I wish Aldi would come to Canada

[Northern Light]

I don't think ordering to divest banners makes any sense. What stops a target company from just rebannering said stores?

The object here is that Loblaw and Empire eliminate competition by buying it out.

Loblaw has swallowed countless competitors over the years.

Some, are regional outposts, and that's less of an issue.

But Loblaw has also swallowed a potential competitor in T&T as an example.

It swallowed many others before that, that have long been consigned to history. The small brand in Toronto known as Valu-Mart, was largely Mr. Grocer at one point.

Empire has swallowed Farm Boy and Longos in Ontario, while already having Sobeys, and in BC they also acquired regional player Thrifty.

Amended competition rules should block there re-acquisition by any dominant player.

If the issue is lack of competition, that competition takes place in local trade areas, and any such divestiture should be site by site. I am surrounded by three Metros is pretty close proximity. It would be nice if they were forced to divest some of these for greater consumer choice. The compettion bureau should be reviewing local markets where any one retail conglomerate has excessive share (> 20%?) on a market by market basis and ordering them to divest specific locations.

I take no issue w/doing this as well; though it is more complex and time consuming, with analysis required on a market by market, store by store basis.

 

[Northern Light]

Here's something for some of you to play with............. a 2023 price comparison of select products between Aldi in NYC and Aldi in the UK.

We visited Aldi in the US and the UK and found that everyday grocery staples, like eggs and bread, were much more expensive in America

Insider found that prices in the stores were relatively affordable. However, some items, like pasta, salad, and eggs, were much cheaper in the UK.

www.businessinsider.com

Note that prices will be in USD and Pounds Sterling.

To roughly get the Canadian equivalent in price terms from USD you want to multiply by 1.37

For British Pounds use 1.7

 

[DSC]

https://www.cnn.com/2024/04/19/business/aldi-aisle-of-shame-fans/index.html

 

[afransen]

I take no issue w/doing this as well; though it is more complex and time consuming, with analysis required on a market by market, store by store basis.

Surely if we're talking about disrupting a $150B industry we can have some bureaucrats and consultants do a bit of homework. It would be less capricious than just willy nilly ordering companies to divest regional banners.

I think the T&T example is rather curious. There are quite a few options for Asian supermarkets in my area--Oceans, Nations, Seafood City, Terra, and a whole laundry list of independents/mom and pops..

 

[Northern Light]

Surely if we're talking about disrupting a $150B industry we can have some bureaucrats and consultants do a bit of homework. It would be less capricious than just willy nilly ordering companies to divest regional banners.

As someone with first-hand knowledge of the industry in question, my proposal is not 'willy-nilly' or capricious; any more than the purchase of those banners was in the first place.

You're welcome to disagree w/my suggestion or have an alternative preference, but my suggestion is a common way monopolies and oligopolies have been split apart in the past.

See breakups of Standard Oil and AT&T into the Baby Bells.

Example 1 https://en.wikipedia.org/wiki/Standard_Oil

Example 2: https://en.wikipedia.org/wiki/Breakup_of_the_Bell_System

I think the T&T example is rather curious. There are quite a few options for Asian supermarkets in my area--Oceans, Nations, Seafood City, Terra, and a whole laundry list of independents/mom and pops..

The issue is breaking up the companies into working parts that can compete with one another.

Transferring one Metro to Loblaws may engender slightly more competition locally, but probably not.

Part of what one is aiming to do is create more buyers in the market, more warehouses, more category managers. (companies under one umbrella often share many of these)

T&T the independent company will try to poach a Loblaws customer; T&T the Loblaws owned subsidiary is less likely to.

Its also a measure to reduce the bullying and market manipulation powers of the largest grocery empires.