Metro’s CEO highlights concerns over tariffs and a weakening loonie impacting food costs
Montreal: Metro is currently in a “wait and see” mode regarding potential tariffs from President Trump. CEO Eric La Flèche mentioned that the weakening Canadian dollar is a big concern, especially since Canada relies heavily on the U.S. for fresh food this time of year.
La Flèche expressed that the dollar’s decline is a significant worry. He noted that if the loonie continues to weaken, it will impact their costs. While they try to source as much as possible from local suppliers, some products just aren’t available in Canada right now.
The loonie has been dropping for months, mainly due to the growing gap between interest rates in Canada and the U.S. The looming tariff threats from Trump and possible retaliatory measures from Canada are only adding to the pressure.
Despite the challenges, La Flèche remains hopeful about the future. He pointed out that while food inflation has been stabilizing, trade disruptions could change that. He’s concerned about the potential impact of a trade war on food prices.
Looking ahead, La Flèche is optimistic about Metro’s growth. He mentioned that they’re coming out of a “transition year” and are ready to benefit from recent investments in their supply chain. They also plan to expand their Moi rewards program into Ontario.
Metro is set to open 12 new stores in 2025, focusing mainly on discount outlets, which have been performing well. However, La Flèche noted that the growth gap is narrowing as they compare to their strong performance over the past few years.
In their latest financial report, Metro raised its dividend and reported a profit increase, showing resilience despite the economic uncertainties. They’re keeping a close eye on the market and adjusting as needed.
