Table of Contents
Overview
-
- What you need to know
- Definitions
Executive Summary
-
- The issues
- Mass merchandisers are making in-roads in the category
-
- Figure 1: Store types shopped (net any grocery item), May 2018
- Life stage impacts who and how consumers shop for groceries
-
- Figure 2: Grocery shopping responsibility, by age, May 2018
- Consumers need more information before they’ll shop (more) for groceries online
-
- Figure 3: Shopping for groceries online, 2018 vs 2015, May 2018/October 2014
- The opportunities
- Old habits die hard: dividing up categories may help adoption of online grocery shopping
-
- Figure 4: Concerned about the freshness of products purchased online, those who have not done so before but are interested vs overall, May 2018
- Parents are keen for more ready-prepared offerings, so make it more like takeout
-
- Figure 5: Grocery products bought (net any store), parents with under-18s at home vs overall, May 2018
- Increase engagement during off-peak times by appealing to older consumers
-
- Figure 6: Shops for groceries more than once per week, under-65s vs over-65s, May 2018
- What it means
The Market – What You Need to Know
-
- Tariffs will likely have an impact on consumer shopping behaviour
- An aging population means different shopping habits
- Consumers feel more financially healthy opening up leeway for small splurges
Market Factors
-
- Tariffs will likely have an impact on consumer shopping behaviour
- Consumers will likely see higher prices due to tariffs
- Grocery shopping is a high-engagement category
-
- Figure 7: Category engagement – all categories, January 2018
- Some Canadians are being more patriotic at the grocery store
-
- Figure 8: French’s Perfect Match, November 2016
- An aging population means changing grocery shopping habits
-
- Figure 9: Population aged 0-14 and over 65, 1995-2035*
- Improvement in perception of financial health suggests a little more room for small splurges
-
- Figure 10: Perception of financial health, January/February 2016-18
Key Players – What You Need to Know
-
- Loyalty programs live up to their namesake and keep consumers loyal
- Mass merchandisers are making gains in grocery
- Retailer reactions to Amazon will benefit consumers
What’s Working?
-
- Loyalty programs are keeping consumers loyal: spotlight on Loblaw
- Participation in loyalty programs run by LCL (Loblaw Companies Limited) is high
- Members have more options and benefits with PC Optimum
- Looking ahead, more benefits to come to those willing to pay a small fee
-
- Figure 11: Acquisition email, President’s Choice, June 2018
What’s Struggling?
-
- Mass merchandisers are making gains in grocery
-
- Figure 12: Buying fresh grocery items by store-type, May 2018
-
- Figure 13: Acquisition email, Walmart, July 2018
What’s Next?
-
- Tech integrations are starting to have a presence
- More self-checkout stations in future
- More retailers are investing in Scan-and-Go technology
- Amazon Go opens to the public
- Tech integrations, more to it than just benefiting customers
- Canadian retailers add convenience offerings to take on Amazon
- Loblaw expands home delivery and PC Express pickup points
- Metro updates its online grocery service
- The presence of meal kits is increasing and retailers are paying attention
The Consumer – What You Need to Know
-
- Virtually all Canadians shop for groceries
- The presence of mass merchandisers cannot be ignored
- Interest in buying groceries online increases, but barriers remain
Grocery Shopper Profile
-
- Virtually all shop for groceries and most do so at least once a week
-
- Figure 14: Grocery shopping responsibility, May 2018
-
- Figure 15: Grocery shopping frequency, May 2018
- Moms more likely to be the primary grocery shopper, though fathers see themselves as contributors
-
- Figure 16: Sole responsibility for grocery shopping, mothers vs fathers, May 2018
- Not all trips are created equal: parents are making multiple trips to the grocery store
-
- Figure 17: Shops more than once per week, parents with under-18s vs non-parents, May 2018
- Click-and-collect for ready or semi-prepared options will appeal
- Older consumers more likely to share the responsibility and are high frequency shoppers
-
- Figure 18: Responsibility for grocery shopping, by age, May 2018
-
- Figure 19: Shops for groceries more than once per week, by age, May 2018
- Showcasing high-quality products during off-peak times may yield gains
Store Types Shopped
-
- The grocery market is fragmented
-
- Figure 20: Store types shopped (net any grocery item), May 2018
- Grocery stores still own their lane, though mass merchandisers have an ‘in’ via household products
-
- Figure 21: Staple grocery items bought, by store type, May 2018
-
- Figure 22: Household products and BPC items, by store type, May 2018
- Mass merchandisers are winning over the under-45s
-
- Figure 23: Shopping at supermarkets vs mass merchandisers (net any grocery item), 18-44s vs over-45s, May 2018
- The draw is less through grocery staples, though convenience keeps them shopping
-
- Figure 24: Difference between likelihood to purchase products from supermarkets vs mass merchandisers, May 2018
- Messages focused on fresh and convenience will help
- Supermarkets own fresh, mass merchandisers own value – in their words
- Positioning convenience as a value offering will help differentiate supermarkets
Buying Groceries Online: Attitudes and Barriers
-
- Canadians are showing increased interest in buying groceries online
-
- Figure 25: Shopping for groceries online, 2018 vs 2015, May 2018/October 2014
- Parents are on board, but opportunity exists to encourage more activity
-
- Figure 26: Have bought groceries online and would do so again, parents with under-18s at home vs overall, May 2018
- Engagement can be deepened by incentivizing product re-ordering online
- Retailers need to address concerns about freshness and costs
-
- Figure 27: Barriers to order groceries online, those who have not done so before but are interested vs overall, May 2018
- A little more information may make a big difference
- Addressing concerns about freshness via social media
- Let them know that ordering groceries online isn’t so different from shopping online for other categories
- Breaking apart the ‘grocery’ categories may help adoption
- Shopping for groceries lacks the tactic experience – in their words
- Start by encouraging consumers to buy categories they are less engaged with
- Small perks may tip them into trying it
-
- Figure 28: Interest in seeing grocery stores offer customized promotions to their shopping habits, those who have not done so before but are interested vs overall, May 2018
- Emulating the ‘discovery’ process may also pique interests
- Food for thought: shopping in physical stores offers the joy of discovery
- The element of surprise/discovery may be lacking – In their words
Opportunities for Grocery Stores
-
- Women aged 45-64s are in a time of transition and are looking for samples of new products
-
- Figure 29: Interest in seeing ‘more samples of products I would not typically buy’, women 45-64 vs overall, May 2018
- Featuring products with simple and high quality ingredients will resonate
-
- Figure 30: Rude Health Organic Ultimate Almond Drink (Netherlands, October 2017)
- Parents are keen for more ready-prepared offerings
-
- Figure 31: Grocery products bought (net any store), parents with under-18s at home vs overall, May 2018
- Consider increasing convenience surrounding ready-prepared offerings
- In-store cafes are a key area of interest for 18-24-year-old women
-
- Figure 32: Interest in seeing more grocery stores include in-store cafés or restaurants, 18-24s vs overall, May 2018
- Showcasing speciality ready-made items to generate cravings amongst 18-24s
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Back to top