Loblaw raises fees for suppliers in 2023 to offset higher supply chain costs – National

Loblaw Co., Ltd. is raising supply chain handling fees it charges its grocery suppliers and pharmacies.

In a letter to suppliers on October 3, the company said it experienced significant year-over-year increases in many of its supply chain costs, including “cart” costs. or higher freight cost.

Loblaw said its fees will increase on January 1, 2023, with distribution center delivery fees increasing to 1.17% and direct-to-store delivery fees increasing to 0.36%.

Sylvain Charlebois, Dalhousie University professor of food distribution and policy, said the announcement was an example of grocers’ unilateral decision to raise fees and ask vendors for financial assistance. main for their activities.

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He said sometimes higher fees and charges are warranted, but sometimes not, and this shows why the grocery industry needs a code of conduct.

In a progress report in July, an industry committee set up to establish a grocery code of conduct said it had made significant progress but may need government intervention otherwise. resolved the outstanding issues in November.

At this time of year, the company advises suppliers to pay a fee to ship through its network for the following year, said Catherine Thomas, Loblaw’s vice president of communications.

“This includes situations where we pick up, ship and deliver them,” she said in an emailed statement.

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“Our costs to process this business have increased, and as a result, we will notify providers of some adjustments to fees, if they choose to use these services. “

Earlier this week, Loblaw announced it would be fixing prices on all of No Name’s in-house products until January 31, 2023, in an effort to help customers cope with inflation.

Critics warn that the company may seek to recoup profit losses elsewhere.

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Click to play video: ''Inflation Explained' at the Grocery Store'

Explaining ‘inflation’ at the grocery store

& copy 2022 Canadian Press


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