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Metro Navigates Tariff Pressures as Supplier Price Hikes Mount
Metro Inc. is feeling the ripple effects of ongoing tariff disputes, with president and CEO Eric La Flèche revealing that tariffs and counter-tariffs now account for roughly 20% of supplier requests for price increases. The grocery chain has already approved hikes on about 3,000 SKUs, though La Flèche emphasized that overall food basket inflation remains in line with Statistics Canada’s 3.1% Consumer Price Index.
While the company would prefer inflation closer to 2%, La Flèche said Metro is negotiating aggressively to limit the impact on customers in an environment where shoppers are increasingly price-sensitive. Tariff-related cost pressures are also beginning to affect health and beauty products, prompting the retailer to explore alternative sourcing from other countries to maintain quality and control prices.
Despite these challenges, Metro posted a strong third-quarter performance, with profits rising to $323 million from $296.2 million a year earlier, and sales climbing to $6.87 billion. Same-store food sales grew 1.9%, while pharmacy sales jumped 5.5%. However, shares dipped 6.82% in midday trading, reflecting investor caution amid the inflationary headwinds.
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