If you’re looking for reliable ways to grow your portfolio, Canadian retail stocks can be a good place to start. The sector has something for every type of investor, from steady food and drug retailers that deliver consistent growth to apparel brands trying to reignite momentum through creative campaigns. With interest rates easing and consumer confidence gradually improving, the outlook for retailers is starting to brighten.
In this article, I’ll talk about two of the best Canadian retail stocks that could be smart additions for long-term investors right now.
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Metro stock
One of the most dependable choices in Canadian retail right now is Metro (TSX: MRU). Based in Montréal, it runs a wide network of food and pharmacy stores across Québec and Ontario. The company has a market cap of about $21.6 billion, as MRU stock has risen 18% over the last year to currently trade at $99.78 per share. Investors also get a quarterly dividend, which currently represents a 1.5% annualized yield.
Metro’s defensive business model helped it post consistent performance, even when consumer spending is under pressure. The company’s recent financial results highlight this strength. In the third quarter of its fiscal 2025 (ended in June), its sales rose 3.3% YoY (year-over-year) to $6.9 billion, with its food same-store sales growing by 1.9% and pharmacy sales rising 5.5%.
During the quarter, Metro’s online grocery sales increased 14.4% YoY as its digital presence continued to expand. The company’s cost control, solid performance across banners, and efficiency gains at its distribution centres helped it post an 8.8% YoY increase in its adjusted net profit to $331.8 million.
To boost its long-term growth prospects, Metro is investing heavily in supply chain upgrades and store expansion. Meanwhile, it also continues to return cash to shareholders, with a strong buyback program and consistent dividends.
Canada Goose stock
To balance the list, let’s look at Canada Goose (TSX: GOOS), a brand focused on high-performance fashion. Headquartered in Toronto, it mainly designs and sells luxury outerwear, apparel, footwear, and accessories. The company is currently valued at about $1.6 billion, with its shares trading around $16.05 apiece after climbing by 13% so far in 2025. Unlike Metro, Canada Goose does not pay a dividend, reflecting its focus on reinvesting in growth.
In the latest quarter (ended in June), Canada Goose’s revenue jumped 22.4% YoY to $107.8 million. Similarly, the company’s gross profit surged by nearly 26% from a year ago to $66.2 million, reflecting strong performance from its European knitwear facility. However, high marketing expenses, expansion costs, and a one-time arbitration settlement pushed the Canadian retailer into a quarterly operating loss of $158.7 million.
Despite near-term losses, Canada Goose is continuing to focus on long-term growth as it recently launched new seasonal collections under its Snow Goose line and refreshed store designs in global markets, including Amsterdam.
Moreover, the company is expanding into knitwear and footwear to reduce reliance on winter outerwear. These moves aim to strengthen the brand, diversify products, and create a platform for future growth.
Foolish takeaway
Metro provides investors with consistency, dividends, and reliable growth, while Canada Goose offers a turnaround story built on brand strength and expansion. Together, they highlight two very different sides of Canadian retail.
While one is defensive and consistent, the other is riskier but has the potential for solid upside if its strategy works. For investors seeking balance in the retail space, both of these stocks could be worth considering right now.
