Loblaw president and executive chairman Galen Weston said “the idea that grocers are causing food inflation is not only false, it’s impossible.” (THE CANADIAN PRESS/Spencer Colby)
The top executives from Canada’s biggest grocery stores say they are not causing or profiting from food inflation, pointing to higher supplier and input costs as key factors driving rising prices.
The CEOs and presidents from Loblaw (L.TO), Empire (EMP-A.TO) and Metro (MRU.TO) testified before the House of Commons agriculture committee on Wednesday as part of an investigation into food inflation.
All three leaders said grocers were not responsible for soaring food prices, noting that this period of high food inflation is a global phenomenon.
“For those who say grocers are profiteering, the math just doesn’t add up,” Loblaw president and executive chairman Galen Weston said, adding that food prices have increased 25 times faster than profit has. He says the company earns $1 in profit in a $25 grocery basket, which means that while the total basket price has increased by $4 since inflation took off 18 months ago, Loblaw’s profit margin has gone up by 15 cents.
“At Loblaw, none of those profits came from higher food margins. Our retail prices have not risen faster than our costs,” Weston said.
“So no matter how many times you read it on Twitter, the idea that grocers are causing food inflation is not only false, it’s impossible.”
The cost of groceries has soared in the past year, increasing at rates not seen in more than four decades. Food inflation has persisted, even as the broader Consumer Price Index has decelerated from the peak reached in June last year. Canada’s inflation rate eased to 5.9 per cent in January, but the cost of food purchased from grocery stores increased 11.4 per cent, up from the prior month.
The persistently high prices have led to increased pressure and scrutiny on grocery retailers. In addition to the agriculture committee’s study on food inflation, the Competition Bureau announced last October that it would examine grocery competition in the country and whether it has driven food prices higher.
How much profit is too much profit?Jagmeet Singh, leader of the New Democratic Party
Members of Parliament grilled executives on Wednesday about the increase in profitability at Canada’s biggest grocery chains amid rising prices. They also asked about whether the grocers would commit to a grocery Code of Conduct, something currently in the works that aims to enhance “transparency, predictability and fair dealing” in the food supply chain.
NDP leader Jagmeet Singh, who has accused the grocers of “greedflation”, subbed in for the party’s agriculture critic and directed his questions to Weston.
“We have families that are struggling to buy food for their kids in this country, a G7 country, and they look at you and they see you making record profits. How can you justify that when families are struggling to put food on the table for their kids?” Singh said. “How much profit is too much profit?”
Weston said that “reasonable profitability is an important part of operating a business,” repeatedly referring to Loblaw’s $1 in profit for every $25 of groceries sold.
“We at Empire are not profiting from inflation. It doesn’t matter how many times you say it, write it, or tweet it, it is simply not true,” Michael Medline said, pointing to geopolitical events, rising input costs, extreme weather, soaring energy prices and labour shortages as factors contributing to rising prices.
“The truth is we are at the end of a very long food supply chain that has economic inputs at every step and stage.”
Eric La Flèche also says Metro grappled with an “unprecedented number” of price increases from its suppliers through 2022. He says the company received more than 27,000 price increase requests last year, with the hikes averaging more than 10 per cent.
“This year, we continue to receive a large number of price increase requests from our suppliers,” he said.
“I hope all members of the committee recognize that the entire supply chain is in an unprecedented period of prolonged stress. Focusing on grocers will not solve the problem of food inflation, because we are not causing it and we are not benefiting from it.”
Senior executives from Loblaw and Empire had previously testified before the same committee in December, but at the time MPs questioned why the chief executive officers of Canada’s largest grocers did not appear before the committee. Senior executives told the committee in December that rising supplier costs were to blame for soaring food prices and that retailers are not taking advantage of inflation to boost profit.
On Wednesday, all three executives referred to the absence of executives from U.S. companies that operate and sell groceries in Canada, such as Walmart and Costco.
“We compete against some of the toughest food retailers in the world including Walmart, Amazon and Costco, as well as a lot of other competition. That does not sound like an oligopoly to me,” Medline said.
“This is not a problem with too little competition. The problem is that there is a global product cost inflation.”
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
