Inflation, Geopolitics Strengthen Canadian Grocers Positions -- Market Talk

1217 ET - What's painful for consumers may prove supportive for Canadian grocers. RBC's Irene Nattel says Canadian grocers are poised to win in 2Q amid the "resurgence of geopolitical uncertainty and upside inflation risk, combined with long-term secular trends." She says that under these conditions, such as higher inflation accelerating "at or above 4% for the third consecutive quarter," grocery stocks should remain "stronger for longer" as investors rotate toward more defensive, consistent growing names. Loblaw remains the top pick for Nattel thanks to its disciplined operating model and financial framework underpinned by "expansion in Hard Discount, Pharmacy, and T&T, high-margin ancillary income streams, and ongoing return of capital to shareholders." (adriano.marchese@wsj.com)

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July 24, 2026 12:17 ET (16:17 GMT)