Downtown Winnipeg grocery store, unit pricing pitched to cut grocery costs

Manitoba's Finance Minister Adrien Sala announced that the provincial government is exploring new legislation to tackle rising grocery costs, guided by a recently released report. The report, commissioned by the government, analyzes how grocery prices impact Manitobans and identifies potential government tools to enhance affordability, boost competition, support local food systems, and protect consumers.

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This study will help guide the next steps. It brings together data, research, and policy expertise to better understand how grocery prices are affecting Manitobans and what tools are available to government to improve affordability, strengthen competition, support local food systems and protect consumers.

Key recommendations include standardizing unit pricing across all Manitoba grocers, a practice already in use in Quebec. This would display the cost per individual item, offering consumers a clearer comparison than container prices alone. The government is also considering a proposal to establish a new grocery store in downtown Winnipeg, aiming to provide more shopping options and price awareness for residents and workers in the area.

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There’s a limited amount, I think that a provincial government could do to make lasting and significant changes.

To address increasing costs in food production, transportation, and distribution, the report highlights the advantages of expanding local food distribution methods, such as community gardens and co-op stores. However, it also acknowledges that broader issues like geopolitical tensions and global supply chain disruptions contribute significantly to price spikes. Fletcher Baragar, an associate professor of economics at the University of Manitoba, noted that provincial governments have limited power over factors affecting food grown outside Manitoba. He suggested that improving transportation infrastructure, including highways and railways, could help reduce back-end costs and ensure efficient goods flow, though significant price changes might not be immediate.

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Making sure that there are competitive opportunities for new businesses to come in within the market is, I think, important. But, again, those are not things that are really going to change prices in the very short run.