Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- The economic impact of the pandemic will delay Gen Zs becoming the primary household shopper
- Seniors are in the spotlight now, and need to be in the future
- Impact of COVID-19 on the grocery shopping experience
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- Figure 1: Short, medium and longer-term impact of COVID-19 on consumer orientation towards the grocery shopping experience
- Challenges
- Consumer approach to grocery shopping has changed, and not for the better
- Grocery shopping is a much more plan-heavy activity now; grocers need to get in on the pre-purchase process
- Opportunities
- Reignite the joy of discovery by taking a cue from the beauty sector to fill in for missing tactile experiences
- Going online: seniors have arrived, and work needs to be done to keep them there
- Be a partner in addressing issues they care about
The Market – Key Takeaways
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- Worries about the virus remain high, continuing to impact behaviours
- The pandemic’s economic impact alters the passing of the ‘primary household shopper’ baton
- Seniors have entered the spotlight; keep the glow on them
Market Factors
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- Protective behaviours are prevalent now and will impact safety expectations for years to come
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- Figure 2: COVID-19 exposure and life disruption concerns, March 3, 2020-November 5, 2020
- Adulthood will look different for the next primary household shopper: Gen Zs
- One in 10 adults are adult Gen Zs
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- Figure 3: Canadian population, by age group, 2019
- The transition of Gen Zs becoming the next primary household shopper will be prolonged
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- Figure 4: Canadian unemployment rate (monthly), seasonally adjusted, February-October 2020
- Financial challenges now will alter what adulthood looks like in the years to come
- Keep the spotlight bright on seniors
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- Figure 5: Population aged 0-14 and over 65, 1995-2035*
Competitive Strategies
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- Meeting consumer needs through the lens of the Wellbeing Trend Driver
- What’s happening now? Keeping safe is the first priority
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- Figure 6: No Frills Instagram post, May 2020
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- Figure 7: A Cart Apart – A No Frills Track, May 2020
- What’s next? Protection of health and safety will be an expectation well into the future
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- Figure 8: Non-tech-related health and safety features desired after preventative measures lift, by age, June 2020
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- Figure 9: Summerhill Market Facebook post, November 2020
- Meeting consumer needs through the lens of the Technology Trend Driver
- What’s happening now? Consumers are eating up tech innovations that bring convenience and keep them safe
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- Figure 10: Walmart Canada Grocery Pickup – Triplets Commercial 2017, November 2019
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- Figure 11: Walmart Instagram post, May 2020
- What’s next? Consumers will want more innovations that bring ease and enhance safety
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- Figure 12: Tech-related health and safety features desired after preventative measures lift, by age, June 2020
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- Figure 13: PC Express – The Talk 30sec, May 2019
- Meeting consumer needs through the lens of the Surroundings Trend Driver
- What’s happening now? Consumers hold a deeper focus on supporting the community
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- Figure 14: Kraft Peanut butter Instagram post, May 2020
- What’s next? Consumers will want brands to help them address issues they care about
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- Figure 15: Kraft Heinz Canada Instagram post, October 2020
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- Figure 16: Sobeys Instagram post, January 2020
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- Figure 17: How to Flashfood LIKE A MOTHER, September 2019
- Figure 18: Real Canadian Superstore Instagram post, October 2019
- Meeting consumer needs through the lens of the Rights Trend Driver
- What’s happening now? Specific support of seniors shows a level of basic respect
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- Figure 19: Walmart Instagram post, May 2020
- What’s next? Continued support for seniors should be a consideration
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- Figure 20: Would like to see dedicated shopping hours for seniors after the COVID-19 preventative measures lift, by age, June 2020
The Consumer – Key Takeaways
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- Engagement with this category is near-universal; catering must be nuanced
- People aren’t buying groceries as often
- Consumers are going online, but still mostly reliant on in-store
- Right now, grocery shopping isn’t as enjoyable
Who is Shopping for Groceries?
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- Virtually all Canadians are grocery shoppers
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- Figure 21: Grocery shopping responsibility, June 2020
- Think Gen Zs aren’t important yet? Think again
- More Gen Zs are shopping for groceries than one might think
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- Figure 22: Grocery shopping responsibility of Gen Zs, June 2020
- The pandemic will play a role in the timing of Gen Zs becoming the primary household shopper
- The recipe for winning over Gen Zs is to build up food-related skills with fun and community aspects
- Consider partnering with heritage brands when launching content targeting Gen Z
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- Figure 23: Nespresso Facebook post, June 2020
- Perceived ownership of the task is at odds between men and women
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- Figure 24: Grocery shopping responsibility, women vs men, June 2020
- More normalization of men’s contributions to the household (including grocery shopping) is necessary
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- Figure 25: Dove Men+Care Global Channel on Instagram, August 2020
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- Figure 26: Dove Men+Care Global Channel on Instagram, September 2020
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- Figure 27: Little Cooks Co Instagram post, February 2020
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- Figure 28: Classic Oysters Rockefeller, November 2018
- Figure 29: Jumbleberry Croissant Strata, November 2018
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- Figure 30: Seafood Made Simple: Just cook the bag, September 2015
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- Figure 31: PC Chef Instagram post, October 2020
Grocery Shopping Frequency
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- The cadence in which people are shopping has changed significantly
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- Figure 32: Grocery shopping frequency, 2018 vs 2020, May 2018/June 2020
- Less frequent trips mean greater attention towards longer-lasting foods
- Interest in longer-lasting foods bodes well for online grocery shopping
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- Figure 33: ‘I plan to keep stocked up on groceries even after the COVID-19 preventative measures lift’ (% any agree) by those who have shopped for groceries online, June 2020
- Consider elevating the visibility of longer-lasting foods by pairing them with meaningful value propositions
- Messaging consideration: bring attention to the inherent cost savings to be had
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- Figure 34: Oxford Wild Blueberries – Little Ones & Better Price, Jan 2018
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- Figure 35: PC Financial | Cake Mix, May 2019
- Messaging consideration: focus on the time efficiencies gained by using such products
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- Figure 36: Kraft Mac & Cheese Instagram post, August 2020
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- Figure 37: Kraft Mac & Cheese For Breakfast, August 2020
- A strategy to encourage micro-trips is necessary
- Gains to be had by targeting Boomer men
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- Figure 38: Grocery shopping frequency, men 55+ vs overall, June 2020
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- Figure 39: ‘I find grocery shopping more stressful now than before the COVID-19 pandemic’ (% any agree), men 55+ vs overall, June 2020
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- Figure 40: Red Wine Chocolate Cake, September 2018
- Figure 41: Sobeys acquisition email, October 2018
Grocery Shopping Channels
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- Grocery shopping is now an omnichannel endeavour
- Adoption of online grocery shopping has grown considerably
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- Figure 42: Shopping for groceries online, 2018 vs 2020, May 2018/June 2020
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- Figure 43: Frequency of shopping online for groceries compared to a year ago, June 2020
- Seven in 10 Canadians are multi-channel grocery shoppers
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- Figure 44: Channels used for grocery shopping in the past month, June 2020
- Surprise! Even seniors are on board as multi-channel shoppers
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- Figure 45: Channels used for grocery shopping in the past month, 65+ vs overall, June 2020
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- Figure 46: Shopping online more for groceries compared to a year ago and likelihood to continue to shopping online in the long term, 65+ vs overall June 2020
- Consider featuring products with smaller packaging and serving sizes
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- Figure 47: Bodega Santa Julia Facebook post, July 2020
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- Figure 48: New Planters Pop & Pour, June 2020
- Consider bringing more experiential elements to life
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- Figure 49: Gardening with Edibles Facebook Live | Episode 4, November 2020
- Figure 50: National Parks Board Instagram post, September 2020
The Current Grocery Shopping Experience
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- Don’t doddle, the grocery shopping experience has changed
- The evolution of the consumer mindset towards grocery shopping
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- Figure 51: Short, medium and longer-term impact of COVID-19 on consumer orientation towards the grocery shopping experience
- Quick actions from the grocery retailing sector have been noticed by consumers
- Continued uncertainty drives protective behaviours that hamper discovery
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- Figure 52: Current perception and approach to grocery shopping (% any agree), June 2020
- Reactivating the act of discovery
- Consider ways to filling in the gaps from the now lacking tactile experiences
- Additional online resources can be a beautiful thing – Following the footsteps of beauty retailing
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- Figure 53: Grazia UK Instagram post, September 2020
- Be proactive about helping consumers improve shopping efficiency
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- Figure 54: Tech-related health and safety features desired after preventative measures lift, by age, June 2020
- Consider taking a cue from communication patterns of younger consumers to provide support
- Getting better integrated with the planning process has never been more important
- Focusing on more interactive resources will be more effective than continuing to tap into static ones
- Consider partnerships with more commonly used resources for ideas
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- Figure 55: Allrecipes Instagram post, November 2020
- Partnerships with tech-enhanced time-saving kitchen appliances will appeal to moms
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- Figure 56: Current perception and approach to grocery shopping (% any agree), by gender, June 2020
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- Figure 57: Instant Pot Pho Chicken Noodle Soup, March 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations
- Terms
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