The grocery wars are heating up and heading east, amid signs that consumers are becoming concerned about higher prices as the industry consolidates.
Less than two weeks after Loblaw Cos. Ltd. announced a $12.4-billion takeover of Shoppers Drug Mart Corp., arch-rival Wal-Mart Canada Corp. launched its first super centre in Atlantic Canada, with a full offering of fresh fruits, vegetables and meat, and plans for eight more big stores in the region this fiscal year. Loblaw and Sobeys Inc., the country’s second-largest grocer, dominate the field in the Maritimes.
By the fall, U.S. discount rival Target Corp., which started to open stores in Canada in March, will roll out its first outlets in Atlantic Canada, putting even more pressure on incumbents.
This comes as a new poll finds that most consumers – 43 per cent – say that Loblaw’s takeover plan will lead to less competition and higher prices. Canadians in the Atlantic provinces (53 per cent) are the most likely to think competition will suffer, according to Forum Research Inc.
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