Industry Snapshot: Canadian food retail profits continue to rise

Toronto – January 30, 2024 – According to the Centre for Future Work and economist Jim Stanford, industry-wide, food retail profits in 2023 more than doubled from levels typical before COVID.

Economy-wide inflation in Canada slowed down notably in 2023.  Food price inflation was a particular challenge for Canadians struggling to cover their basic necessities. Food inflation has also slowed but remains higher than overall inflation.

The latest industry-wide financial data on food retail show that food retail profits have more than doubled since pre-pandemic norms, and profits continue to grow. In 2023, food prices increased 5.6% compared to general inflation of 3.1%.

Food retailers earned net income of almost $6 billion in 2022, compared to $2.4 billion in 2019, and an average of $1.8 billion per year in the five years before COVID. In the first nine months of 2023, food retailers earned $4.6 billion; year-total profits for 2023 at that rate will exceed $6 billion.

In December, Centre for Future Work director Jim Stanford was invited to the House of Commons Agriculture and Agri-Food Committee to share the findings of his research on food prices, supermarket profits, and related topics.