Description: You might think lower food prices would be good news. But Sylvain Charlebois, Dean of Dalhousie Univeristy’s Faculty of Management says that we might want to hold off on the celebration. Agricultural commodity prices have dropped to about half of what they were in 2012, creating challenges for producers, retailers and processors.
Date: October 4, 2016
1) Have you noticed any of these deflationary price trends on your grocery budget?
2) What are some of the strategies indicated by the article for raising margins in the face of these price pressures?
3) Chapter 5 of Wiley’s Financial Accounting: Tools for Business Decision Making tell us a story about Canada’s largest grocery chain, Loblaw Companies, in its opening vignette. What are some of the strategies Loblaw’s has developed in recent years to help it deal with the pressures on its gross margin?