The Globe and Mail says the Competition Bureau is continuing to investigate certain pricing practices employed by Loblaws with its suppliers. In one example of such a policy, says the Globe, Loblaws is able to apply a retroactive discount, meaning it gets the goods for less. All these little devices are built into the transaction when a supplier deals with a retailer as powerful as Loblaws. The practical effect of such a retroactive discount would be that Loblaws is in a position to sell the product for less than others. As any one who shops there will know, Loblaws is very calculated about what gets on the shelf and what doesn’t. In some cases, it doesn’t seem to care much whether popular products disappear. Of course, big suppliers have their tricks too. The Globe article is written by the retailing reporter Marina Strauss. She says that some suppliers, while pleased with Loblaw’s decision, were concerned that the bureau could wind down its inquiry following notice from Loblaws that it will end the discount device. They worry the bureau might close down on its probe without formulating guidelines on the matter.
