Loblaw CEO says tariffs driving shifts in grocery shopping, with sales of some U.S. goods down as much as 50%
In a LinkedIn post Tuesday, Loblaw president and CEO Per Bank said sales volumes on products marked with a 'T' — indicating that they're directly sourced from the U.S. — declined 15 to 20 per cent, demonstrating that there is a 'strong desire by consumers to continue supporting Canadian products and brands.'
Some declines are nearer to 50 per cent, where stronger alternative options are available, he adds.
The update follows U.S. President Donald Trump's Thursday announcement that he'll impose 35 per cent tariffs on Canadian imports from Aug. 1, and Statistics Canada's latest inflation numbers published last week.
'June grocery prices increased at a slower pace than May,' Bank said. 'Hidden within that positive news though, is the fact that tariffs continue to place inflationary pressures on grocery costs. This shows that retailers are generally doing a good job at managing the impacts of these tariffs for Canadians.'
This year, around 30 per cent of the inflationary cost increases Loblaw is facing are directly tied to tariffs, he adds.
A few months ago, Bank said he expected to put a 'T' symbol on about 6,000 products directly sourced from the U.S. Now, he expects that number will move closer to 7,500 as the full effects of countermeasures are felt.
Meanwhile, Loblaw is in search of new non-tariff impacted suppliers, and added another 70 new suppliers in its second quarter, adding up to 100 new Canadian vendors this year, he says.
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