Loblaws reporting 10 per cent bump in Canadian product sales

Loblaws says usage of its app that helps shoppers find Canadian products has gone up by 75 per cent in recent weeks.

As Canadians look to support domestic products as much as possible amid tariff threats from the White House, one Canadian grocer is already seeing a big boost in sales for Canadian products.

Loblaws, Canada’s largest food retailer, recently said sales are up 10 per cent on Canadian-made and produced products in recent weeks. The company also recently introduced an update to its PC Optimum to make it easier to find Canadian products, with its usage up 75 per cent in recent weeks.

“In the food retailing world, 10 per cent is quite significant,” says Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University. “The gold standard is product of Canada. If it’s a product of Canada, it means that all ingredients are made in Canada, and the product was processed and manufactured in Canada.”

Shoppers will also commonly see “made in Canada” on many labels. The difference between “made” and “produced” is “made in Canada” means only 51 per cent of the product is Canadian.

Charlebois says grocers across the country are trying to make it as easy as possible for shoppers to identify Canadian items. While shoppers are trying to buy Canadian, Charlebois notes it may cost a little more.

“If you decide right now to go into grocery store and “Candianize” the entire food basket and avoid American products, you’re looking at a premium of eight-to-10 per cent,” he says. “Are Canadians buying Canadian because they want to buy Canadian, or are they buying Canadian because they’re against something else? And if it’s the latter, it essentially means that the momentum that we see which supports Canadian products may not last.”

Business professor Ed McHugh believes the trend of buying Canadian is here to stay.

“I think you’re seeing some long-term consumer behavior change here, and I’m not sure will ever go back,” McHugh says. “I think this is a lifetime changing event in the world of international relations, and in the world of consumer behavior and marketing.”

He says many Canadian companies have tried to make shoppers aware where they come from. McHugh says everything he has seen and read so far suggest sales are up for some Canadian brands.

“I think the companies that actually jump on this loud and strong will do better,” says McHugh. “But already some companies are starting to see an uptick in their sales because they are based here.”

He also warns shoppers to be sure of what they are buying. He points out some companies are “slapping” a Canadian flag on their product in hopes of catching Canadians looking to buy domestically.