In the News

Why Canadians are angry with their biggest supermarket

Graham Watson

8th June 2024

Economic gold here, with an article that highlights the impact of a high degree of concentration in the Canadian grocery market and higher prices as a result.

The Canadian market is dominated by three major players - Loblaw, Empire and Metro who control over 60% sales, with Walmart and Costco accounting for a significant proportion of the remaining sales. In contrast, the US has a larger number of regional players and in the UK there are 14 companies which have more than £1bn worth of sales.

However, breaking into the Canadian market is more complicated than most people think and this might have precluded any one of a number of international chains from trying to establish a foothold there, despite attempts by the Canadian government to woo discounters like Aldi and Lidl

As a result, Canadians have less choice and higher prices, both a consequence of a lack of competition

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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