Trade Tensions Ignite Local Loyalty
Canada’s 25 % counter-tariffs on U.S. goods, effective 4 March 2025, have intensified consumer nationalism and price pressures across the aisle.
A Leger poll taken in mid-April found 76 % of Canadians have consciously increased their purchases of domestic brands, the highest reading since February.
Canadian Products Pull Ahead at Metro
Metro Inc.—whose banners include Metro, Food Basics, Super C and Jean Coutu—reports that sales of Canadian-made items are now rising faster than overall store sales, and the gap is widening weekly.
To capture the surge, the grocer has:
- Added bold maple-leaf shelf tags and “Made in Canada” filter buttons online
- Featured local brands in weekly flyers and loyalty-app push notifications
- Piloted end-cap “Canadian Choice” displays in high-traffic stores
Pharmacy Wins: Jean Coutu’s Local Advantage
The patriotism effect extends beyond groceries. Metro’s pharmacy division posted 7.0 % same-store growth, outpacing prescription and front-store averages industry-wide. Executives credit Canadian vitamin, supplement and OTC categories for the lift, alongside expanded generic drug offerings.
Financial Snapshot—Q2 2025
| Metric | Q2 2025 | YoY Change | Notes |
|---|---|---|---|
| Sales | $4.91 billion | ↑ 5.5 % | Christmas shopping days shifted into Q2 |
| Food same-store sales | ↑ 5.3 % | Online food sales +26.2 % | |
| Pharmacy same-store sales | ↑ 7.0 % | Rx +7.8 %; front store +5.3 % | |
| Net earnings | $220 million | ↑ 17.6 % | EPS $0.99 |
| Adj. net earnings | $226.6 million | ↑ 9.8 % | EPS $1.02 |
Supply-Chain Playbook for Health & Wellness Retailers
- Diversify Inputs: Metro is leaning on European, Latin-American and domestic suppliers to soften tariff impact.
- Collaborate on Cost Sharing: Six-week notice periods give vendors time to re-quote and mitigate sudden price spikes.
- Label with Clarity: Prominent origin tags—maple-leaf for Canada, “T” for tariff-affected U.S. items—help shoppers vote with their wallets and build trust.
What It Means for Readers
Drugstores and health-food retailers can ride the same wave by:
- Featuring Canadian-formulated supplements and natural health products in front-of-store promotions.
- Using geo-targeted email and SMS to highlight local brands available for curb-side pickup.
- Negotiating joint marketing funds with domestic vendors to offset promotional costs.
“We’re well positioned to grow in any environment, but spotlighting Canadian products is resonating with customers like never before,” says CEO Eric La Flèche.
Takeaway
The “Buy Canadian” movement has shifted from slogan to sales driver. For retailers in every health-adjacent category, clear origin labelling, local assortment depth and agile sourcing are now critical parts of the inflation playbook—because patriotism, it turns out, rings the till.
