Metro says grocery shoppers still hunting for deals even as inflation eases
Shoppers are still searching for more affordable options at the grocery store even as food inflation eases, according to Metro Inc.
The Montreal-based grocer released its second-quarter earnings on Wednesday and reported that profit fell compared with a year ago as its sales edged higher.
Metro says food same-store sales were up 0.2 per cent in the quarter and up 2.7 per cent after adjusting for the Christmas week shift.
Pharmacy same-store sales were up 5.9 per cent, boosted by a 6.0 per cent increase in prescription drugs and a 5.8 per cent gain in front-store sales.
Front-store pharmacy sales got a boost in the second quarter due to a strong cough and cold season in Canada, Metro CEO Eric La Fleche told analysts on the company’s earnings call Tuesday morning.
Cash-strapped consumers are swapping to Metro’s private labels on products like meat as they continue to feel squeezed by rising cost of living pressures, according to Marc Giroux, Metro’s executive vice-president and chief operating officer for food.
That comes despite signs that food inflation has been easing at the grocery store. Annual inflation at the grocery store declined to 1.9 per cent in March, Statistics Canada reported last week,, continuing a trend of cooling price pressures in recent months.
“While food inflation is stabilizing overall, the economic context is putting lots of pressure on key consumers. So consumers are continuing to trade down,” Giroux told analysts on Metro’s earnings call Tuesday.
On Wednesday, the company also said it’s launching its Moi Rewards loyalty program in all Metro and Food Basics stores later this year. It will withdraw from Air Miles and terminate its Thunder Bucks program later this year as part of the shift.
The
Read more on globalnews.ca
