For months, the Canadian government and some consumer advocates have been increasing the pressure on Walmart and Costco to join the grocery code of conduct.
Metro, Empire, and Loblaw, the other three major retailers, have already signed on.
The CEO of the Food, Health, and Consumer Products of Canada Association, Michael Graydon, says because it’s a very competitive business, it was essential that all of the retailers got involved — an all-or-none situation.
The code of conduct is aimed at leveling the playing field for suppliers and small retailers, which the government insists is a positive step in bringing more fairness, transparency, and predictability, as well as stability to the grocery supply chain. This is all at a time when consumers have been hit hard by higher food prices.
"We talk on behalf of 40 million people," said Francois Philippe Champagne, Canada’s Minister of Industry, Innovation, and Science. "Forty million people are saying we want a grocery code of conduct in this country. We want everyone to be in and I would say it would be an untenable position for Costco and Walmart to disregard the demand of the federal government but also of Canadian consumers.”
While the voluntary code of conduct is aimed at stabilizing prices, that does not mean lowering them. Walmart says it is willing to support the code, but there are still questions about governance and dispute resolution. Ottawa is also looking to increase competition in the sector by encouraging other foreign grocery concerns to open in Canada.
Grocery prices in the country have risen by more than 22 percent over the past four years.