Loblaw raising fees for suppliers in 2023 to offset higher supply chain costs
Global News
Grocery giant Loblaw says it experienced significant year-over-year increases in many of its supply chain costs and will pass those hikes along in higher fees to suppliers.
Loblaw Companies Ltd. is increasing how much it costs suppliers to get products on its grocery and drugstore shelves.
In a letter to suppliers on Oct. 3, the company said it has experienced significant year-over-year increases in many of its supply chain costs, including higher “cartage” or freight costs.
Loblaw said its supply chain handling fees will go up Jan. 1, 2023, with increases to both distribution centre delivery charges and direct-to-store delivery charges.
“These fee changes reflect those supply chain cost increases,” Blaine Caldwell, Loblaw senior vice-president of logistics and replenishment, said in the notice to suppliers.
Industry observers say fee increases will likely be passed on to consumers, contributing to higher food prices.
“This is an example of a unilateral decision made by grocers to increase fees and and get suppliers to financially support their operations,” said Sylvain Charlebois, Dalhousie University professor of food distribution and policy.
Sometimes the higher fees and charges are warranted and reflect the rising cost of doing business, while sometime they are less clear cut, he said.
“It points to why we need a code of conduct,” Charlebois said.
Canada's labour market added roughly 15,000 jobs in October, enough to keep the unemployment rate steady at 6.5 per cent in the month.
A weaker Canadian dollar tied to Donald Trump's victory could be inflationary north of the border, which could make our central bank more hesitant to cut rates too quickly.
The employee was indicted for allegedly distributing personal information of TD Bank customers, the latest criminal probe to hit the U.S. arm of the Canadian financial institution.
Stock markets were rising broadly higher on news of Donald Trump's U.S. election victory on Wednesday. Here's how investors say you should adjust your portfolio.
The Bank of Canada's Carolyn Rogers says improving housing affordability ultimately requires reaching a balance between supply and demand, which she says will take time.
Donald Trump was previously a crypto skeptic but changed his mind and took a favorable view of cryptocurrencies ahead of the election.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Bell Canada will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
With the costs of pet ownership rising, the Competition Bureau sees an opportunity to drive down the prices of medication by expanding distribution to pharmacies.
Major North American carriers with international operations are cashing in on a booming demand for overseas travel and a resurgence in business bookings.