Historically speakimg, it's rarely good when the general public panics over their money, even if it's reasonable. When everyone tries to withdraw everything, it's called a "bank run".

Banks use "stand-in" money to make/keep money. The know most people would want to keep some of their savings, so they temporarily use some of that money to lend out and to make their own money. That sounds rough, but with many thousands of people, it can work without anyone missing their money when they need it. Those loans are used for home ownership, opening businesses, and more.

If everyone believes the bank is running out of money, they will likely rush to withdraw theirs before it's too late. This can just multiply the problem, and a bank may end up shuttering for good.

I'm not saying that we are anywhere near that point, but people don't always need a guaranteed reason to panic.

Long read ahead.

Loblaws is FAR from alone in terms of being part of the cause. I work in food manufacturing for a very big company.

For at least two years in a row now, my company has held a large meeting to tell us that they are making record profits.

This company has its hand in a pretty large variety of products. If you live in Canada, the US, or Mexico, there is a very good chance that you have either eaten their products or purchased them. If you're from the UK, you've probably seen some of their products on shelves, too. For my job safety, I will not disclose which company, although it's probably not the one you're thinking of. They have a LOT of sub-brands, and I probably would have never made the connection between them if I didn't work with those products myself.

I agree that this goes beyond just Loblaws. Every rung on the ladder is trying to squeeze as much profit as possible. You have the ingredient manufacturers. You have the packaging manufacturers. You have the transportation companies. You have the food manufacturers. You have the retailers. Many manufacturing companies work with multiple suppliers. Every step adds more to the cost. Everyone wants their profits.

If companies throughout the chain decide to charge more, the cost can become compounded. My company sells to Loblaws. If my company charges new high prices, Loblaws' will use my companies new high prices as a base-line for their own profit goals. That 20% to 27% difference is likely from profiteering behind the scenes. Some of our products have nearly doubled in retail cost over the last 5 years.

I work at one company. I previously believed that it wasn't that big. I doubt that we are the only company to be like this within Canada.