Published Mar 03, 2023 • Last updated 3 hours ago • 3 minute read
Sign up to receive daily headline news from the Windsor Star, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Quebec is even worse as shoppers can find Metro’s Super C or Maxi which is owned and operated by Loblaw. Sobeys doesn’t even operate a discount chain in Quebec. All banners and stores are connected to just a handful of grocers controlling the Canadian market.
Now Walmart is doing its own thing with price locks and Loblaw just ended its 14-week price freeze which really failed to show beyond a reasonable doubt that consumers were indeed saving money.
Rebates are just not as overly aggressive as what you would see in European-based discount stores. Every now and then some approaching threat will shake our industry’s giants and they try to fight for market share. As soon as clouds on the horizon disappear, some sort of truce overwhelms the market.
This is what happened with Target’s arrival and quick withdrawal in 2015 and with Amazon Fresh a few years ago when rumours were swirling they would attempt to enter the Canadian market.
For years, we have seen reports suggesting both Lidl and Aldi would enter the Canadian market. They both still have not. In fact, Lidl, a German international discount retailer chain, opened its first store in the United States in 2017 and is now operating almost 200 stores.
Unlike traditional grocery stores, both Lidl and Aldi operate on a restricted selection strategy, offering only a curated selection of private label products as well as a smaller range of national brands.
Lidl may have more branded products, depending on location. This leads to lower overhead costs and allows stores to sell products at lower prices compared to competitors.
Moreover, these discount grocers implement cost-saving measures such as a bring-your-own-bag policy, minimalistic store design and an efficient checkout process. In fact, in Europe where Aldi and Lidl originate from, clerks typically sit down while working at these discount grocery stores since the bagging work is done by customers themselves. That way, rules are implicitly clear for patrons as you walk towards cashiers.
In recent years, non-traditional grocers like Costco, Dollarama, Giant Tiger and Walmart have slowly shifted and tried to fill the discounting void. Costco though stands out. Only 15 years ago, Costco was a mediocre food retailer, at best.
Today, they process many of their fresh products onsite while the quality and freshness rarely disappoint. Deals are impressive, but shoppers need both a car and space at home. And many Canadians are deprived of either.
Grocers, coupled with the complacency of our regulars, have become too comfortable.
One can only hope Aldi, Lidl or another non-Canadian discount grocer finds inspiration to join the market in this country. Canadians are calling you.