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
'A step forward': New screening criteria for sperm donors takes effect
Canadians looking to grow their families with the assistance of sperm or egg donations should soon have more options for donors as the federal health agency does away with longstanding restrictions criticized as discriminatory.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Watch fighter jet pilots pummel fake enemy ship off coast of Philippines
The United States and Philippines held annual joint-training drills just off the Southeast Asian nation’s western coast on Wednesday. Military forces sunk a 'mock' enemy warship – the BRP Lake Caliraya, which was a decommissioned tanker made in China.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his head more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
Rookie goalie Arturs Silovs to start for Canucks in Game 1 vs. Oilers
Rookie goalie Arturs Silovs will start in net for the Canucks as Vancouver kicks off a second-round series against the Edmonton Oilers Wednesday night.