Loblaws, Metro post gains as grocery prices drop

Profits are up and the steaks are lower

Attention shoppers: Several grocery items are about to become more affordable.

A pair of Canadian grocery chain giants are adjusting for a deflationary period by continuing to lower prices on some items, with meat specifically dropping in cost, the Canadian Press reports.

The Canadian Press, citing data from Statistics Canada, noted “one kilogram of pork chops, for example, is down from $13.16 in Sept. 2015 to $12.55 this past September. One kilogram of ground beef, meanwhile, dropped from $12.96 to $12.40 during the same time period.”

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“During the [third] quarter, we saw the grocery market shift from an inflationary environment to a deflationary one,” said executive chairman and president of Loblaw Companies Ltd. Galen G. Weston. “We’re reducing prices to see if we can draw the customer back in.”

Loblaws reported its third-quarter profit was up in 2016 compared to 2015, while Metro’s fourth-quarter was up 10 per cent from the previous year.

So it’s good news for consumers looking to fill up on pricier cuts of meat and also good news for millionaire grocery store magnates’ wallets.

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