With the rapid consolidation of the big grocery players, in the latest CIBC World Markets report states that independent grocers (not franchised/controlled banners) are being “re-invigorated.”
Perry Caicco of CIBC World Markets writes that along with ethnic operators, “rising fresh-focused concepts (Farm Boy, Quality Foods, Colemans, Longo’s, etc.) … and specialty operators have been driven by consumers’ needs for better, healthier, more origin-focused offerings…”
While independents only represent 15% of the market, the report says that over five or 10 years, “they could begin to take serious market share.”
The report also outlines these four big shifts taking place in the marketplace:
1. From Centre-Store to Fresh.Traffic is configured to ensure customers spend time and money on fresh products before even finding the shrinking and muted grocery departments.
2. From Discount to Conventional. Conventional stores, which had relied on great locations and promotional programs to stay relevant, have begun heavily renovating
3. From the West to Ontario.The weak oil price is causing job losses and consumer fear in Alberta, while the low CAD has driven Ontario’s economy.
4. From Large stores to Smaller Stores. New stores tend to be ―mid-sized if they are suburban stores, or very small urban units.
Read the full report here.
© 2024 Canadian Federation of Independent Grocers
