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Metro Inc., the company behind Metro, Food Basics and Super C grocery store banners, says it plans to transition more Metro stores into Food Basics to offer more value offerings for consumers.
Some of those store transitions will also include employee terminations, the company noted in its earnings report.
“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,” said Metro in the report.
Metro adds that the transition will also include the permanent closure of one store, a satellite warehouse, and a dedicated e-commerce fulfillment centre in Montreal. These changes, Metro says, will involve restructuring expenses, including costs to terminate employees.
“The restructuring expenses consisted primarily of employee termination benefits, restoration and site closure costs, and lease-related costs associated with vacated facilities.”
Metro Inc. reported quarterly results Wednesday for the three-month period leading up to July 4, 2026, which included net profits totalling $211.3 million, down nearly 35 per cent from $323 million a year earlier.
The grocery giant says some of its figures last quarter were “unfavourably impacted” by an ongoing labour dispute at a distribution centre in Laval, Quebec.
Metro president and CEO Eric La Flèche answered questions from analysts during a conference call Tuesday, including on the impact of the strike.
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“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,” said La Flèche.
La Flèche was also asked about the specific locations and number of employees being impacted by the store transitions from Metro to Food Basics.
“Out of respect for our employees, we will announce gradually to our stores and our employees as this plan is deployed,” he said.
“A few stores have been advised, will be advised very shortly or have been advised very recently, but not all stores. That will roll out as per our plan. But there’s some in the GTA, there’s one in Ottawa that will open by the end of this fiscal year. And there’s some in other parts of Ontario. ”
A spokesperson from Metro Inc. confirmed in a statement to Global News Tuesday that the Metro stores located at Southgate in Ottawa and the 20 Church Ave. location in Toronto will be included in the transition, but no locations can be confirmed at this time.
The company would not confirm how many employees may be impacted by these transitions and closures.
“These decisions are carefully evaluated on a case-by-case basis to ensure we are offering the most relevant store format for each community. We regularly assess our store network based on a range of factors, including local market conditions and store performance. In these cases, our assessment indicated that a Food Basics store is better suited to meet customer needs in the area,” the statement said.
“Employees at both stores have options available to them under their respective collective agreements, and we have been working directly with union representatives throughout the process. As part of the transition, some employees will be employed at the new Food Basics stores, while others may choose different options available under the collective agreements.”
The changes at Metro come as consumers are looking for value have led other food retailers to adapt to changing demands.
A recent survey report from Equifax found nearly a quarter of Canadian respondents used their savings to pay for day-to-day needs, including groceries, while a fifth said they were relying on lines of credit more than they were last year.
Dollarama has seen sales surge in recent years, especially for what it considers “consumable” products as customers look to stretch their dollars wherever they can.
Walmart also said its customers are increasingly focused on value, especially for grocery and food products at its flagship stores and Sam’s Club.
“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,” said Metro Chief Operating Officer Marc Giroux on the call with analysts.
“We believe this is going to continue, and that’s why we’re continuing to invest in our network and investing in the right store, in the right market as we announced.”
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