Buy Canadian Trend Cooling Down, Says Metro CEO
Canadian consumers are still looking for local products, but Metro grocer CEO Eric La Fleche said the trend is losing a bit of steam.
"Consumers are still buying more Canadian, so we're seeing more growth on Canadian product than non-Canadian product, but it has decelerated slightly," La Fleche told analysts during a fiscal 2025 third-quarter earnings conference call on Aug. 13.
Earlier this year, simmering trade tensions with the United States fueled pro-Canadian momentum, with retailers highlighting local offerings as well as U.S.-sourced products, and brands driving home their Canadian roots.
U.S. tariffs and Canada's counter tariffs have led some food producers to seek price increases from grocers, including Metro. La Fleche says tariffs have driven prices higher for about 3,000 SKUs.
Some suppliers held off on price hikes following counter-tariffs being imposed in March, but increases are happening.
"Teams continue to negotiate to minimize the impact on consumers, and for now, the effect remains manageable," La Fleche said.
Metro also has been searching for suppliers from other countries to rein in the price of goods to keep things more manageable for shoppers who frequent its 980-plus grocery stores.
Tariffs or not, the consumer is trying to keep costs down. "The search for value has been ongoing for a couple of years now or more, so it's the same trends," La Fleche added. "People are searching for value. Promotional levels are high. Private-label sales are high, so we're seeing pretty much the same picture on the consumer side."
