Canadian Retailer - Spring 2017 - 33

Canadian grocery aisles are continuing to
invigorate and inspire a complex sector.
BY ROBERT PRICE

THESE are very interesting times in Canadian grocery. Grocers in every region across the country are actively pursuing
ways to diversify their businesses, streamline operations
and create greater efficiency, all with an eye on enhancing the shopping experience for their customers. In
short, Canadian grocers are refreshing the very idea of
the grocery store.
"Go back 15 years," says Ron Welke, Associate VicePresident of Food at Federated Co-operatives Limited
(FCL), a food wholesaler and retail co-operative based in
Western Canada, "and we could say the same thing."
Welke speaks on the phone from FCL's head office in Saskatoon. He knows a lot about food and grocery, and he knows
how he feels about his industry. The industry is exciting and
healthy "to a large degree." About the future, he's optimistic.
"The industry is competitive. We have to keep finding ways
to stay relevant with our customers," he says, and has been
saying for 15 years.
What's different now, however, is the range of " RETAILERS ARE FOCUSED
ON WHERE TECHNOLOGY
opportunities on offer to grocers, thanks to revoCAN HAVE A POSITIVE
lutionary technology, demanding customers, and
IMPACT ON THE CUSTOMER
a large, diversified market of products, players,
EXPERIENCE."
and services. As always, grocers often have to
suffer change before they can profit from it. But
- STEWART SAMUEL
IGD
that's what makes grocery interesting.
Market shifts

The entire retail industry has been going through more flux
and change over the course of the last five-plus years than ever
before. That's no overstatement. This is especially true in the
Canadian grocery sector.
But where general retailers feel the pressure of change,
grocers feel the crushing pressure of change. Fluctuations
in currency, slim margins on produce, and revitalization
costs are enough to flatten a flat-footed grocer.
And there are plenty of grocers to get flattened. The
Centre for the Study of Commercial Activity at Ryerson
University counted 78 unique grocery banners operating in Canada in 2016. Combined, these 78 banners
operate 3,990 stores. Factor in 90 Costco stores and 400
Walmart stores, and Canadian consumers had 4,480 bannered grocery stores to choose from.
And how could anybody exclude Costco and Walmart from
the Canadian grocery landscape? These general merchandise
retailers are now so competitive in grocery that by mid-2016
they accounted for 17 per cent of all food sales in Canada.
Walmart in particular is moving quickly. Facing pressure to
revamp its offerings and stay competitive, the multinational
opened a new test store in Ancaster, Ontario, near Hamilton.
Dubbed a "test lab," the store showcases Walmart's experi-

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THE FOOD & GROCERY ISSUE

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Table of Contents for the Digital Edition of Canadian Retailer - Spring 2017