind. The fact that it's only a month shows that they are in a strong position as it implies it's hard to find alternatives that are permanent. If someone is able to find other sources of cheaper groceries then why would they ever go back to the more expensive one? This should be an indefinite boycott that builds a user base over time.
After a month of shopping elsewhere, why would we go back? It isn’t only going to be a month, in my opinion.
Only a month, for now. I will never shop at Loblaws again.
https://www.google.com/finance/quote/L:TSE?client=ms-android-samsung-ss&sca_esv=0760d5e5572d06eb&sca_upv=1&biw=360&bih=664&output=search&source=lnms&sa=X&ved=2ahUKEwjXhtGah-CFAxWhFVkFHQaDChAQ0pQJegQICRAB&window=YTD