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Canadian Grocers Hurting Costco And Walmart’s Growth
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Canadian Grocers Hurting Costco And Walmart’s Growth

Canadian grocers have mounted an improved defence against Costco and Walmart which were taking market share away from them for the past decade.

The price gap between the shopping formats have narrowed with the help of loyalty cards and discount retail store formats.  Loblaw has over 500 “No Frill” and other discount locations that have provided customers with a convenient choice for discount shopping.  When the price gap between retail formats narrows, the need to shop at several locations narrows as well.  In addition, buying in bulk and buying on price is being revolutionized by apps that tell consumers where the best prices are – the same app being used to provide retailers with quick pricing surveys of their competitors.

Loblaw is also investing in 30 new store builds and renovating more than 500 as it continues to adapt to the changing grocery consumer.  They also are rolling out more “click and collect” e-commerce services, improved health and wellness services, and the inclusion of fresh foods at some Shoppers Drug Mart locations.  In short, the competition never sleeps, and when you stop to admire your success – a competitor is benefiting.

 

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