Loblaw 50 per cent off stickers to return after public anger over discount reduction

Loblaw Cos. Ltd. says it's reversing course on a decision to reduce its discounts on grocery items nearing expiry.

Loblaw Cos. Ltd. is reversing course on a decision to reduce its discounts on grocery items nearing their best-before date.

Spokeswoman Catherine Thomas confirmed Friday afternoon that after listening to feedback from customers and colleagues, Loblaw is reverting back to its previous discounting practice of marking down last-day sale items by between 30 and 50 per cent.

"Customers can expect to see (50 per cent) stickers returning in the next few weeks," she said in an email.

Canada's largest grocer drew public ire this week after it decided that all last-day sale items would be marked down by 30 per cent across the board to provide more predictability and consistency.

The move even prompted NDP MP Alistair MacGregor to call for an investigation into potential anti-competitive practices, citing comments by Loblaw indicating they were changing the discount to align with their competitors.

However, both the Retail Council of Canada and competition expert Michael Osborne said price-matching and discount-matching are normal practices in the industry.

The shift put Loblaw in line with its competitors, J.C. Williams Group retail analyst Lisa Hutcheson said on Tuesday.