Buybacks Aren't a Productive Use of Capital, Right?

Loblaw Companies, the country’s biggest grocery chain, reported its finances for 2022 on Thursday. In a year when Canadians felt the squeeze from skyrocketing grocery bills increased by inflation, the retailer posted net earnings of $2.3 billion dollars. Also in 2022, Loblaw spent $1.3-billion on something called stock buybacks, which pulls shares off the market and tends to pump up the prices of those still held by investors and executives. Loblaw isn’t alone in carrying out billion-dollar share buybacks. Today, CBC business journalist Pete Evans returns to explain why so many buybacks are happening, and why critics say they’re happening at the expense of Canadian workers, customers and productivity. For transcripts of this series, please visit: https://www.cbc.ca/radio/frontburner/transcripts