Monthly Archives: May 2012

Today’s Changing Shopper in Canada

Tremendous opportunity in the changing face of today’s shopper.

With factors such as low economic growth forecasts, low population growth and high unemployment, more retailers and consumer companies are recognizing the tremendous opportunity that exists in the changing face of today’s shopper in Canada, the Ethnic Consumer.

Population growth in Canada will stem from visible minorities.

72 percent of Canada’s population growth will stem from visible minorities as reported by Alannah Viraten, Director of Consumer & Shopper Insights at Nielsen Canada, at the recent POPAI Canadian Shopper insight event held in Toronto. The changing face of the Canadian consumer is a result of immigration mainly from China, Latin America and South Asia.

Retailers strategize to capture a greater market share of the multi ethnic shopper.

Retailers, such as Sobeys Inc. are beginning to recognize this trend and are developing strategies to cater to the local community by providing specialized products, tailoring store layouts and in store displays to recognize religious and cultural celebrations. Fresh Co., Sobeys newest chain of grocery stores is aimed at capturing a greater market share of the multi ethnic shopper. Loblaw’s, which owns the No Frills discount chain and the ethnic food chain T & T, recognizes these as their strongest performing sectors of its business.

Ethnic retailers gobble up market share.

In the report The Ethnic Consumer in Canada prepared by Perry Caicco of CIBC World Markets, it is forecasted that over the next decade up to 70 percent or retail sales growth will likely come from visible minorities. Ethnic retailers are gobbling up market share particularly in grocery – taking in between 4-5 billion a year in food sales and seeing a rise in these sales between 10 to 15 percent a year.

The Ethnic Shopper Fast Facts

  • Tend to shop more frequently and buy smaller amounts.
  • Prefer familiar brands.
  • Frequent mainstream discount stores.
  • Ethnic households have a higher birth rate.
  • Have a lower income in general.
  • 70 percent of visible minorities were born outside of Canada.
  • More likely to make shopping a family affair.
  • Prefer brand name products.
  • Do read advertising flyers regularly.
  • A younger population with few seniors.
Want to read more?

Why are U.S. Retailers looking towards Canada? www.igd.com/index.asp?id=1&fid=3&sic

Canadian Food & Grocery Market Update – January 2011  www.scribd.com

76 Percent Purchase Decisions made in store. – www.popai.com

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