Canada becoming a nation of bargain hunters

The grocery market in Canada has changed a lot. Grocery shoppers have evolved into dedicated bargain hunters, as revealed by a comprehensive survey conducted by Dalhousie University and Caddle. This survey delves into Canadian grocery shopping habits, highlighting a pronounced shift toward discount-driven consumerism, accentuated using technology to secure savings.

The findings provide nuanced insights into the changing landscape of grocery shopping, marked by a 32 per cent increase in shopping frequency since 2018, a strong inclination towards discounts, and the strategic use of food-saving apps. The average Canadian now visits the grocery store 7.20 times a month, up from 5.43 in 2018, signifying a notable change in shopping behaviour.

In the face of economic uncertainties, 62.2 per cent of consumers are willing to switch their primary grocery store for better deals, with 29.8 per cent choosing stores based solely on discount offerings. This discernment extends to expiring products, where a 50 per cent discount would entice 47.3 per cent of shoppers, showcasing a strong preference for savings.

The Loblaw 50 per cent discount flip-flop earlier this year on expiring foods raised concerns for many. Discounts on expiring or clearance items captivate consumers, with 59.2 per cent actively seeking such deals. The survey reveals that 57.9 per cent of purchases are influenced by familiarity with the product, while 57.2 per cent are swayed by the magnitude of the discount. Flyers, mobile apps and in-store signage play pivotal roles in alerting consumers to these discounts, with fresh produce and meat products topping the list of most-purchased discounted items. Consumers expect to be incentivized when buying expiring food at the grocery store, with 50 per cent being the preferred benchmark for interest.

The survey also sheds light on the growing use of food-saving apps, such as Flashfood, Food Hero, and Too Good To Go. Despite a 57.6 per cent non-use rate, these apps have garnered overwhelming approval from current users, with 95.1 per cent recommending them. They cater to the desire to save money, with 73.2 per cent citing it as a primary motivation.

Among app users, preferences for discounted items diverge from in-store choices, favouring baked goods, fresh produce, meat and readyto-eat items, indicating a distinct market for app-based food rescuing.

Interestingly, Canadians view Loblaw, Walmart, Costco, Metro, and Giant Tiger as grocers offering substantial discounts, in that order. Surprisingly, Sobeys, the second-largest grocer, did not make the top five in the survey.

Given these findings, grocery retailers need to adapt by emphasizing percentage discounts and loyalty rewards, enhancing promotion visibility through varied channels, and forging proactive partnerships with food-saving apps. Such strategies aim to align with consumer preferences for savings and sustainability, potentially boosting customer loyalty and market share in a competitive industry.