Description: High food prices have been impacting Canadian consumers in this inflationary environment, and some are expressing their displeasure via social media in the wake of Loblaw lifting a prize freeze it had set back in the fall of 2022. Loblaw has responded through its own social media channels to defend its actions against consumers’ allegations of profiteering. University of Toronto marketing professor David Soberman believes that by responding, Loblaw is doing the right thing. He notes that “If you’re not going to tell people something that they like, at least respond to them because you’re showing respect for their concerns.”
Date: February 1, 2023
Source: financialpost.com
Discussion points:
1) Were you taking advantage of this price freeze to help stock your cupboards? What about your classmates?
2) Do you agree with Loblaw’s strategy of responding to these complaints on social media? Why or why not?
3) Chapter 5 of Wiley’s Financial Accounting: Tools for Business Decision-Making opens with a vignette describing merchandising operations at Loblaw. What are some of the cost savings Loblaw has achieved in its supply-chain management?
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