Top Canadian Grocers Downgraded as Scotiabank Flags Increased Competition

Canadian grocers could be facing tougher times, according to analysts at Scotiabank, who have dimmed their outlook for the sector in light of increasing competition.

Analysts led by John Zamparo downgraded Empire Co., Loblaw Cos. and Metro Inc. to sector perform from outperform, citing lower expected earnings growth for this year. Recent earnings also missed the mark on key metrics, potentially signaling that competition in the sector is squeezing results, they said.