Let’s talk about corporate greed. Welcome to our article series “Why Buy Local”, where we explore perspectives and ideas on why buying local matters.
This past winter’s news about Loblaw’s changing their discount sticker policies started a lot of conversations. It’s a good time to bring in some findings on the industry that were published in 2023 that explain why these grocery store giants aren’t accountable to the needs of consumers.
In 2023, the Canadian Competition Bureau published a report about the grocery store industry where we learned that 80% of the industry is controlled by 5 major corporations. The majority of that is owned by Loblaws, Sobeys, and Metro which have many many stores within their ownership. The other two corporations are Walmart and Costco.
There are a lot of factors at play that make it so that independent grocers are set up to fail, including the fact that these 3 companies own many of the discount stores and are paid by suppliers to put their products on shelves. The report also mentions how location is an issue because of restricted land use covenants; these clauses can squash the competition by making it impossible for businesses to open a grocery store in locations where it would be logistically feasible, even if the original grocery store closes down in that location. (Source)
The issue here is that this lack of competition creates a bottleneck in the food system, where all of the power rests in the hands of a few large companies focused on generating profits for their shareholders rather than being accountable to the interests of farmers, producers, or consumers.
In 2022, there was a 10.3% rise in food costs in Canada according to Canada’s Food Price Report, and 22% of Nova Scotians lived with food insecurity. Food bank usage was up 27%, and Feed Nova Scotia doubled what they spent on food from the previous year. That same year, $100 billion was made by these 3 large grocery store chains.
These harrowing numbers aren’t the only thing that increased. The other thing being Galen Weston Jr.’s salary, which received a 55% increase landing him at $8.4 million made in 2022 alone.
We know this system can feel absolutely daunting and hopeless to navigate given the disparity between the corporate greed and the many people who are struggling to feed their families. Grocery stores may not notice if you’re missing, but local businesses notice if you show up. It’s a powerful exercise to imagine what a more just food system looks like and to engage with it, if you have the resources to do so.
If you’re new to buying local or want to engage further, check out our article here filled with ideas of ways you can support the movement. There are many ways to make this approach to shopping sustainable without an all or nothing approach. Small shifts towards local purchases, maybe even one at a time, can make buying local more enjoyable and realistic.
What are your thoughts on the rejection of corporate greed and what we should do about it?
