Metro doubles down on shift towards more discount grocery stores

Metro Inc., the parent company behind grocery store chains Metro, Food Basics and Super C, announced plans to transition some of its Metro stores into Food Basics to offer more value offerings for consumers. In its earnings report, the company revealed that it intends to convert 10 Metro stores to the discount Food Basics banner, which will also involve closing one store, a satellite warehouse, and a dedicated e-commerce fulfillment centre in Montreal.

The restructuring will result in employee terminations and restructuring expenses, including costs associated with employee termination benefits, restoration and site closure, and lease-related costs.

Metro reported net profits of $211.3 million for the three months leading up to July 4, 2026, a nearly 35% decrease from the previous year's $323 million. The company attributed some of the lower figures to an ongoing labour dispute at a distribution centre in Laval, Quebec. Metro's president and CEO, Eric La Flèche, explained during a conference call that negative same-store sales during the strike period have continued to impact the company's results.

He added that some store locations are being transitioned to Food Basics, with several in the Greater Toronto Area (GTA) and Ottawa expected to open by the end of the fiscal year.

The company declined to confirm the exact number of employees affected by the store transitions and closures, stating that the decisions were made on a case-by-case basis to ensure the most relevant store format for each community. Metro emphasized that they regularly assess their store network based on local market conditions and store performance, ultimately deciding that a Food Basics store would be better suited to meet customer needs in the affected areas.

Employees at the impacted stores will receive options under their collective agreements, with some joining the new Food Basics stores and others choosing alternative options. The changes come as consumers increasingly prioritize value, with recent surveys indicating that a quarter of Canadians are using their savings to pay for day-to-day needs, including groceries, and a fifth are relying on lines of credit more than they were last year.