Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 12

E-COMMERCE EVOLUTION

only 17 per cent of shoppers currently buy their
groceries online but go to a physical store more
than six times a month. In 2016, Mintel found
that 88 per cent of Canadians had never tried
buying online, while 68 per cent said they had
no interest. Currently, just 1 per cent of Canada's
grocery sales occur online. In the rest of the
world, it's 5-10 per cent. However, this issue isn't
unique to the grocery sector; within Canada, 90
per cent of all retail sales still take
place in-store. Mintel's research
"There are a
paints a slightly different picture: in
lot of physical
2015, only 12 per cent of Canadians
had ever bought groceries online.
senses that
By 2018, it was 24 per cent. Some
are missing
growth is occurring, Wong-Li says,
but compared to other markets, it's
when we shop
still relatively minimal.
online. And
"If we want to pull back and look
there's also
at Canadian grocery consumers in
context, then we have to look at the
an emotional
adoption of online shopping more
attachment
generally," she explains. "Canadian
that's missing." adoption of online shopping lags
pretty significantly against the US.
CAROL WONG-LI
So, if you look at the proportion of
Mintel
consumers shopping monthly-
which we did-we saw a significant
increase between 2015-2018. But, in Canada,
we didn't see anywhere near the same amount
of growth as was seen in the US."
Part of that, she notes, is that concerns about
freshness and cost are top-of-mind for Canadian
consumers-freshness being the most important purchase driver for millennials.
"People are concerned that what they're ordering online might not be as fresh," Wong-Li
says. "How we typically determine freshness is
very tactile; we touch it, we smell it. There are a lot
of physical senses that are missing when we shop
online. And there's also an emotional attachment
that's missing. In the survey process, we realized
that there's a process of discovery that's missing-whether you're browsing the aisles for new
products, or just to compare prices."
"You're letting someone pick your tomatoes or your lettuce," Lee agrees. "And at the
moment, it's the consumer's perception that
they can find fresh better than anyone else.
Although that does seem to be changing."
Geography and profitability are also hindering
the proliferation of omnichannel grocery retail;
in a country as spread out as Canada, home delivery has yet to prove profitable (although some,

12 |

CANADIAN RETAILER

| FOOD & GROCERY

like Loblaw's, have been running click-andcollect models since 2014), and a concentration
of key players means that only a select few have
the means to pioneer a new approach.
"Here, we have the three big brands," WongLi explains. "There's a certain amount of comfort and loyalty to the big brands. But in China,
and the US, the market was already really
fragmented before, so it didn't inspire the same
kind of dedication, loyalty, or shopping habits.
That, in itself, was a factor for Canadians."
"In Canada, it's different from the US, in that
we don't have a lot of key players," Lee adds. "You
can count on one hand the number of grocery
retailers who are robust enough to compete in
eCommerce. That's the environment right now.
Ecommerce is expensive. It's not necessarily a
profitable channel. And although omnichannel
customers buy more online, it's the profitability
of shipping direct-to-home that a limited number
of retailers are trying to tackle. When you compare us to the US or the UK, we're not there yet.
The UK has density, and the US has scale. Here
in Canada, we don't really have either. Because
there are only four major cities-at best."

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Canadian Retailer Magazine - The Food & Grocery Issue 2019

Table of Contents for the Digital Edition of Canadian Retailer Magazine - The Food & Grocery Issue 2019

Contents
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 1
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 2
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - Contents
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 4
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 5
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 6
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 7
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 8
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 9
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 10
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 11
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 12
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 13
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 14
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 15
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 16
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 17
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 18
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 19
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 20
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 21
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 22
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 23
Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 24
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Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 26
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Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 28
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Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 31
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Canadian Retailer Magazine - The Food & Grocery Issue 2019 - 58
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_supplychain19
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_digitalretail19
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_sustainability19
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_foodandgrocery19
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_retailcommerce
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_technology
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_supplychain
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_lossprevention
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_bricksandmortar
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_foodandgrocery
https://www.nxtbook.com/nxtbooks/rcc/canadianretailer_marketing
https://www.nxtbookmedia.com