Grocery costs: Why are stores owned by the same companies charging different prices?
The names on the outside are different, but most grocery stores are owned by the same companies yet CTV News shopped around and found they charge significantly different prices for the same items.
First, we looked at two stores in North Vancouver – owned by industry giant Loblaw – located mere kilometres apart.
At the Superstore on Seymour Boulevard, a large tin of coffee is sold at for $14.99. In contrast, the same thing costs $17.99 at the City Market on Lonsdale Avenue.
We compared several products between these two locations, ensuring they were the same brand and size, and not on sale.
Loblaw’s in-house no-name brand stuffed chicken sells for $0.80 more at City Market than it does at Superstore. Similarly, a box of Raisin Bran is also more expensive.
“Companies are free to price in a way that they think the market will bear,” said Bradley Callaghan of the Competition Bureau, explaining the phenomenon.
“Prices are often important signals of how competition is working.”
In a statement, Loblaw public relations told CTV News its stores are designed to cater to different customer needs. For example, some may offer fewer, more basic goods at lower prices. Others, provide something different, which a spokesperson says may explain why the prices are not the same even if the items are.
“City Market, on the other hand, often has a bigger selection, more specialized products and a number of in-store amenities, which may be reflected in the prices there,” the statement read.
Next we turned to two stores owned by another major chain. Both Safeway and Thifty Foods in North Vancouver are owned by Sobeys Inc.
A large box of in-house brand orange pekoe tea is cheaper at Safeway than at Thrifty Foods $9.99 and $10.49, respectively.
Likewise a large tin of instant coffee sells for $17.99 at Safeway, but $19.79 at Thrifty Foods.
This week, the Competition Bureau released a report into grocery store prices in Canada, and found a lack of competition was leading to higher costs.
Most Canadians buy groceries in stores owned by a handful of grocery giants, with Canada's three largest grocers -- Loblaws, Sobeys, and Metro -- collectively reporting more than $100 billion in sales and $3.6 billion in profits last year, the study found.
Food prices have recorded a massive spike in Canada since November 2021 -- the last month for which grocery inflation was under five per cent.
Since then, grocery prices have consistently risen by close to double digits, peaking at an 11.4 per cent year-over-year price hike last September and again in November before easing somewhat in recent months. Statistics Canada said Tuesday grocery prices rose nine per cent year over year in May.
With files from The Canadian Press.
CTVNews.ca Top Stories
Independent stores and grocery alternatives see sales boost amid Loblaw boycott
As the month-long boycott of Loblaw-owned stores wears on, small independent food retailers and alternative grocery options say they're seeing a boost in traffic and sales.
1 dead, others injured after London-Singapore flight hit severe turbulence, Singapore Airlines says
One person has died aboard a London-Singapore flight that encountered severe turbulence, Singapore Airlines said Tuesday. The plane was diverted to Bangkok, where emergency crews rushed to help injured passengers amid stormy weather.
How to check the Air Quality Health Index and assess your health risks
As we enter another wildfire season, Environment and Climate Change Canada is advising people to pay attention to air pollution levels and check the Air Quality Health Index – especially on smoky days.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
Oilers win Game 7 over Canucks, advance to Western Conference Final
The Edmonton Oilers weathered a late Vancouver Canucks charge on Monday night, beating the hosts 3-2 to win their seven-game second-round playoff series in the decisive showdown.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
DEVELOPING Defence witness who angered the judge in Trump's hush money trial will return to the stand
A defence witness in Donald Trump's hush money case whom the judge threatened to remove from the trial over his behaviour will return to the stand Tuesday as the trial nears its end.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
Microsoft's AI chatbot will 'recall' everything you do on a PC
Microsoft wants laptop users to get so comfortable with its artificial intelligence chatbot that it will remember everything you're doing on your computer and help figure out what you want to do next.