Canadian shoppers have been paying more at supermarket cash registers, but a price war could be on the horizon if the loonie continues to trek higher and consumers react to the weak economy, some industry watchers suggest.
Supermarket chains across the country who have chosen to pass on the ballooning costs of food ingredients and workers' wages to consumers could face pressure from disgruntled shoppers who continue to worry about the possibility of job losses and tight credit.
Sylvain Charlebois, an associate dean at the Johnson-Shoyama Graduate School of Public Policy in Regina, believes that stores will launch an aggressive deep discounting campaign in the coming months.
He said it could be triggered by the recent announcement from Loblaw to slash the prices at some banners in both Altantic Canada and Ontario to keep them competitive.
