Toronto – April 17, 2023 – Canadian food retailers have shown healthy profit margins throughout the pandemic and continue to make good on their bottom-line even as food prices sky-rocket, leaving many wondering is profiteering afoot?
According to the latest available data from Statistics Canada, across all grocery stores in 2021, total revenue stood at just over $1 billion with total expenses sitting at $931 million, leaving $69 million in net profits or a 25.5% profit margin.
However, looking at the nation’s top grocery retailers this profit margin is far more pronounced, with $592 million in total revenues and $465.3 million in total expenses, leaving $127 million in profits at a margin of 43.5 percent.
With record-high profits during a time when many had no other option than dine-in at home, it seems like the country’s largest grocers are now netting big gains from soaring food prices while still maintaining healthy balance sheets. As government stimulus winds down and borrowing rates increase perhaps prices are next to stabilize.