Canadian shoppers stunned by price difference for PC Optimum members
Some Canadians are displeased with Loblaw after a photo showing a major discount for Halloween candy offered to PC Optimum members made rounds online.
David Moscrop, a Canadian political theorist and writer, posted the image on X earlier this week.
It shows the price tag for a box of 100 Nestle Assorted Minis Halloween candies at a Loblaw-owned store. The box costs $21.99 but is priced at $12.99 for PC Optimum members.
"This isn't a discount for members. It's a tax for non-members because Loblaws wants to harvest your data," wrote Moscrop.
This isn’t a discount for members. It’s a tax for non-members because Loblaws wants to harvest your data.
— David Moscrop (@David_Moscrop) October 21, 2024
This company has zero respect for you. They hate you. pic.twitter.com/WSyF4L308s
"This company has zero respect for you," he added. "They hate you."
Moscrop's post has hundreds of comments on X and Reddit, where shoppers share their thoughts on the PC Optimum points program and Loblaw prices.
Some frustrated shoppers agreed with Moscrop's take.
"It shows what a huge markup they have on have on the product. They're not taking a loss for members," wrote one X user.
One individual expressed the inconvenience of the program due to some of the requirements.
"They also force you to load the app you get certain discounts now. Gotta view their deal ads if you want to 'save' money," they stated.
The discussion also made it to the Loblaws Is Out of Control subreddit.
"Loyalty programs need to offer a significant discount in exchange for your personal data," wrote one Redditor. "Instead, we have the choice between inflated prices or standard pricing with our personal information on sale."
"Where is the discount for essentials like diapers and formula?! Why price gouge us on those kinds of items?" another asked.
Some said they felt the PC Optimum program works no differently than other rewards programs.
"Loyalty programs help you save money and get rewards," wrote one person on X.
"Companies do that because it helps encourage you to become a repeat customer."
"I agree, but at the same time, almost every company is doing something similar. What are we supposed to do?" another asked.
One shopper said that the benefits of the program outweighed the costs.
"I get free groceries quite often by collecting Optimum points," they said. "Go ahead, have my data. Who doesn't collect points for something?"
Like many other loyalty programs, PC Optimum converts dollars spent to points.
Points can be earned in various ways, generally netting 10 to 30 points per dollar spent when shopping at affiliated retailers or with PC Mastercards.
Points must be redeemed in increments of 10,000 (a $10 value). A maximum of 500,000 points ($500) can be redeemed at a given time.
Shoppers can redeem points at over 4,500 participating Loblaw stores across the country, including Shoppers Drug Mart, Loblaws, Real Canadian Superstore, No Frills, and Joe Fresh.
However, while PC Optimum is one of the country's largest loyalty programs, many members claim to be experiencing various issues, including lower point earnings, ignored requests to delete accounts, and unexplained account freezing.
Patrick Sojka, a Canadian expert on loyalty programs and founder of Rewards Canada, likened the PC Optimum program and other loyalty programs to what Costco does with its memberships.
"With Costco, you have to pay to be a member to shop for their warehouse prices, and with the loyalty programs, it's the same," he explained.
"If a non-member goes to any of these stores, they forego earning points, whether it's base earn or a bonus on all their spend or product-specific bonuses. In the end, they all account for being some form of discount for being a loyal member. This is the same thing here."
For Sojka, the bigger question in Moscrop's example is what competitors sell the same product for.
"Is it similar to the $21.99 non-member price, or is it significantly less where the member discount basically matches the competitors?" said Sojka.
"If it were the latter then I tend to agree with the author and it being a 'tax' on non-members."
A quick search of other grocery stores shows that Walmart is selling the same box for $12.97 (on sale from $19.98). London Drugs has the box on sale for $17.99 from its regular price of $27.49. At Costco, a box of 130 candies is also discounted and is currently priced at $20.89.
For those hoping to get the most bang for their buck on Halloween candy, we also conducted a price comparison across four Canadian grocery stores.
"It almost looks like PC is matching Walmart for its members, given that the standard price seems to be above the $20 mark," noted Sojka.
He said he views Loblaw's pricing as "simply a discount for being a member."
"If you don't want to be a member but want a cheap price, buy it at Walmart."
Sojka said he does agree with Moscrop's sentiment about data collection.
"That's what a lot of loyalty programs are being used for today beyond simply rewarding loyalty," said the points expert.
"This is especially so in the grocery world. It's about knowing more about the consumer and shopping habits."
Loblaw has been contacted for comment and this story will be updated when it responds.
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