Consumer trust in grocers has dropped since Loblaw Cos. Ltd disclosed that it has been part of an industry-wide agreement to participate in fixed bread prices, according to a new study that has pushed the topic back into the news.

Loblaw, the country’s largest supermarket retailer, saw a 10-per-cent decrease in consumer trust since the story was first reported nearly two months ago, and overall trust in grocery chains has dipped six per cent.

U of G Prof. Mike von Massow says while it is clear that consumers are unhappy with the news of fixed bread prices, it is not clear whether the impact is significant and lasting. He added that these recent results may not be meaningful, given that consumers have become increasingly cynical about companies and governments and almost expect this kind of activity. He cited Volkswagen, which sold more cars than ever before in 2017 in spite of a significant global scandal.

A professor in the Department of Food, Agricultural and Resource Economics, von Massow studies structure and performance of food value chains, economics of food demand and pricing strategy.

He is available for media interviews.

Contact
Prof. Mike von Massow
mvonmass@uoguelph.ca