Empire CEO: 'Buy Canadian' Movement Is Here to Stay
The "Buy Canadian" movement shows no signs of letting up, according to Empire Company Ltd. CEO Michael Medline.
Medline spoke at a June 19 earnings call, where executives and investors discussed fourth quarter and fiscal 2025 results. The parent company of banners such as Sobeys, FreshCo and Foodland also touched on what’s to come.
Consumers are definitely seeking Canadian products, he said. "Much of this behavior is becoming sticky. … There are people who have changed their behaviors [who] will not go back, and we’re doing our utmost to make them very happy at our banners. … We don’t have a crystal ball. … But I don’t think that the mindset of Canadians is switching very quickly away from how they felt at the beginning of the year."
Medline said Empire’s approach to tariffs is three-pronged:
- Elevating the local. A "trusted retail and consumer intelligence third party recently confirmed that we have the highest Canadian product assortment in our banners versus our competitors and by a significant margin. It is clear that our customers are voting with their wallets as our sales of Canadian products continue to rise."
- Diversifying the supply chain. A proactive way to "manage threats," Medline says, adding "we have accelerated these efforts in recent months. Our sourcing of U.S. products has continued to drop, and we expect this number to continue to decline as we enter the growing season for produce in Canada."
- Working closely with suppliers. This is to ensure tariff-related price increases are justified and not simply reactionary. "While these are not always easy conversations, we strongly believe our approach is the right one."
Empire addressed several other matters during the earnings call, including:
- Continued investment in digital and data capabilities to gain a deeper understanding of customers and track emerging trends. Analytics tools help optimize promotions and will be refined via partnerships between the advanced analytics team and category merchants.
- Further developing its own e-commerce capabilities and expanding partnerships with third-party delivery services. Last fall, Empire announced partnerships with Uber Eats and Instacart in Ontario, followed by Western Canada in December, Quebec and Atlantic Canada in March, and the Lawtons drugstore banner in May.
- Renovating, converting and opening new stores. Over the last six years, Empire has averaged eight new stores a year. For fiscal 2026, the retailer plans to open 24 new stores, including six new FreshCos. It also plans to renovate between 20% and 25% of its footprint between fiscal 2024 and fiscal 2026, a move which includes enhancing energy efficiency. Empire also plans to improve store layouts, optimize category and product adjacencies, and tailor product assortments for each store.
- Continuing to work on its own brands, particularly via increased distribution, product innovation and supporting Canadian suppliers.
