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
Lanny McDonald and a few old Flames take the Stanley Cup on a surprise visit to the man who saved his life
The Stanley Cup was passing through town Friday, and Lanny Legend took it upon himself to take it for a surprise visit.
This Calgary home has a giant tree in the middle, and it's for sale
There's a luxury 'tree home' for sale in Calgary.
Chad Daybell sentenced to death for killing wife and girlfriend’s two children in jury decision
Jurors resumed deliberations Saturday on whether a man should be sentenced to death after being convicted days earlier of the murders of his wife and his girlfriend’s two youngest children in Idaho.
Robert Pickton stabbed with toothbrush and broken broom handle: victim's family
The family of one of Robert Pickton's victims says the convicted serial killer suffered an incredibly violent death at the hands of another inmate.
Father who killed one-year-old son with axe may be allowed to travel in southwestern Ontario
A Mennonite father who killed his one-year-old son with an axe may be allowed to travel to parts of southern Ontario in the coming months
Panama prepares to evacuate first island in face of rising sea level
On a tiny island off Panama's Caribbean coast, about 300 families are packing their belongings in preparation for a dramatic change. Generations of Gunas who have grown up on Gardi Sugdub in a life dedicated to the sea and tourism will trade that next week for the mainland’s solid ground.
Pedestrian dies after being hit by train in Brockville, Ont.
Brockville Police says a pedestrian has died following a collision with a train that was heading to Toronto.
'It feels like freedom': Why some Albertans like going nude in nature
Few people can say they accidentally purchased a nude beach — but Shelley can. When she saw a piece of land she could fondly remember camping on was up for sale, she inquired about it and ended up purchasing it. She soon found that there were already inhabitants on it.
Trump election victory 'very unlikely,' but 'possible': former FBI director Comey
Former FBI director James Comey says while he believes former U.S. president Donald Trump "will be defeated" in the upcoming presidential election, he doesn’t think it’s a given.