Understanding the Loblaw Boycott: A Guide | Financial Post

Canadian grocery giant Loblaw Cos. Ltd. is facing a month-long boycott, but its investors seem unfazed as the stock hits a new high. The boycott, initiated by a Reddit group called “r/loblawsisoutofcontrol,” has gained momentum with over 77,000 members supporting it. The movement aims to raise awareness about the high cost of living in Canada and urges consumers to avoid all Loblaw subsidiaries for the month of May.

Despite the boycott, Loblaw’s stock has reached an all-time high of $156.76, remaining in positive territory. The group behind the boycott hopes to have a financial impact on the company and push for changes in pricing and transparency. They are also calling for Loblaw to sign the grocer code of conduct and commit to affordable pricing.

Lead organizer Emily Johnson met with Loblaw’s CEO, Per Bank, to discuss shoppers’ concerns, but the meeting did not yield concrete commitments. Loblaw’s executive chairman, Galen Weston Jr., defended the company during its annual general meeting, calling the criticism misguided.

Loblaw reported a 10% rise in profits in the first quarter, leading to a dividend hike of 15%. The company attributed the increase in profits to higher customer traffic and lower price inflation compared to the general food inflation rate. Despite the boycott, Loblaw’s revenue and earnings have seen positive growth.

The boycott organizers remain determined to continue their efforts, hoping to bring about change in Loblaw’s practices and pricing strategies. The impact of the boycott on the company’s long-term performance remains to be seen.