Full Breakdown
Metro Inc. to Convert Ten Ontario Stores to Food Basics Amid Profit Decline
8/13/2026, 5:50:13 AM
Core Development: Store Conversions and Closures
Metro Inc., the parent of Metro, Food Basics and Super C, announced a reorganization of its Ontario network that will convert ten Metro locations to the Food Basics discount banner. The plan also calls for the permanent closure of one Metro store, a satellite warehouse and a dedicated e-commerce fulfillment centre in Montreal. Employees affected by the transitions will receive termination benefits, restoration costs and lease-related expenses, according to the company’s earnings report.
Financial Context and Market Pressures
For the three-month period ending July 4, 2026, Metro reported net profits of $211.3 million, a drop of nearly 35 percent from $323 million a year earlier. The company attributed part of the decline to an ongoing labour dispute at a distribution centre in Laval, Quebec, which it said continues to suppress same-store sales. A recent Equifax survey cited in the report shows a growing share of Canadian shoppers relying on savings and credit to cover groceries, prompting retailers to emphasize value-oriented formats.
Official Statements & Responses
President and CEO Eric La Flèche explained that the strike and negative same-store sales are directly weighing on results. Chief Operating Officer Marc Giroux said consumers are increasingly focused on private-label and promotional purchases, reinforcing Metro’s investment in the right store format for each market. A Metro spokesperson clarified that the selected locations—such as the Southgate store in Ottawa and the 20 Church Ave. site in Toronto—were chosen after assessing local market conditions, and that employees will have options under their collective agreements.
Data & Statistics
- 10 Metro stores slated for conversion to Food Basics
- 1 Metro store, a satellite warehouse and an e-commerce centre to be closed
- $211.3 million net profit for the quarter ending July 4, 2026
- 35 % profit decline from $323 million a year prior
- Ongoing labour dispute at a Laval distribution centre affecting sales
Verbatim Quotes
- “As part of our continued efforts to address our customers’ ongoing search for value and to strengthen our competitive position in targeted markets, we are proceeding with a reorganization of our Ontario store and distribution network which will result in the conversion of 10 Metro stores to the Food Basics discount banner,” — Quebec. Metro, spokesperson
- “As long as we are on strike or as long as our same-store sales remain negative, that is why it is continuing to have an impact on our results,” — La Flèche. La Flèche, president and CEO
- “Consumers are focused on value. That’s proportionately buying private label, participating to promotion, and we’re continuing to see greater volume and discount than in conventional,” — Metro Chief Operating Officer, said metro chief
