Metro plans fewer banners in Canada

Supermarket chain Metro Inc. (not to be confused with the German retailer, Metro Group) plans to reduce the number of conventional offerings from five in hopes of reducing costs. More than 40% of its over 660 supermarkets and discount stores operate in Ontario under the banners A&P, Dominion, Loeb, Ultra Food & Drug, The Barn Markets and Food Basics.

"We feel we can improve our offering, we can invest in the stores and make it more interesting to consumers," said chief executive Pierre Lessard. It is seen as the key driver to preserving gross margins in the face of intense competition; but the Montreal-based company's net earnings increased by nearly 5% despite flat sales.

Additionally, starting in the fall, Metro plans to begin a two-year phase-in of its private label brands that are on store shelves in Quebec. The premium products will be labelled Irresistible while the regular items will go under the Selection name. The Food Basics discount stores will also have access to a limited number of other no-frills type private products.

The banner announcement, however, has been delayed while the company has been focuses on integrating its new IT software.

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