Survey Finds One-Third of Canadians Blame Grocery Store Price Gouging as Primary Cause of Food Price Hikes

Inflation

A fresh study has revealed that approximately 33% of Canadians are of the opinion that grocery stores engaging in price gouging is the primary factor behind the recent increase in food prices across Canada. The survey, which was conducted among almost 10,000 Canadians, established this outcome.

The report, which came out earlier this week from Dalhousie University’s Agri-Food Analytics Lab, revealed that Canadian citizens don't fully trust their local grocery stores. Even after a parliamentary committee meeting, where significant grocery retailers denied claims of overpricing, most Canadians still remain unsure.

The surge in food prices has become a significant worry over the last few years. During 2022, the cost of food rose by approximately 10%, exceeding expectations.

During the end of March, a group of researchers conducted a survey across multiple countries with a sample size of 9,884 individuals. The survey aimed to ascertain how Canadians perceived the current food prices and the underlying reasons for the rising costs.

The survey discovered that views on price gouging being the primary reason behind the rise in food prices differ significantly across the different provinces in Canada. However, the majority of Canadians do not share this belief.

People from Nova Scotia have very little confidence in grocery stores. About 52 percent of them think that the main reason for increasing prices of food is because grocers charge excessive prices.

The following Atlantic regions also had a high percentage of people who believe that grocery stores contribute to increasing food prices. In Newfoundland and Labrador, 38 percent of those surveyed agreed with this statement, and in Prince Edward Island, 36 percent of respondents had the same opinion.

The survey shows that around 30-33% of people surveyed in British Columbia, Alberta, Ontario, New Brunswick, and Manitoba believe that the main reason for price hikes is due to price gouging.

Only 27% of people in Saskatchewan and roughly 22% in Quebec think that price gouging is the primary issue.

Only Quebec and Saskatchewan provinces didn't select "price gouging" as their main reason for the rise in prices according to the survey. People who participated in the survey from these provinces believed that "inflation/monetary/fiscal policies" were the primary reason for the increase in prices. 36% of respondents from Quebec and 32% from Saskatchewan identified monetary policies as the problem.

In general, almost 30% of Canadians think that either inflation or monetary policies are the major reasons for food prices going up. This is similar to the 30.3% who said that they believe grocery stores increasing prices is the primary cause.

The survey inquired about how Canadians feel about grocery stores after the recent parliamentary committee, where shop owners defended themselves against claims of overcharging. It aimed to gauge the impact of the hearing on their confidence in these stores.

Just 35% of participants in the survey were knowledgeable about the committee. The majority of these individuals had doubts about the statements of CEOs and leaders of companies affiliated with major supermarkets like Loblaws, Metro, and Sobeys.

Approximately one-third of those surveyed found the statements of the grocers to be persuasive or highly persuasive, and roughly one-fourth of those surveyed described these statements as "open and honest."

According to the report by Janet Music, an Agri-Food Analytics Lab researcher from Dalhousie University, even if grocers have the best and most fresh products on their shelves, they still won't be able to attract customers without their trust. Unfortunately, the Canadian public has many misunderstandings about the grocery business. Grocers need to focus even more on being transparent, ethical, and sustainable in order to succeed in the future.

When it comes to gaining the trust of shoppers, almost half of those surveyed suggested that grocery stores implement more frequent price freezes.

The national administration has been deliberating over a possible regulation for Grocery businesses, aimed at equitably distributing supplies between bigger and smaller stores with the goal of luring additional suppliers into the Canadian market. The authorities are expected to make an announcement regarding this proposal in April.

About 68% of the 3,300 people who participated in the survey and knew about the plan, favored it. The region that displayed the highest level of support was Nova Scotia, with 76.5% in favor of it. Alternatively, Prince Edward Island had the lowest support for the plan, with only 53.2% in favor of it.

Beyond the suggested set of rules, known as the Grocery Code of Conduct, nearly half of those surveyed believed that the government should step in by establishing rules for the cost of certain food items sold in supermarkets. A mere 19 per cent advocated for a special tax on grocery retailers who unexpectedly earn additional profits.

The rise in food prices is happening in many parts of the world, but Canada is doing comparatively well with the third lowest food inflation rate among G7 countries and the European Union. Only Japan and the U.S. have lower rates.

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