Retail Council of Canada Warns of Devastating Impact of Looming Canada Post Labour Disruption

Toronto, ON – May 20, 2025– Retail Council of Canada (RCC) is raising urgent concerns about the severe consequences a second Canada Post work stoppage in just six months could have on Canadian retailers and consumers alike.

“This kind of disruption could be disastrous,” said Diane J. Brisebois, Retail Council of Canada. “Retailers are already facing significant pressure due to ongoing global trade tensions. Another Canada Post shutdown would hit businesses hard, just as they are trying to recover from the last disruption and prepare for the critical summer and back-to-school retail seasons.”

Retailers of all sizes rely heavily on Canada Post. For small and independent retailers, particularly those in the e-commerce space, Canada Post is often the only affordable and reliable delivery option to reach customers across the country. With Canadians increasingly shopping online, the impact of a disruption would be swift and far-reaching. Alternative delivery providers are often not economical, and as the last disruption showed, they quickly reach capacity and cannot absorb the overflow.

Larger retailers also depend on Canada Post — especially for marketing and promotional materials. In the previous work stoppage, millions of dollars’ worth of printed flyers never reached consumers, dealing a significant blow to retailers’ sales and customer outreach. All this happened during the critical holiday shopping season.

Beyond business implications, RCC is emphasizing how a postal service disruption would deeply affect Canadians, especially those living in rural and northern communities where Canada Post is often the only link to essential goods and services.

“With 2.3 million Canadians employed in retail, the ripple effect of a Canada Post disruption goes well beyond delayed packages — it affects people’s livelihoods,” added Brisebois. “The health of the retail sector depends on predictable, reliable infrastructure, and Canada Post plays a vital role in that ecosystem.”

Retail Council of Canada is urging Canada Post and its labour representatives to work collaboratively and expediently to find a resolution that avoids further disruptions and ensures Canadians and businesses can count on a stable postal system. If they cannot, we urge the Federal Government to intervene immediately to resolve this issue once and for all.

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About Retail Council of Canada

Retail is Canada’s largest private-sector employer with over 2.3 million Canadians working in our industry. This sector is a major economic contributor, generating more than $93 billion annually in wages and employee benefits. In 2024, core retail sales (excluding vehicles and gasoline) exceeded $508 billion. Retail Council of Canada (RCC) members account for more than two-thirds of these core retail sales and 95 per cent of the grocery market. Our membership extends across the country, embracing over 54,000 storefronts in diverse formats such as department, grocery, specialty, discount, independent retailers, online merchants, and quick service restaurants. As the Voice of Retail™ in Canada, RCC, a not-for-profit, industry-funded association, proudly represents retail businesses of all sizes, from small independents to large national chains, in communities nationwide.  retailcouncil.org.

Contact
Santo Ligotti, VP Marketing & Membership
(416) 274-2956, sligotti@retailcouncil.org