Canadian Retailer - Spring 2015 - 32
What other trends are driving that home
meal replacement (HMR) demand?
Allison: 60 per cent of households are one or
two members. HMR is easy, as opposed to
buying all the ingredients and having food
waste. Millennials are also starting to push
the shopping cart, and a lot of them don't
cook from scratch. This is the technology
generation. They want everything now. For
them, "ding" means dinner is ready because
they're cooking in the microwave. The third
trend is urbanization. More Canadians are
living in the core of the city, and urban consumers eat out more than rural consumers.
How else does HMR offer
advantages to the store?
Allison: The grocer has all the
raw ingredients; their pantry
is the store. So this also gives
them the opportunity to use
produce that would go bad and
churn produce and meat faster.
The appearance of freshness
plays well for consumers.
Are grocers smart to also move
into non-traditional categories?
Brain: I wonder how many
more categories traditional
grocery retailers can introduce. The original reason was
to capture share of wallet. But
you get to the point where you
could become too big and off brand. If the
consumer is confused and can't find the milk
because they're walking through the electronic aisle, you're defeating the purpose.
Allison: Consumers will decide with their
wallets. For some, the one-stop shop is a key
motivator and will continue to expand offerings. However, with the growth of urbanization and the shift to smaller store formats in
the core of cities, retailers will need to focus
on their core competency out of necessity.
canadian retailer | SprinG 2015
consumers today, particularly Millennials, want
the option of organic and fair trade. nature's
emporium, the canadian organic and glutenfree trailblazer, boasts a flagship store that
features 10,000 square-feet of fresh, organic
produce, meats, bakery goods (gluten free), cheeses,
etc., 30,000 square-feet of organic and gluten-free
grocery, and 10,000 square-feet of supplements.
What kind of impact might e-commerce ultimately
have on this sector?
Allison: There's lots of noise, but online grocery sales is
under 2 per cent. It's still a niche play.
Brain: If you asked five years
ago would people be buying
eyeglasses online, the answer
would have been no. It will
be interesting to see if the
click-and-collect model will
take shape. I think grocery will
absolutely follow the trend of
other categories in defining
omni channels. You can go
in-store to make purchases,
or go online to have groceries delivered to your home or
to third-party locations like a
locker or a train station.
Hillier: Our research says that
60 per cent of e-commerce
consumers still buy from
brick and mortar retailers at
some point in their shopping
journey. Retailers that have a good brick and mortar
presence still have a role to play.
"The original reason [to move to non-traditional
items] was to capture share of wallet. But you get
to the point where you could become too big and
off brand. If the consumer is confused and can't
find the milk because they're walking through the
electronic aisle, you're defeating the purpose."
- RYAN BRAIN, Deloitte