‘Wave’ of tariff-related price increases coming, Loblaw CEO warns
Thousands of grocery products could see higher prices in the coming weeks as tariffs trickle down to store shelves.
Loblaw Companies chief executive Per Bank said the grocery and pharmacy retailer expects a “large wave” of increases in the near future as it sells off its inventory.
“Our customers might have seen a ‘T’ symbol on our shelf labels, which indicated that a product has been impacted by tariffs. So far, we’ve been able to limit the number of T symbols on our shelves to a little over 1,000 items. But our inventory is running out, and in the next week or two, the number of products with a T symbol will surge to over 3,000. Within the next two months, that number could peak at over 6,000,” Bank shared on LinkedIn.
He said the majority of products will be unaffected, but customers will see the biggest impact in non-produce categories like natural foods, pantry staples and health and beauty.
“It’s been good to see Prime Minister Carney and other leaders engaging in dialogue with U.S. officials, as we’re all hoping for a rapid de-escalation of this situation. We were also pleased to see the change in policy, where only finished food products from the U.S. are subject to tariffs,” Bank said.
He shared a photo from inside one of Loblaw’s stores, where shoppers have seemingly chosen PC brand orange juice (made with oranges from Brazil) over U.S. brand Tropicana.
“Sometimes, but rarely, it will be the reverse, where our control brand products are affected… as about 4% of our control brand products are sourced from the U.S.,” he said.
“Needless to say, this situation continues to evolve. We’ll continue to do our best to help customers make informed decisions and in cooperation with our vendors to look for more Canadian and non-U.S produced products where at all possible.”
Bank's comments are in line with Loblaw's most recent internal food inflation report, which warned that higher prices would begin appearing on shelves in the near term as retailers sell off their existing inventories.
