Canadians still prefer Loblaws when it comes to discounted groceries: report
Canadians are seeking out discounted groceries more often than not these days, and a new report found that shoppers’ preferred store for discounts is still Loblaws.
Despite the backlash the grocery giant continues to receive for its soaring prices amid record profits, a survey by the Agri-Food Analytics Lab at Dalhousie University found that Loblaws (and its sister stores No Frills, Real Canadian Superstore, Maxi, and Atlantic Superstore) is the go-to for 54% of Canadians when it comes to discounted food products.
Walmart is in second place, with 35.5% of Canadians shopping there for discounts, followed by Costco at 26.8%, Metro/Super C/Food Basics at 20.4%, and Giant Tiger at 15.1%.
Agri-Food Analytics Lab
These findings come a month after Loblaws scrapped its 50% discount on expiring items, which outraged Canadian shoppers.
The public outcry caused the grocery giant to reconsider this decision and reinstate the discount days later.
According to the report, this incident has opened up the conversation into in-store, expiring food discounts, and food-saving apps.
“As our study illuminates, the modern grocery landscape is marked by a robust appetite for discounts, shaping consumer behaviours and store preferences,” said Sylvain Charlebois, director of the Agri-Food Analytics Lab, in a statement.
“This underscores the importance for retailers to strategically prioritize discounting initiatives to remain competitive in an increasingly dynamic market.”
On the hunt for grocery discounts
The report found that during in-store grocery shopping, 59.2% of Canadians are consistently in search of discounted food, with 26.9% doing so often and 10.4% occasionally.
Forty-one percent of Canadians’ preferences favour marked-down expiring or clearance items, like those offering 30% or 50% discounts.
Loyalty programs follow that, preferred by 24.3% of shoppers, while only 15% opt for coupons, and 12.7% prefer special day sales.
Their reasons for buying these discounted products also vary.
“While 57.9% are inclined to buy products they are familiar with or frequently purchase, 57.2% are influenced by the significance of the discount,” reads the report.
“Additionally, factors such as the product’s packaging date, expiry dates, freshness, and quality are important to 47.5% of respondents, while the brand holds significance for 38.7%.”
The most purchased discounted products include fresh produce (59.9%), followed closely by meat products (59.7%), packaged and canned goods (57.7%), baked goods (48.6%), and dairy products (48.3%).
Would you buy expiring food if it’s cheaper?
Another question the survey sought to answer is Canadians’ perspectives on discounts for expiring groceries and how much the mark-down needs to be for them to consider buying.
According to the report, 47.3% of Canadians said that a 50% discount would be enough for them to buy expiring food, while 26.1% stated that a 30% discount would be enough.
Only 19.4% said a discount exceeding 50% would be necessary for them to consider purchasing expiring food items.
The backlash against Loblaws’ 50% discount flip-flop on expiring foods is definitely backed up by these statistics.
Food apps to the rescue
The Agri-Food Analytics Lab also looked into food-rescuing apps that offer shoppers opportunities to save money while combatting food waste.
It concluded that most respondents to the survey have yet to try apps like Flash Food, Food Hero or Too Good To Go.
“Among the surveyed individuals, 57.6% have never used a food-rescuing app … to purchase expiring or surplus food from local businesses or grocery stores,” reads the report.
However, among those who have taken advantage of the apps, an overwhelming 95.1% would recommend them to others.
Agri-Food Analytics Lab
Canadians say their main motivation for using these apps is to save money (73.2%), while 39.5% say it’s to reduce waste.
Agri-Food Analytics Lab
A majority of shoppers said a 50% discount would be enough for them to buy expiring food through these apps, while 22.1% stated that a 30% discount would be enough, and 20.4% suggested discounts exceeding 50%.
Agri-Food Analytics Lab
“As our research unveils, the burgeoning popularity of food-saving apps underscores a shifting consumer mindset towards sustainable and cost-effective grocery shopping practices,” said Janet Music, research manager of the Agri-Food Analytics Lab.
Due to these findings, the Agri-Food Analytics Lab has recommended that grocery stores like Loblaws take the following actions:
- Prioritize percentage discounts and loyalty rewards in promotional strategies to attract and retain customers.
- Enhance the visibility of promotions through various channels, including store flyers, mobile apps, and website alerts, to ensure maximum reach and impact.
- Forge stronger and more proactive partnerships with food savings apps to capitalize on the market of cost-conscious consumers and offer additional value to customers.
- Focus on offering competitive discounts, particularly on fresh produce and meats, as these are highly sought after when discounted.
- Maintain high standards of quality and freshness to complement discount strategies, recognizing that these factors significantly influence purchase decisions.
Follow Channels and Categories