Loblaw still adding Canadian products but CEO says 'Buy Canadian' trend may not last
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Loblaw Cos. Ltd. says it's still working to stock its grocery store shelves with more Canadian products as shoppers look for local alternatives during the Canada-United States tariffs-driven trade war, but the company's chief executive admits the shift may not last.
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'We recognize that Canadians care deeply about the region of the product they purchase and we continue to actually seek out Canadian growers and manufacturers for the products we sell,' Loblaw president and chief executive Per Bank told analysts on a conference call Wednesday, as the company reported its first-quarter profit rose compared with a year ago.
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'Just before this meeting, I was down in the test kitchen and I was observing that they are testing a lot of new products,' Bank said.
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'They have been really, really busy to help mitigate the tariff situation so we can buy less from the U.S.'
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With tariffs adding to pressure on the cost of some food items and other essentials, Bank said the grocery retailer is 'working diligently to keep prices as low as possible.'
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Earlier this year, Loblaw began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs. It also added a 'swap and shop' feature to its loyalty app to help shoppers find Canadian products more easily.
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Asked if he anticipates the 'Buy Canadian' trend will persist, Bank said he was hopeful, but predicted that 'maybe a third of it will stick' long term. He said price and quality are still the most important factors customers consider when choosing which products to buy.
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'If price and quality is best (for) a Canadian product, then they choose those, but if it's a foreign product, they will choose that,' said Bank.
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'Right now, they prefer Canadian products. I would say if the price is almost the same, like up to five per cent different, then customers buy Canadian, so I hope it sticks.'
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But he said the Bank of Canada needs to be running a more 'nuanced playbook' now to respond to some increasingly common shocks: supply chain disruptions, trade conflicts and extreme weather to name a few. An overheating economy running up against a supply disruption is the kind of inflationary fire Macklem is trying to avoid in this latest crisis. 'The economy does not work well when inflation is high,' he said. 'And the primary role of the Bank of Canada is to ensure that Canadians maintain confidence in price stability. That's all we can do for the Canadian economy. That's what we can do for Canadians. And that's what we're focused on.' Later in the day on Wednesday, the Edmonton Oilers took Game 1 of the Stanley Cup finals. The Canadian team was down but roared back to win 4-3 in overtime. It's still early in the Bank of Canada's response to the latest global shock. But with any luck, Macklem's team might also get a leg up with lessons learned the last time they faced big odds. This report by The Canadian Press was first published June 7, 2025. Craig Lord, The Canadian Press
