Weak loonie, Trump tariff threats make ‘volatile situation’ for Metro: CEO
Metro is in “wait and see” mode ahead of potential tariffs from new U.S. President Donald Trump, and is keeping an eye on the weakening loonie at a time of year when Canada relies most on its southern neighbour for fresh food, said chief executive Eric La Flèche.
“The dollar is the big worry,” La Flèche said at a press conference following the grocer’s annual general meeting.
“There’s a consequence on our costs if the Canadian dollar weakens … we’re feeling that pressure.”
The company tries to buy Canadian and local as much as it can, he said, “but there are certain products, especially at this time of year, that we don’t produce in Canada and we don’t sell in Canada.”
The Canadian dollar has been steadily weakening for months amid the widening gap between interest rates in Canada and the U.S., and more recently, threats of sweeping tariffs from Trump and talk of retaliatory tariffs by Canada have compounded that pressure.
The past year saw the continued normalization of food inflation, said La Flèche, but trade disruptions could threaten that.
“I hope this trade war will not concern food,” he said. “It’s a very volatile situation, and we will just have to wait and see.”
Potential trade war aside, La Flèche was optimistic about growth in the coming year for Metro as it exits what he calls a “transition year.”
Speaking at Metro’s annual general meeting Tuesday morning, La Flèche said Metro plans to reap the benefits of recent investments in its supply chain that wrapped up in 2024, and to continue pursuing customer loyalty after expanding its Moi rewards program last year into Ontario.
“We’re in a good position to pursue growth and expansion of this retail network in the years to come,” he said in French.
La Flèche said
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