Eric La Flèche, shown at the company's annual general meeting in January, will step down as Metro's CEO in September.Andrej Ivanov/The Globe and Mail
Metro Inc. MRU-T said chief executive Eric La Flèche will retire at the end of September after more than 18 years at the helm of the grocery retailer, handing the top executive role to current chief operating officer Marc Giroux.
Mr. La Flèche will stay on as chair of the board to support a smooth and orderly transition, Metro said in a news release Tuesday. Current chair Pierre Boivin will be named vice-chair and lead director, the company said.
The leadership changes are the culmination of a multiyear succession planning process, reflecting what Metro said was its commitment to strong governance and long-term value creation. The changes will take effect Sept. 27, the last day of the company’s current fiscal year.
“Marc Giroux is a proven leader with deep knowledge of Metro’s operations, culture and strategic priorities as well as a clear vision for the future,” the company said in the release. “His appointment underscores the strength of Metro’s internal talent pipeline.”
The changeover comes at a challenging time for Metro and other grocery industry players. Higher fuel prices resulting from geopolitical conflict are bleeding into food production and transportation costs while Canadian shoppers gravitate toward discount stores in increasing numbers.
“Mr. Giroux has generally been regarded by the investment community as the natural successor to Mr. La Flèche,” Bank of Montreal analyst Étienne Ricard said in a note. “We expect a smooth transition and continuity of strategy,” he said, noting the chief operating officer has been in his current role for four years and at Metro since 2009.
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The average tenure of CEOs with Canadian companies in the S&P/TSX 60 has remained steady since 2021 at about seven years, according to a 2024 study by compensation consultancy Southlea Group. Of the CEOs who departed because of retirement, the average tenure is much higher at 14.5 years, Southlea found.
Over his nearly two decades as CEO, Mr. La Flèche stickhandled Metro’s acquisition of the Jean Coutu pharmacy chain as well as the purchase of Mediterranean grocer Adonis. He also led a warehouse and distribution centre automation effort and steered the company through several inflation cycles, including the sudden price acceleration in Canada that peaked at 8.1 per cent during the COVID-19 pandemic in June, 2022.
Today, inflation has normalized from those levels. But there are echoes of those supply-side shocks.
Surging fuel prices in the wake of the United States and Israel’s war with Iran have affected global supply chains, adding to production and transportation costs. Grocers are also affected, as they truck food and other products from their distribution centres to stores. That will in turn put pressure on prices.
Canadians are reacting to higher gasoline prices and other inflationary pressures by trying to cut back on their expenses. People are shopping more frequently at discount stores, prompting grocers to open more such locations as they compete for price-sensitive customers.
Metro is based in Montreal and operates in Ontario and Quebec. It reported a profit last year of $1.1-billion, or $4.63 per share, on sales of $22-billion.
The company has about 1,000 food stores under several banners, including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson. It also has about 640 pharmacies under the banners Jean Coutu, Brunet, Metro Pharmacy and Food Basics.