19:15:56 EDT Thu 31 Oct 2024
Enter Symbol
or Name
USA
CA



Loblaw Companies Ltd
Symbol L
Shares Issued 315,239,402
Close 2023-09-20 C$ 113.68
Market Cap C$ 35,836,415,219
Recent Sedar Documents

FP says Loblaw, rivals not to blame for Kleenex exit

2023-09-20 09:09 ET - In the News

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The Financial Post reports in its Wednesday, Sept. 20, edition that Prime Minister Justin Trudeau and his cabinet want tougher competition legislation to give more powers to Ottawa's competition enforcers to tackle and even break up the supermarket chains. The Post's Terrence Corcoran writes that there was no better demonstration of the unsupportable nonsense behind the movement to blame grocery "corporate greed" for Canada's inflation and supply chain problems than the flap that developed around the recent decision by Kimberly-Clark to stop selling Kleenex tissues in Canada. As National Bank analyst Zachary Evershed noted, the Kleenex decision was not unexpected. However, it was a big deal among academic theorists on competition who held that Kleenex, with 16.2-per-cent market share, was driven out of Canada by the grocery chains. Mr. Corcoran says, competition policy circa 1997 -- not grocery chain greed circa 2023 -- lifted Kruger and Scotties to market dominance over Kimberly-Clark and Kleenex. To claim that corporate greed at the retail level drove Kleenex from the market, is to be guilty of three fundamental failures: lack of analysis, lack of evidence and unsupportable theory.

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