Walmart Canada President and CEO Gonzalo Gebara said Monday that his company saw its profit margin in its grocery section shrink last year as inflation sent food prices skyrocketing.
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Mr. Gebara, who took the reins of Walmart Canada last December, pointed out that retailers must also deal with inflation, just like ordinary mortals who must fill their grocery basket every week.
“Walmart Canada does not attempt to take advantage of inflationary conditions. In fact, Walmart Canada’s gross margin in the food sector fell last year, ”he swore before the members of the Standing Committee on Agriculture and Agri-Food on Monday evening.
Pressed with questions, Mr. Gebara added that Walmart Canada has “increased [ses] food sales last year compared to the previous year”, but that “[sa] gross margin on these sales was lower.
“Consumers only see the final price on the shelves, but in reality there are several points along the chain where inflation has had an impact,” he continued.
According to the senior leader, food inflation, which still reached 10.6% year on year in February – double the inflation rate for the whole economy – is the result of a “perfect storm of external factors that have driven up the price of food”.
The leader of Walmart Canada, with his presentation, followed in the footsteps of his Canadian rivals Loblaw, Metro and Empire Foods, whose leaders have all assured the committee not to take advantage of inflation to line their pockets.
