While grocers' profits could top $6 billion this year, according to one organization, Metro's CEO vowed to a parliamentary committee in Ottawa on Monday to do everything he can to avoid hurting Quebecers' wallets.
“We strive to offer the best possible price for all of our banners. We open discount stores. We are doing everything we can,” emphasized Metro CEO Eric La Flèche when he visited the Standing Committee on Agriculture and Food (AGRI) in Ottawa on Monday afternoon.
Angered by politicians asking if he would do more to cut prices in stores, the Big Boss admitted that the context meant “it's too expensive” and that “it hurts” but said, that inflation is even worse in other countries.
“Our costs have increased significantly in the last two years. Our profit margins have not increased. This is what needs to be emphasized. Yes, our sales have increased with inflation. Yes, our profit levels have increased, but our margin percentages have not increased,” he explained.
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$6 billion milestone
Profits in food sales at grocery stores across the country have more than doubled compared to pre-pandemic levels, according to economist and Center for Future Work director Jim Stanford.
“Grocery retailers generated net income of nearly $6 billion in 2022, up from $2.4 billion in 2019 and an average of $1.8 billion per year in the five years before the COVID-19 pandemic Committee.
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“In the first nine months of 2023, grocery retailers earned $4.6 billion; At this rate, total profits for 2023 will exceed $6 billion,” he even writes.
From a briefing by the Center for Future Work, December 2023
scapegoat
In mid-November, the Metro big boss said in an interview with the Journal that he had “a little” the impression that he was playing the role of scapegoat on the inflation issue.
“We are the last link in a long chain. There are price increases across the chain and we are last in front of the customer, so it is somewhat normal that we switch to cash,” he said.
Last Thursday, Le Journal reported that a family's grocery bill would cost just over $700 more next year, according to a report from Dalhousie, Guelph, Saskatchewan and UBC universities.
“I understand that people can get upset”
Cooked by Rosemont-La Petite-Patrie NDP MP Alexandre Boulerice, Metro's No. 1 Eric La Flèche had to defend his total compensation of $5.4 million in 2022 in committee in Ottawa on Monday.
“I understand that people can be upset. I understand that these are large amounts. “Nobody is saying that these are not large quantities,” Eric La Flèche finally told the Standing Committee on Agriculture and Food (AGRI).
“But it is the compensation that is competitive and we are in a competitive market,” he added.
“More than 155 times»
During the exchange, the NDP MP pointed out to him that he earns “155 times” the average salary of the cashier at his supermarkets, who often earn slightly more than minimum wage.
“Don't you think that's a bit indecent at some point?” the Quebec MP asked the head of Metro.
The company's number 1 replied that his remuneration was left to the board of directors.
“I’m ill-equipped to discuss my own compensation,” he replied.
“Executive compensation at Metro is normal and competitive,” he concluded.
– In collaboration with Raphaël Pirro
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