Tuesday, July 22, 2014

Metro takes over two No Frills franchise stores

Metro Inc. is taking over franchising at two Loblaws-owned No Frills stores, one in Elmira, the other in Blenheim.

That arises out of a Bureau of Competition order to Loblaws to divest the outlets because its $12.4-billion purchase of Shopper’s Drug Mart would give it too much market clout in those communities.

The bureau’s chief concern is about Loblaw’s domination of the pharmacy business.

In Elmira, Metro is in negotiations with Paul and Adele Henderson who run the No Frills franchise.

Metro plans to convert it to its Food Basics banner.

About 2,800 Elmira residents have signed a petition opposing the bureau’s order. They want to retain the No Frills store.


Mayor Todd Cowan likened the bureau’s order to consumers shopping for jeans. They want Levi’s, but the government says they have to buy Wrangler.

What I'd like to know is why the bureau has laid no charges yet against Ontario's two largest egg-grading companies who control 90 per cent of the market and, according to e-mails, talk to each other about pricing and about who gets which accounts.