More than 30 per cent of Canadians believe price gouging at grocery stores is the main reason why food prices have been skyrocketing recently, according to a new survey.
Dalhousie University’s Agri‑Food Analytics Lab conducted a poll on Canadians’ thoughts about food inflation after grocery chain CEOs testified in the House of Commons last month.
“With this investigation, we looked at how Canadians saw CEO’s performances when they testified before the Standing Committee in Ottawa (Metro, Loblaws and Empire/Sobeys on March 8, Walmart testified March 27). We also looked at which factors Canadians believe contribute the most to food inflation, and what can be done about it,” reads the report, which was published on Tuesday.
The survey polled more than 9,880 respondents at the end of March.
Respondents were asked if they’ve been following the recent parliamentary committee hearing and about 35 per cent said they did. Of those, the majority were unconvinced by the CEOs during their testimonies. Meanwhile, nearly 33 per cent felt the grocers were convincing and 24.7 per cent felt the grocers were transparent and forthcoming enough about the data.
“Grocers may stock their shelves with the freshest produce and finest goods, but without the trust of their consumers, their offerings [will not sway consumers],” Janet Music, research associate at the Agri-Food Analytics Lab at Dalhousie University, said in a news release. “Their business is largely misunderstood by the Canadian public. For grocers, transparency, ethics, and sustainability will be even more critical moving forward,” Music continued.
Nova Scotia had the biggest proportion of respondents who believe grocery chain price gouging is the main reason food prices have been rising at 51.8 per cent, followed by Newfoundland and Labrador (38.1%) and Prince Edward Island (36.1%). More than 31 per cent of Ontario residents voted price gouging as the top reason for escalating food prices.
Meanwhile, nearly 30 per cent of respondents actually believe inflation is the main reason for higher food prices. Both Quebec and Saskatchewan were the only provinces that had a higher proportion vote for inflation and monetary/fiscal policies as the biggest culprit for higher prices, rather than price gouging.
To address soaring food prices, nearly half of all respondents (46.6%) said they would appreciate more price freezes, while 44.2 per cent want more transparency related to food sales. More than 36.4 per cent wish loyalty programs would be more generous and 33.4 per cent would like more competition in Canada, the report says.
The survey also asked respondents about their thoughts on a proposed “Grocery Code of Conduct,” which would decrease the influence of some major grocers and, in turn, help independent grocers. More than 68 per cent of respondents who were aware of the code were supportive of it.
“The Grocery Code of Conduct is not just a set of rules, it’s a lifeline for Canadian shoppers,” Dr. Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, said in a news release. “It ensures fair pricing, transparency, consistency, and accountability from retailers, giving consumers the peace of mind they deserve when purchasing their groceries,” Charlebois added.
A significant number of respondents appear to believe that governments should intervene and regulate the price of some staples at the grocery store. About 19 per cent even believe the government should implement a windfall tax, which is a levy by the government on unexpected profits or gains that are not part of a company’s normal business operations. In addition, 4.5 per cent of Canadians believe the government should create a crown corporation and start its own grocery chain.
The survey has a margin of error plus or minus 1.2 per cent, 19 times out of 20.
