This is according to executives at one of the nation’s largest supermarket chains, Metro Inc. Metro reported that while demand for Canadian-made goods continues to outpace imports, the growth rate has eased compared to earlier in the year.
The surge in local purchasing was initially driven by trade tensions with the United States, prompting grocers to expand domestic offerings and highlight Canadian products on shelves. However, ongoing tariffs from both sides have contributed to higher prices for thousands of goods. Metro confirmed that about 3,000 products have been affected, with suppliers pushing for price increases to offset tariff impacts.
While some vendors delayed passing on costs, these increases have gradually filtered through. The company’s negotiating teams have been working to limit the impact on shoppers, and Metro has also sought alternative suppliers in other countries to manage costs.
In its third-quarter results, Metro posted a profit of $323 million, up from $296.2 million a year earlier. That equated to $1.48 per diluted share, compared with $1.31 in the same period last year. Adjusted earnings came in at $1.52 per diluted share, rising from $1.35.
Quarterly sales totaled $6.87 billion, an increase from $6.65 billion the previous year. Food same-store sales rose 1.9 per cent, while pharmacy same-store sales grew 5.5 per cent. The pharmacy boost included a 6.2 per cent lift in prescription drugs and a four per cent rise in front-store sales, fueled by over-the-counter medicines, cosmetics, and health and beauty products.
Metro noted that consumers remain highly focused on managing grocery budgets, with strong demand for promotional offers and private-label goods. This reflects a broader trend of households seeking value, a behavior that has persisted for several years as cost-of-living pressures weigh on discretionary spending.
Despite delivering results in line with expectations, Metro’s share price fell seven per cent on Wednesday to close at $98.58 on the Toronto Stock Exchange. Analysts attributed the drop to heightened investor expectations, noting that the company’s consistent performance and predictable earnings typically support its valuation.
Industry observers say Metro’s strategy remains focused on efficiency gains, particularly from its significant investment in supply chain modernisation. Over the past few years, the retailer has allocated nearly $1 billion to upgrading distribution networks in Quebec and Ontario, positioning itself for long-term competitiveness in an increasingly price-sensitive market.
Canadian shoppers continue to balance loyalty to local products with the need to stretch household budgets. Metro’s emphasis on value and operational efficiency may prove key to sustaining growth in the months ahead.
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