03:12 PM EDT, 05/01/2025 (MT Newswires) -- Canadian grocers Loblaw ( LBLCF ), Empire and Metro intend to accelerate/grow square footage, writes National Bank.

Capacity growth will be delivered against a backdrop of macroeconomic uncertainty, slowing population growth and higher e-commerce penetration. For a low-growth, low-margin industry, some may ask if the backdrop will be too challenging to accommodate.

The bank's analysis suggests that the current challenges are "unhelpful but manageable." Analyst Vishal Shreedhar notes that the Canadian grocers on average, have mostly delivered EPS growth through a variety of backdrops, including negative economic growth, low/high inflation, increasing competition, a pandemic and rapid technological change.

National Bank's preferred grocer remains Loblaw ( LBLCF ).

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