Loblaw boycott not hurting chain yet

Four big suppliers say stores haven’t cut back on orders

- JAKE EDMISTON

A shopper at a Toronto Loblaws store. Some insiders warn that Loblaw and its rivals shouldn’t underestimate the long-term impacts of the boycott, which captures an intense wave of consumer resentment after years of high inflation and profit growth in the Canadian grocery business.

After more than a week, the Loblaw boycott doesn’t appear to have made a dent in the grocery chain’s sales, according to a group of suppliers.

Executives at four major food companies, representing a wide selection of goods, said they haven’t seen an impact from the boycott so far this month. The four executives, who spoke on condition of anonymity to avoid compromising their relationship with Loblaw, said their sales and orders with the chain don’t appear to have changed, despite some online claims that the boycott was hurting the grocery chain.

Investors don’t appear to be concerned that the boycott will impact profits either. In fact, Loblaw shares traded above $156 this week, an all-time high.

Kathleen Wong, senior analyst at Veritas Investment Research, suggested that investors remain confident in Loblaw because in the middle of an affordability crisis, when consumers are looking for value, her analysis has shown Loblaws prices have been coming down and are on par, and in some cases even better, than its competitors in Canada.