Walmart, Loblaw still resisting Canada’s grocery code of conduct

Bill Wilson

Walmart and Loblaws have still not committed to Canada’s grocery code of conduct, reports the Canadian Press.

The code of conduct establishes rules for negotiations between retailers and suppliers and also includes a dispute resolution process. For the code to be effective, all major grocers need to be on board.

Documents obtained through the Access to Information Act note participation by some of the largest retailers, including Walmart and Loblaw, is still to be determined.

Loblaw and Walmart met with the House of Commons Committee on Dec. 7 and told lawmakers they could not sign off on the code because they believed it would raise food prices. Loblaw believes the agreement would create a $1 billion spike in food costs.

The stance by Loblaw and Walmart put plans to open a grocery code adjudicator office on hold.

In early April, Michael Medline, president and CEO of Sobeys’ parent Empire Co., said at a Retail Council of Canada event that he does not believe the grocery code of conduct would lead to higher prices.

According to a report in The Canadian Press, Medline said he hopes the grocery code, which would include guidelines for negotiating with suppliers as part of an effort to battle inflation, could help reduce prices for consumers.

A letter from the House of Commons committee in mid-February threatened that if Loblaw and Walmart did not join the code of conduct, they would not hesitate to recommend that federal and provincial governments adopt legislation to make the code mandatory.

In the meantime, the language in the code of conduct is being reviewed and could be changed to provide more clarity.

Loblaw said it is still actively engaged in the code of conduct process. Walmart has also said it will continue to work constructively with the industry on the topic.