As retail shopping continues to evolve, the disruption of traditional retail business models is paving the way for warehouse club stores to thrive in Canada. Warehouse club shopping trips totalled more than 110 million in 2018, with the average household spend reaching $1,565.
As choice increases, loyalty has a tendency to decrease, with shoppers in Canada placing more emphasis on value. With online shopping and browsing gaining momentum, shoppers have access to more information, and Canadians continue to seek value.
While online has been growing as a channel in several developed markets in recent years, it’s broadening in scope, and is fast becoming a popular shopping destination for consumers around the world, particularly those looking to purchase premium products, as these platforms are able to attract shoppers and generate sales by providing exclusive product ranges and compelling deals.
In 2018, Canadian consumers made fewer trips to the grocery store (-2%) on average but spent more overall (+3%). While that is good news for retailers and manufacturers, not all provinces are created equal.
As companies look to break into new markets, they must understand that each market demands its own approach. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims.