Table of Contents
Introduction
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- Methodology
- Abbreviations
Executive Summary
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- The market
- Population changes open new opportunities
- Slight increases in food costs are predicted
- The consumer
- Grocery shopping responsibility lies predominantly with women, though men are active participants in the category
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- Figure 1: Responsibility for grocery shopping, October 2014
- Grocery shopping tends to be a weekly activity
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- Figure 2: Frequency of grocery shopping, October 2014
- Supermarkets are the primary location where groceries are purchased, though Walmart and Costco have a strong presence
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- Figure 3: Grocery shopping location (any location), October 2014
- Value is top of mind for grocery shoppers
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- Figure 4: Grocery shopping habits, October 2014
- Adoption of online grocery shopping may still be in early stages for Canadian grocery shoppers
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- Figure 5: Grocery shopping online, October 2014
- Grocery shoppers enjoy the pursuit of a deal, though seek quality and desire health information
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- Figure 6: Summary of attitudes towards grocery retailing, October 2014
- What we think
Issues and Insights
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- Improving the grocery shopping experience
- The facts
- The implications
- Boosting emotional engagement with apps
- The facts
- The implications
- Baby steps may need to be taken for click-and-collect groceries
- The facts
- The implications
- Leveraging health as a way to introduce new food opportunities
- The facts
- The implications
Market Drivers
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- Key points
- Demographic overview
- Canadian population count
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- Figure 7: Share of population of Canada, by territory/province, 2014
- Canada’s population is ageing and will continue to do so in the coming years
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- Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Over half of Canadians are overweight or obese
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- Figure 9: Body mass index, self-reported rate of being overweight or obese among Canadian adults, by gender, 2009-13
- Economic overview
- Consumers’ economy to pick up, but risks remain
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- Figure 10: Household disposable income and savings rate in Canada, Q1 2008-Q1 2014
- Consumer confidence may waver with falling oil prices
- Key economic indicators suggest slight increases in food costs in the future, holding true for food sold from both stores and restaurants
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- Figure 11: Monthly movements in selected major components of the Canadian Consumer Price Index, seasonally adjusted, January 2010-July 2014
- Canada’s employment rates remain steady
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- Figure 12: Canada’s unemployment rate, by gender, January 2008-January 2014
Trend Application
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- Trend: Let’s Make a Deal
- Trend: Access All Areas
- Trend: Help Me Help Myself
Who’s Innovating?
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- Key points
- The rise of click-and-collect
- Loblaws
- Walmart
- Innovative customer rewards
- PC Plus
- Sobeys
- Thinking outside the box
- Loblaws
- Walmart
Grocery Retailer Overview
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- Grocery retailers
- Loblaw Companies Limited
- Empire Company Limited
- Metro
- Mass merchandisers
- Walmart
- Drug stores
- Shoppers Drug Mart
- Rexall Pharma Plus
- London Drugs
- Online-only grocery retailers
- Amazon
- Grocery Gateway
- Natural and organic food retailers
- Choices Market
- Whole Foods
Social Media – Grocery Retailing
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- Key findings
- Market overview
- Key social media metrics
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- Figure 13: Key social media metrics, February 2015
- Brand usage and awareness
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- Figure 14: Brand usage and awareness for selected grocery retailing brands, October 2014
- Interactions with grocery brands
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- Figure 15: interactions with selected grocery retailing brands, October 2014
- Social media activity and campaigns
- What we think
- Online conversations
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- Figure 16: Online conversations for selected grocery retailing brands, by day, February 18, 2014-February 18, 2015
- Where are people talking about grocery retailers?
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- Figure 17: Online conversations for selected grocery retailing brands, by page type, February 18, 2014-February 18, 2015
- What are people talking about?
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- Figure 18: Topics of conversation around selected grocery retailing brands, February 18, 2014-February 18, 2015
The Consumer – Grocery Shopper Profile
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- Key points
- Grocery shopping may be a shared activity but responsibility lies primarily with women
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- Figure 19: Responsibility for grocery shopping, October 2014
- Women and those from households with children are more likely to be the sole grocery shopper in the household
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- Figure 20: Responsibility for grocery shopping, by gender, October 2014
- Affluent and two-person households more likely to share the task
- Men have a presence in this market
- Four in 10 men see themselves as solely responsible for grocery shopping
- Men more likely to see themselves as sharing this responsibility as they age
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- Figure 21: Share responsibility for grocery shopping – males, by age, October 2014
The Consumer – Frequency of Grocery Shopping
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- Key points
- Grocery shopping tends to be a weekly activity
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- Figure 22: Frequency of grocery shopping, October 2014
- High-frequency grocery shoppers comprised of two different audiences: seniors and parents of teenagers
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- Figure 23: Frequency of grocery shopping, by age, October 2014
- Moderately frequent grocery shoppers more likely to be working full-time and parents of young children
- Under-25s make up the majority of light grocery shoppers
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- Figure 24: Light grocery shopping, by age, October 2014
The Consumer – Grocery Shopping Location
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- Key points
- Groceries are purchased primarily from supermarkets though Walmart and Costco have a strong presence
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- Figure 25: Grocery shopping location (any location), October 2014
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- Figure 26: Grocery shopping location (most often), October 2014
- Supermarkets are meeting customer needs on a number of levels
- Younger shoppers, parents and larger households are drawn to Walmart though only 18% shop there most often for groceries
- Walmart shoppers are value seekers
- Costco shoppers skew older, more affluent and suburban
- Niche grocery venues see limited grocery shopper patronage
The Consumer – Grocery Shopping Habits
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- Key points
- Canadian grocery shoppers are value-minded
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- Figure 27: Grocery shopping habits, October 2014
- Canadian grocery shoppers look for sales
- Weekly grocery shoppers consult flyers/circulars for sales
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- Figure 28: Looking at flyers/circulars (online or in-store) to learn about sales, by area, October 2014
- Interest in private-label/store brands is soft despite focus on value
- Coupons are used by a third of weekly grocery shoppers
- Though many make lists, most are on the lookout for sales in-store
- Many make lists and stick to it
- One in three shoppers feel they often spend more than they originally intended to
- Leveraging the ‘convenience’ factor, particularly for parents
- Opportunities exist to improve the grocery shopping experience
The Consumer – Grocery Shopping Online
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- Key points
- The majority of grocery shoppers have not bought groceries online
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- Figure 29: Grocery shopping online, October 2014
- There is interest in this service, particularly among under-45s, parents and the Asian community
- Leveraging the voice of those who have shopped online may help drive interest
The Consumer – Attitudes towards Grocery Retailing
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- Key points
- Summary of attitudes towards grocery retailing
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- Figure 30: Summary of attitudes towards grocery retailing, October 2014
- The pursuit of a deal is emotionally rewarding, with convenience an important factor
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- Figure 31: Select attitudes towards grocery retailing, October 2014
- Those with children in the household are interested in using their smartphones
- High-frequency shoppers are emotionally engaged with bargains though many require convenience
- Quality trumps price for most consumers
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- Figure 32: Select attitudes towards grocery retailing, October 2014
- Affluence and age influence importance of quality and preference for local foods
- Ethnic shoppers are interested in specialty foods and sampling
- Health information is of interest to grocery shoppers
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- Figure 33: Attitudes towards grocery retailing, October 2014
The Consumer – Grocery Retailing and Chinese Canadians
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- Key points
- Chinese Canadians are highly engaged, savvy grocery shoppers
- Chinese Canadian grocery shoppers more likely to supplement with other stores
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- Figure 34: Grocery shopping location (any location): Chinese Canadians against overall population, October 2014
- Chinese Canadians put an effort into finding savings
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- Figure 35: Grocery shopping habits, selected statements: Chinese Canadians against overall population, October 2014
- One in four have bought groceries online and more are interested in doing so
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- Figure 36: Grocery shopping online: Chinese Canadians against overall population, October 2014
- Leverage technology to provide value, convenience and information
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- Figure 37: Attitudes towards grocery retailing: Chinese Canadians against overall population, October 2014
The Consumer – Target Groups
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- Key points
- Four target groups
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- Figure 38: Target groups for grocery retailing, September 2014
- Unengaged (28%)
- The Avid Shopper (24%)
- Deal Seekers (23%)
- The Ethnic Shopper (25%)
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