Halifax’s Independent Grocers Weigh in on Price Gouging
HALIFAX – Three of the country’s top grocery store C.E.O.s gathered in Ottawa last week to deny allegations of price gouging. As Canadians continue to pay more for their groceries, Halifax’s independent grocers say they’re skeptical of the big chains’ claims.
Tyler Harland is a manager and butcher for Osprey’s Roost Butchery and Provisions in Halifax. He pointed out that Canada’s record-high inflation rates seem to have hurt everyone but major chains.
“It does definitely seem like they’re benefiting from the inflation by quite a bit… We’re just struggling to get by and trying not to gouge the customer,” said Harland. “[We] try to charge just what we can to be somewhat profitable.”
Kate Pepler is the owner and operator of the Tare Shop, a package-free bulk store found on Dartmouth’s Portland Street. She recently had to shut down one of her locations but says inflation hasn’t affected the price she pays for her products that much.
“Most of our prices haven’t gone up from our suppliers, which means that we can keep our prices where they are,” said Pepler.
Despite their denial of price gouging, Canada’s three major grocery chains continue to report increased profits as grocery prices climb. According to the Toronto Star, if the three chains had kept the same profit margins they had before the pandemic, they would have lost over a billion dollars in revenue.
Pepler said it’s hard to watch customers overpay for products, not just from a competitive standpoint, but knowing that many Nova Scotians are struggling to pay for the increased cost of groceries.
“It’s frustrating when you look at it in the larger context of food security and affordable living. It definitely makes it hard for the community,” she said.
David and Goliath
Krista Armstrong is the owner and operator of Local Source Market, which has two locations in Halifax’s North end. She argues small businesses have been impacted by inflation and supply chain issues even more than the big brands.
“I don’t have the buying power that our major grocery stores have. I can’t buy trailer loads of potatoes at a time and with buying power come lower prices,” said Armstrong.
Despite not being able to compete with the Superstores of the world, Armstrong says she still finds ways to offer affordable products. By building relationships with local farmers and operators and having reduced transportation costs, she is able to offer some of the same products as major chains for lower prices.
Armstrong feels terrible knowing customers may be getting shortchanged by bigger stores.
“The amount of hustle and work that my partner and I put into our to teeny, tiny grocers and the amount of love that we put into these… it’s heartbreaking knowing that there are so many items in my store that are actually cheaper than the conventional grocery store,” said Armstrong.
Community impact
Part of why Armstrong feels the way she does is knowing what an integral part of communities independent grocers can be.
She builds relationships with customers and says the money they spend at her store goes directly back into the community because she lives here and shops at other local businesses.
On top of supporting other small businesses, Armstrong said that many independent grocers get their products from local farms, rather than outsourcing all over the world.
“We’re buying direct from our farmers who are growing beautiful food in our backyard. It’s hard to not get emotional about it,” said Armstrong.
Supporting communities is equally important to Pepler, who emphasized the importance of shopping at your local independent grocer as an alternative and accessible option.
“Being able to provide like affordable, accessible food, especially for folks who don’t have access to vehicles to make the trip out to a big box grocery store, is really important and makes our cities vibrant,” said Pepler.
A tough time for us all
Pepler, Armstrong, and Harland are all intimately familiar with the struggles of operating a small business. But as we continue to feel the lasting impact that the pandemic has on our economy, they hold no ill will towards their customers, who have been hit just as hard as them.
“It does seem to be a bit slower than it usually would be in past years, but I think that is partly due to people’s wallets being tighter,” said Harland.
Armstrong noted that it’s not always easy to support local and that sometimes our definition of what that means can get confusing. She said that in order to be able to keep serving the communities they live in; independent grocers would have to support one another.
“There are actually not a lot of us, and I believe that we’re all stronger together,” said Armstrong.
Joe Thomson is a Huddle student intern, based in Halifax. Send him your feedback and story ideas: [email protected]