The Discount Disruptors to Watch Through 2020 Robin Sherk www.canadiangrocer.com
The ongoing growth of discount
continue to look for value through
resonates strongly with Canadians
retailers in Canada isn’t intuitive.
store choice. Between 2012 and
and already has incredible reach.
Canadians reported record consumer
2019, the sales growth among chain
Kantar’s 2019 Canadian Shopper-
confidence last year, reaching a
discount retailers (including clubs,
Spective data finds that roughly 40%
10-year high by August. This also
dollar stores, hypermarkets and soft
of household shoppers shop at
translated to strong spending, as
discounters such as No Frills)
Costco for groceries and consuma-
seasonally adjusted retail sales grew
increased more than double
bles. Over the next five years, the
nearly 7%.
Canada’s overall retail chain sales.
retailer is set to open more clubs in
Over the next five years, Kantar
Canada than they did in the past five.
While we’re ready to spend, we’re
forecast’s these discount channels
This is to help them go after distinct
also frugal. Consumers continue to
will continue to growth at roughly 1.5
audiences (small businesses) and
demand value for money, as Kantar’s
times the rate of overall chain retail.
because management realized they
Global Monitor data illustrates.
can put clubs closer together without
Despite shoppers’ elevated
Discount players are a key growth
confidence, more Canadians agreed
driver in the market, second only to
in 2019 that they always look for
e-commerce, and the continued
The other is Dollarama. As the
sales compared to attitudes four
growth in this space will be led by two
retailer successfully pivoted into an
years earlier (85% vs. 82%).
key players.
everyday consumables destination,
On top of looking for deals, we also
One is Costco, a retailer that
cannibalizing sales very much.
its trip frequency and average basket
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MBE BUSINESS MAGAZINE FEBRUARY / MARCH 2020
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