TORONTO – The grocery price wars that have pushed a kilogram of bananas below the price of a chocolate bar may be good news for consumers' wallets, but those who watch the industry see a race to the bottom that may leave shoppers with less selection and dwindling customer service.
Grocery wars are not new in North America, but they got a boost this past year as U.S. giant Target entered the Canadian market, forcing Walmart to up its game in the grocery department, and spurring a new wave of consolidation involving heavyweights such as Loblaw and Sobeys.
Kyle Murray, director of the school of retailing at the University of Alberta, said that while all the competition is likely to lower prices in the short term, "it also forces the companies to do things they may not otherwise do."
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