Loblaw Companies (L) has announced that it is freezing prices on all of its “No Name” brand
products until January 31 of next year.
The Toronto-based grocer said it is instituting the price freeze to help consumers who are
struggling with double-digit food inflation.
The No Name store brand includes more than 1,500 grocery items, according to Loblaw.
In a news release, Loblaw acknowledged that the average price of groceries is up 10% this year
with some items such as soup and potato chips up by more. However, Loblaw also said that the
price increases this year are reasonable and the result of increases in basic costs for suppliers.
Loblaw’s decision to freeze prices on its private label brand comes after similar announcements
by grocery chains in other countries.
In August, for example, French supermarket chain Carrefour announced plans to freeze prices
on about 100 of its in-store brands until November 30 this year.
Some consumer groups dismissed the move by Loblaw as a public relations tactic, noting that
the price freeze will be in place for less than four months.
So far this year, Loblaw’s stock is up 6% at $109.27 per share.
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