Canadian Grocers' Annual Price Freeze Comes Under Fire for Causing Price Spikes and Limiting Competition
-
There is an annual 3-month industry-wide grocery price freeze in Canada from late October to early February. Prices are frozen for many national and private label goods.
-
The price freeze is a historical practice to help grocers during the busy holiday period, but is now seen as obsolete and anti-competitive.
-
When the freeze ends, suppliers flood grocers with pent-up price increase demands, leading to price volatility that discourages consumers from buying healthier fresh foods.
-
The price freeze contributes to food inflation hitting consumers hard before and after the period, according to one expert.
-
One grocer, Metro, is more open about discussing the price freeze, seemingly to undermine a rival grocer's separate price freeze announcement last fall.