Loblaws admits to bread price fixing (with immunity) & Offers $25 Gift Card

[Ciel]

What is the likelihood some SCers will receive their cards this month? I sure am hoping so.

[Natalka]

What is the likelihood some SCers will receive their cards this month? I sure am hoping so.

Nil.

Six to 12 weeks

[momof3heathens]

So will bread prices go down because of this?

[couponmummy]

.

[redhdlois]

So will bread prices go down because of this?

Good question !! You would think so !!

[My two Canadian cents]

So will bread prices go down because of this?

Good question !! You would think so !!

Old Mill bread 675g at No Frills had a regular price of $1.68 for the last couple months (a similar regular price to FreshCo and Walmart's store brands of 675g bread). I went to buy some at No Frills on January 6 and its regular price had been reduced to $1.65.

[bhlombardy]

So will bread prices go down because of this?

Not likely... The price-fixing period ended almost 3 years ago (May 2015). Unless they can prove the same forced/planned incremental price increases have continued since then, I would say you can expect not.

[redhdlois]

Not likely... The price-fixing period ended almost 3 years ago (May 2015). Unless they can prove the same forced/planned incremental price increases have continued since then, I would say you can expect not.

Hmmm weird......as there was no changes to the prices after May 2015.

[couponmummy]

There is a supermarket near me that advertised 2 for 1 d'Italiano, 675g, in their flyer. Too bad we don't like d'Italiano.

[bhlombardy]

Hmmm weird......as there was no changes to the prices after May 2015.

Exactly... no decreases, but also no price increases either.

Among those 13 years between 2002 and 2015 (and even 2015 - now) one has to count for inflation to be sure, so the occasional price increase wouldnt be unheard of. But their "scheme" was planned profit increases each year, most assuredly taking into consideration the usual rate of inflation into that (supplies, transportation, overhead, etc).

No one is saying that they made the price of bread 5x more than it was supposed to be. This isnt a matter of obscene over-charging or price gouging. Rather it was a strategic plan to make the Weston companies (Weston bread and Loblaws retail stores) into planned profitability by fixing the game -- Their bread brands, which they fixed the "cost" sold to their retail stores who "fixed" the retail price based on the costs... which in turn increases both Weston and Loblaws stock values all the while pleasing investors... but at the expense of the consumers. If a company's goal is to see a 5% or 10% increase in profits annually (for example), then that's what they'd plan and account for in their cost/price fix... Achieving that profit-earning goal on a regular basis drives the corporate value up and up.

All that said, it is suggested "they" (some facet of Loblaws I presume) discovered this price-fix internally (between which groups, I do not know) and put a stop to it in 2015, and have been investigating this and analyzing it internally since then. "They" recently brought it forward and reported it voluntarily.

Given that since that discovery in 2015, (nearly two years have passed) and there's been no mark of an increase on the price of bread, it would stand to reason that they've been consuming that inflation into their costs as it will stabilize and ultimately reach an equilibrium to where it ought to be. This won't take 13 years. This might take 3 or 4 if they consume the rate of inflation as it appears they are. So to expect the price is going to drop, is not likely. They'll continue this stabilization mechanism until it aligns with the true expectation of a fair market profit... something the courts would probably dictate they do anyway, so they've already implemented it. Might you see more sales, promotions, etc? Perhaps. But you wont see a decrease in the regular price. That's just not likely going to happen.

[tjthemanto]

U.S. lawsuit alleges 6 Canadian banks manipulated an interest rate benchmark

BMO, Bank of Nova Scotia, CIBC, National Bank of Canada, Royal Bank of Canada and TD have allegedly manipulated the Canadian dealer offered rate from at least Aug. 9, 2007, to June 30, 2014, the lawsuit claims.

https://www.thestar.com/business/201...benchmark.html

Imagine if they have aalso fixed the Mortgage rates, GIC rates, Line of Credit rates, car loan rates, Savings account, Insurance rates - How
many thousands of dollars we have lost

1. Banks the major 5-6
2. Gas stations like Esso, Shell, Petro Canada, Sunoco
3. Telecom companies like Rogers, Bell, Telus

These companies should be on the list now.

[bhlombardy]

Found this last night... thought it might lighten the mood.

https://www.youtube.com/watch?v=VMUNmAX8C0k

[Ciel]

So will bread prices go down because of this?

I actually noticed that the Old Mill sliced cracked wheat bread price did change in November/December. It was $2.19 or $2.29 at regular price for most of 2017 at my Fortinos store but did go down to $1.99 for a little while. I usually buy it from the 50% off rack when the variety appears (very random) and I check the regular price shelf on occasion to see what the current price is (or I buy a loaf at full price because I'm craving toast & jam that week).

[super807]

Good question !! You would think so !!

So will bread prices go down because of this?

I noticed the price of Country Harvest bread go down at RCSS several months ago. For a few years the regular price of that bread was around $3.28. For 5 or 6 months now (maybe longer) regular price has been $2.78, with frequent sales at $2.38 or even $2.00.

In theory, the prices should have gone down in the second half of 2015, after the price fixing was "discovered", but I don't think it did. It has gone down now that the price fixing problem has become known.

[super807]

Found this last night... thought it might lighten the mood.

https://www.youtube.com/watch?v=VMUNmAX8C0k

That was a good one. Thanks for sharing.