Canadians are always looking for a deal, regardless of their economic circumstances.
For example, 35% of Albertans say they are worse off financially than they were a year ago, according to Nielsen’s April 2016 study, while 75% were actively trying to spend less on their grocery bills.
As such, the market share of discount grocers such as No Frills grew 7% in the Prairies in 2015 to 31.4% of the grocery market, stronger than in the rest of the country. The discount grocery channel in Canada grew 4% in 2015, compared with zero market share growth at conventional full-line grocery stores.
The study also says, among Albertans, 64% said they would switch stores in order to save money on food, and 87% are engaging in what one expert refers to as "pantry loading" — stocking up on items such as tomato sauce and coffee when they go on sale.
Dollar stores and warehouse clubs such as Costco also saw food sales soar in Canada last year, with each retail category growing their food sales by 10% in 2015, compared with 2% sales growth among traditional grocery retailers.
While Costco and Dollarama may have very different customer bases, an unquenchable thirst for savings is a constant among Canadians. What typically differentiates warehouse club food shoppers from dollar store food shoppers is average household income.
Today, the study says, 36% of all grocery items are sold on a discount price promotion, a figure that has been on the rise since 2010, when the figure was 32%. Prior to the recession, the figure was 27%.
