Until recently,
The grocer said Monday it now offers 30 per cent off on last-day sale items across the board to be more predictable and consistent, spokeswoman
Competitors including
Metro spokeswoman
Price reductions depend on several factors, such as the quality of the product and proximity to the expiration date, she said in an email. Besides, the grocer has partnered with food recovery and rescue services such as Too Good To Go and One More Bite.
Markdowns in grocery stores are more acute than other retail businesses due to short shelf life, Hutcheson said. In turn, grocers are extremely mindful of expiration dates on their items — especially for produce, bakery, deli and dairy.
In Loblaw's case, she added, the grocer is minimizing margin erosion by offering less than 50 per cent and likely moving up.
Demand for discounted food items has gone up, giving more wiggle room to grocers to sell items at a lowered discount rate, Hutcheson said.
"What drives markdowns for retailers is whether it's selling or not selling," she said. If an item is selling quickly at 50 per cent markdown, it likely would sell at 30 per cent off, Hutcheson added.
While there was always a customer base for discounted food items, finding deals on flyers or apps, demand for lowered groceries has gone up because of the financial pressures and high inflation — encouraging the grocer to reduce discounts.
"Any discount is a benefit for the customer and so will the customer shop it anyway for the price," Hutcheson said.
Although, she noted that Loblaw's discount strategy is "unusual" at this time of the year.
"January is a month of bills and there are a lot of mortgage renewals (for Canadians), so it seems like not a great time to do this strategy," she said. The changes would be a shift for people who have come to rely on last-day discounts, Hutcheson added.
This report by The Canadian Press was first published
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Note to readers: This story has been clarified to say Loblaw now offers 30 per cent off on last-day sale items across the board.
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