In a letter to suppliers on
Loblaw said its supply chain handling fees will go up
"These fee changes reflect those supply chain cost increases,"
Industry observers say fee increases will likely be passed on to consumers, contributing to higher food prices.
"This is an example of a unilateral decision made by grocers to increase fees and and get suppliers to financially support their operations," said
Sometimes the higher fees and charges are warranted and reflect the rising cost of doing business, while sometime they are less clear cut, he said.
"It points to why we need a code of conduct," Charlebois said.
In a progress report in July, an industry committee set up to establish a grocery code of conduct said it made significant progress but may require government intervention if it fails to resolve the outstanding matters by November.
Loblaw vice-president of communication
"This includes situations where we pick up, ship and deliver their goods for them," she said in an emailed statement.
"Our costs for handling this business have gone up and consequently we are notifying suppliers of some adjustments to the fees, if they choose to use these services."
Earlier this week, Loblaw announced it would freeze prices on all its in-house No Name products until
Critics warned the company could look to recoup profit losses elsewhere.
This report by The Canadian Press was first published
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