Canada’s five major grocery chains have pledged their support to the Canadian government’s efforts to stabilize prices, according to Innovation Minister Francois-Philippe Champagne. The announcement followed two hours of discussions between the government and the executives of the grocery chains, during which Champagne reiterated the government’s threat of imposing new taxes if the chains did not collaborate in addressing budget-breaking price increases.
Champagne stated that the grocery chains have agreed to assist the government in stabilizing prices, although specific details were not provided. He emphasized that this was just the beginning and that the government would continue to push for further action. The move comes as the ruling Liberal party faces criticism and a decline in popularity due to the high cost of living and the lack of affordable housing.
CEO Eric La Fleche of Metro, one of the executives present at the meeting, expressed the chains’ commitment to finding solutions but highlighted that the issue of price stability extends beyond the retailers themselves. He emphasized the need to include manufacturers, producers, farmers, and other stakeholders in the discussions.
The other major grocery chains that attended the meeting were Loblaws, Sobeys, Walmart, and Costco, which collectively represent 80% of the Canadian market. Alongside the efforts to stabilize prices, Prime Minister Justin Trudeau recently announced a tax break aimed at boosting the construction of rental apartment buildings to alleviate pressure on the housing market.
To address inflation, Minister Karina Gould is preparing comprehensive draft legislation that aims to curb rising prices. The official opposition Conservatives attribute high inflation to excessive government spending under Trudeau’s leadership and are predicted to win an election if held now, potentially ending the eight-year rule of the Liberal party.
Overall, the commitment from Canada’s major grocery chains to collaborate with the government marks a significant step in addressing price instability and alleviating concerns surrounding the cost of living. By involving all stakeholders in finding solutions, including manufacturers and producers, there is a collective effort to find sustainable strategies to stabilize prices in Canada.
Source: Reuters