Loblaw’s Chief Financial Officer Richard Dufresne says the company is doing all it can to keep prices low amid criticism and says the chain will look to expand through new discount stores. 

In an interview with BNN Bloomberg on Friday, Dufresne said inflation has been a big issue for Canadians, but compared to other countries Canada has relatively low inflation. However, he added that doesn’t relieve the “pressure and frustration” Canadians face. 

“So we're doing everything we can to keep prices low,” he said. 

“And the way we measure it is by comparing our internal inflation measure, which is a subset of CPI (consumer price index), to the food CPI. And it's been three quarters in a row now that our internal CPI number is lower than the national food CPI number. So therefore we are a factor in bringing food prices down in Canada.” 

On Wednesday, the grocer reported its first-quarter earnings with annual profit and revenue gains. Loblaw said profit available to common shareholders rose nearly 10 per cent year-over-year to $459 million, while revenue reached $13.58 billion from $13 billion the previous year. The retailer also raised its quarterly dividend by 15 per cent to 51.3 cents per share. 

Since inflation started rising partway through 2021, Dufresne said the company started to see a shift to discount items, which he said have been leading the business ever since. 

“The biggest proportion of our sales is in discount food. So therefore we've been benefiting more than others because of this exposure,” Dufresne said. 

Going forward, he added that the company views discount stores as the “future” of the business. 

“This year, it's the first year where we're going to be building close to 50 stores,” he said adding that the majority of will be discount locations. 

Dufresne's comments come amid a May boycott targeting the company as grocery chains have faced public and political criticism for food prices and profits. Emily Johnson, one of the boycott’s organizers, said the goal is to have a financial impact on Loblaw and hopes it can educate the public and gain government attention. 

During the grocer’s annual meeting on Thursday, Loblaw Chairman Galen Weston addressed criticisms of the company, characterizing it as “misguided criticism.” 

“As a well-known company and Canada's largest grocer, it is natural that Loblaw would be singled out as a focal point for media and government and of course consumer frustrations,” he said. 

With files from The Canadian Press.