Consumer Behaviour Trends: Where Are People Shopping?
It is a constant struggle when you operate in the consumer packaged goods arena. People’s preferences are constantly changing, and keeping up with consumer behaviour trends is often a full time job all on its own. One day they want sustainability, the next great value, and the next all-natural, organic foods. So, where are people shopping to meet these needs?
Wherever the best deal is to be found. While some shop for the experience – the larger aisles, the well-lit stores, etc., others are actively searching out the best deals. Discount big box stores are leading the pack here, as a Toronto Star article from back in May noted: “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 per cent in 2015, compared with two per cent sales growth among traditional grocery retailers.” Canadians are, no matter their economic circumstances, looking to cut their food spending, and often the big box discount retailers are the place to do that.
Growing interest in specialty food. According to research done on Canadian specialty food stores, “changes in consumer preferences, such as rapidly growing interest in all-natural or organic foods in place of processed alternatives,” have led to an increase for these often smaller/independent retailers. Such locations are part of a $2B industry and are giving regular supermarkets a challenge. You can check out the findings here: http://www.ibisworld.ca/industry/default.aspx?indid=1046.
People also seem to be turning to their computers to fill their fridge. While many have claimed that online grocery shopping is unlikely to take off in a big way in Canada, a recent Toronto Star article suggests otherwise. According to the article, “Fewer than one per cent of Canadians’ total food purchasing happens online, according to a January report from BMO Capital Markets analyst Peter Sklar. Meanwhile, Americans buy three per cent of their food online, while in the U.K. that number jumps to four per cent, according to his report.”
That being said, several chains are increasing their online offerings, and those not yet in the online world are making plans to join the revolution. Based on trends both at home and abroad it would be fair to assume that that 1% is going to increase in the future.
Check out the article in full here: https://www.thestar.com/business/2016/06/18/canadians-warm-to-online-grocery-shopping.html.
Of course, Canadians still, en masse, turn to the big box retailers for their food needs, while others remain loyal to those mom and pop independent grocers who’ve been a fixture in their lives for several years. Still, while it is impossible to nail down the consumer behaviour trends which dictate exactly where Canadians shop, taking note of the above trends may just give you a greater share of the market.
Want to take advantage of these consumer behaviour trends, or find out more? Contact Marketsupport today by calling 1-877-421-5081.
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