Indie London grocers hope Loblaw boycott nets them new business

As a nationwide boycott of Loblaw-owned businesses enters its second week, some independent grocers in London said theyhope the campaign will translate to a boost in sales as people seek out shopping alternatives.

The boycott of Loblaws stores and other chains owned by the grocery giant began on May 1, sparkedby an online Reddit group that by Tuesday had grown to more 75,000 members.

The "subreddit" behind the boycott, /r/LoblawsIsOutOfControl, calls for the company to reduce prices by 15 per cent, stop member-only pricing, sign a grocers' code of conduct, and halt further dividend increases, among other demands.

"It just started a week ago, but we did see an increase,"said Barbara Deakin, one of two managers at London Food Co-op."Several people came in and said they were checking [the store] out because of the boycott,"

Launched in 1970, London Food Co-op is owned by members who pay $40 per year to help support the purchase of inventory.About 300 families aremembers, said Deakin. Theysave 10 per cent on their bill compared to non-members.

"Last week, within a couple of days, we had four or five new members sign up, which (is) a lot for a two-day period," said Deakin, who has been a manager at the co-op since 2004.

"In general, healthy food, organic food, natural food, environmentally-friendly products We've always done it, because we want to offer those things to people at a decent price. And we're a not-for-profit, so that's not our reason for being."

Loblaw and other grocery chains have faced criticism from consumers and politicians over high food prices at the same time that they report higher profits.

Last week, Loblaw reported a Q1 profit nearly 10 per cent higher than the year before, and said it would hike its quarterly dividend by 15 per cent.The company has denied that it has profiteered on the back of higher inflation, and Loblaw chairman Galen Weston Jr. has described the criticism as being "misguided."

Kara Rignen, co-founder of the package-free grocer Reimagine Co., said while the boycott hadn't led to a notable bump in traffic yet, the store was planning to take the opportunity to boost business.

"I do plan on having a series of social posts go out, just highlighting how our prices... they've changed very little in the last four years," that the store has been open, Rignen said.

About three-quarters of the store's prices are the same as they were in 2020, Rignen said. In addition, Reimagine Co., recently found a new supplier who has helpedcut the cost of several staple ingredients.

"That's obviously at the crux of the issue with Loblaws is how much things have gone up, and if small stores like ourselves can keep prices steady for four years, then why can't corporate giants?" Rignen said.

Loblaw Companies Ltd. makes up nearly one third of grocery sales in Canada through the chains it operates, including Loblaws, No Frills, Real Canadian Superstore, Valu-Mart, and others.

It also owns Shoppers Drug Mart, PC Financial, and the brands Joe Fresh, Life, No Name, and President's Choice, among others, making it a ubiquitous retail presence.

WATCH | Frustrated shoppers boycott Loblaw stores for month of May:

Frustrated shoppers boycott Loblaw stores for month of May

1 month ago

Duration 1:49

Canadians frustrated with rising groceries prices have pledged to boycott Loblaw-owned stores for the month of May. On the same day it was set to begin, Canada's largest grocer reported a nearly 10 per cent increase in profits.

The crowdfunded website altgrocery.ca aims to steer those boycotting Loblaw to locally-owned grocers, such as Sunripe Freshmarket, which operates two stores in London and one in Sarnia.

"I'm not sure if it was because of the boycott, specifically, but we did have a big sale on the weekend, and definitely had some uptick there," said Kysa Willemsen, who manages the three locations.

The boycott comes as the local chain deals with higher costs for everything from packaging to cases of chocolate, which doubled in price, she said. With that in mind, any new faces coming through the door are more than welcome.

"We just moved this Adelaide location about a year ago now, so we're still kind of new to the neighborhood," Willemsen said. "Opening our doors to anyone that comes to visit and any excuse, we'll take it."

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