Walmart, Costco join major retailers and sign onto grocery code of conduct
Walmart and Costco, the two remaining holdouts for the grocery code of conduct, have agreed to join the agreement.
The federal, provincial and territorial agriculture ministers announced on Thursday that all major retailers have agreed to join the code of conduct, including Walmart and Costco, which until now had yet to sign onto the agreement.
"After years of work and widespread industry participation, we are pleased to announce that all major retailers have agreed to join the Grocery Sector Code of Conduct," the statement read.
"This includes Loblaw, Sobeys, and Metro, and most recently, Walmart and Costco. This is a positive step towards bringing more fairness, transparency, and predictability to Canada’s grocery supply chain and for consumers."
The grocery code of conduct is aimed at setting standards for dealings between suppliers and grocery retailers. The process of creating a code was initiated to address fees that large grocery retailers charge suppliers, an issue that cropped up in 2020.
The agreement appeared to be in jeopardy last year after top executives from Walmart and Loblaw said they would not sign onto it, citing concerns about higher costs. Empire CEO Michael Medline, who has advocated for the code of conduct, said in December that the future of the code was "in dire straights" and that it would be "a sad day for Canadians and for the industry" if other major retailers did not sign onto the code.
The House of Commons committee studying food prices told Loblaw and Walmart in February that if they didn't sign on, it would recommend the code be made law.
Loblaw agreed to sign onto the code of conduct in May following six months of negotiations. At the time, the company said the underlying principles of the code hadn't changed, but that it worked with the committee and interim board in charge of drafting the agreement to "provide the clarity we thought it lacked the last time around." CEO Per Bank told The Canadian Press that "the code is now fair, and it will not lead to higher prices."
Industry Minister François-Philippe Champagne has said that a grocery code of conduct "will contribute to improving the strength and resilience of Canada's supply chain." On Thursday, Champagne called Walmart and Costco's addition to the code "a big step forward for fairness and transparency."
Great news! We're thrilled to see Walmart and Costco joined the Grocery Code of Conduct! Now, with Loblaw, Sobeys, and Metro, all five major retailers are on board. A big step forward for fairness and transparency!
We will keep fighting for consumers.https://t.co/0eEYJAupZV— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) July 18, 2024
With files from The Canadian Press.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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