The Retail Council of Canada (RCC) is raising alarms over the potential for a second Canada Post work stoppage in just six months — a move the association warns could be catastrophic for retailers and their customers across the country.
“This kind of disruption could be disastrous,” said Diane J. Brisebois, President and CEO of 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.”
The potential work stoppage comes at a delicate time for the Canadian retail sector, which is still dealing with the lingering impacts of the last postal disruption and contending with a shifting global economic landscape. Inflation, cross-border trade challenges, and supply chain instability continue to affect retailers’ bottom lines.
Canada Post: A Lifeline for Small Retailers
At the centre of the concern is Canada Post’s essential role in the day-to-day operations of both small and large retailers. For independent merchants, particularly those operating online, Canada Post is often the only cost-effective and reliable option for shipping products across the country.
“Retailers of all sizes rely heavily on Canada Post,” Brisebois explained. “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.”
Smaller merchants, many of which launched or expanded e-commerce operations in the wake of the pandemic, do not have access to the volume discounts and integrated logistics networks that benefit larger corporations. Without Canada Post, they face steep surcharges or may be cut off from national markets altogether.
“Alternative delivery providers are often not economical,” Brisebois noted, “and as the last disruption showed, they quickly reach capacity and cannot absorb the overflow.”
Larger Retailers Also at Risk
While independent businesses stand to suffer the most, large national retailers are not immune to the impact of postal labour unrest. In particular, the distribution of marketing materials such as flyers and promotional catalogues has proven vulnerable during postal disruptions.
“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,” Brisebois said. “All this happened during the critical holiday shopping season.”
Flyers remain a key promotional tool for Canadian retailers, particularly grocery chains and general merchandise stores, many of which still rely on physical mail to reach consumers — especially in rural and remote areas where digital access may be limited.
Rural Communities Would Feel the Sharpest Impact
Beyond the direct business implications, RCC emphasized the broader social consequences of another service halt, particularly for rural and northern communities where Canada Post remains a vital link to essential goods, services, and communications.
“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,” said Brisebois.
In many remote regions, Canada Post is the only delivery channel that reliably serves the area — including for items like prescription medications, health products, and government correspondence. Losing access even temporarily could create unnecessary hardship for vulnerable populations.
The Broader Economic Ripple Effect
With 2.3 million Canadians employed in the retail sector, any threat to operational continuity — such as a postal strike — has economic repercussions well beyond the storefront.
“The ripple effect of a Canada Post disruption goes well beyond delayed packages — it affects people’s livelihoods,” Brisebois warned. “The health of the retail sector depends on predictable, reliable infrastructure, and Canada Post plays a vital role in that ecosystem.”
RCC members collectively account for more than two-thirds of Canada’s core retail sales and 95 percent of the grocery market. These businesses operate over 54,000 storefronts, representing a vast and diverse cross-section of the economy. A disruption in mail delivery services could result in delayed orders, lost sales, and damaged consumer trust during a crucial seasonal window.
Call to Action: Collaboration or Intervention
As tensions rise, RCC is urging all parties — including Canada Post management and labour unions — to return to the bargaining table and find a resolution that ensures continuity of service. But the organization also signalled that, if necessary, government intervention should not be ruled out.
“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,” Brisebois said. “If they cannot, we urge the Federal Government to intervene immediately to resolve this issue once and for all.”
Previous strikes have often involved back-to-work legislation or mediated settlements — costly processes with significant political and economic implications. With consumer confidence already shaken and many retailers still recovering from pandemic-era losses, RCC says action is needed now to prevent further damage.
Retail’s Role in Canada’s Economic Engine
The stakes are high not only for the retail industry, but for the broader Canadian economy. According to RCC, retail is the country’s largest private-sector employer, generating over $93 billion annually in wages and employee benefits. In 2024, core retail sales — excluding vehicles and gasoline — exceeded $508 billion.
Retail Council of Canada, a not-for-profit and industry-funded organization, represents businesses of all sizes across every region. Its advocacy reflects the views of national chains and small independents alike, spanning grocery, department, specialty, discount, and online retailers.
As the industry braces for a summer marked by economic uncertainty and critical seasonal sales, RCC’s message is clear: the future of Canadian retail cannot afford another blow to its delivery infrastructure.
