This year’s first-quarter results are in, and for major Canadian retailers and their shareholders, this is good news.
Canadian Tire Corp. reported revenue growth of 15.66% year-over-year. In the food division, Metro posted a 5.3% increase in net income, while Empire Co. — by 15.4%. But the best performer was Loblaws, which outperformed its Q1 2021 results with a 40% increase in Q1 2022 profitability. However, as long as investors are happy, customers and suppliers are paying the price. Literally.
Price gouging was the big elephant in the room during the Loblaws analysts’ quarterly call, according to the Toronto Star. Of course, the growth in sales is partly due to the easing of quarantine restrictions. People have accumulated savings over the past two years, so now they are happy to spend it when restrictions like masks are finally lifted. But Canadians for Tax Justice (CTF) called Loblaws’ earnings growth “further evidence that one of the main drivers of inflation is corporate price increases.”
As a result, both the CTF and the Canadian Center for Policy Alternatives are pushing for tougher product pricing regulations and taxes on “excessive profits.”