Healthy gains: Increased sales of high-end food products will stimulate revenue growth

The Supermarkets and Grocery Stores industry in Canada has experienced modest growth over the past five years. During this period, stagnant levels of consumer confidence and limited growth in per capita disposable income encouraged many consumers to purchase groceries from more affordable retailers, such as supercentres and discount stores. Other consumers looked for cost savings at grocery stores, stocking up on promotional items or trading down to private label brands. In addition, in response to increasing purchase costs and intensifying competition from discount retailers, the industry's leading grocery store chains have acquired smaller competitors in recent years to expand their market share and lower operating costs through economies of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry’s leading grocery store chains have acquired smaller competitors to expand their market share
  • Many supermarkets have been forced to engage in price-based competition
  • Supermarkets and grocery stores will increase their stock of ethnic foods
  • Industry Report - Industry Investment Chapter

    The Supermarkets and Grocery Stores industry in Canada exhibits a low level of capital intensity. In 2018, IBISWorld estimates that for every $1.00 spent on labour, industry operators will spend $0.09 on capital investments, remaining unchanged from 2013. Capital expenditure for the industry includes the purchase of store assets such as cash registers and shelving.As with most retailers, supermarket operators rely heavily on their workforces for day-to-day operations. Supermarkets depend on manual labour to stock shelves, organize inventory and provide customer service. The level of labour expenditure in this industry is influenced by the number of people employed, their wage rates and operating hours. Emp...purchase to read more.

    Additional Insights for the Supermarkets & Grocery Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets & Grocery Stores Industry are

  • Proximity to key markets
  • Level of competition in the market
  • Inventory management
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer price index for food in the Supermarkets & Grocery Stores industry impact industry performance..

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    What's in this report

    What is the Supermarkets & Grocery Stores Industry?

    The Supermarkets and Grocery Stores industry comprises the largest food retail channel in Canada. These establishments retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. This industry excludes convenience stores, warehouse clubs and supercentres.

    Industry Products
  • Dairy products and eggs
  • Fish, seafood and meat products
  • Cereal grains and cereal products
  • Bakery products
  • Vegetables and vegetable preparations
  • Fruit, fruit preparations and nuts
  • Other foods and nonalcoholic beverages
  • Nonfood items
  • Industry Activities
  • Retailing a general line of food
  • Retailing health and beauty products
  • Retailing alcoholic and nonalcoholic beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer price index for food
  • External competition for the Supermarkets and Grocery Stores industry
  • Population

  • Current Performance
  • Competition and consolidation
  • Private label brands
  • Fresh foods and fresh format
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium goods on the rise
  • Supermarkets focus on customer loyalty
  • Table: Supermarkets & Grocery Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets & Grocery Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Beef & Pork Wholesaling in Canada
  • Confectionery Wholesaling in Canada
  • Dairy Wholesaling in Canada
  • Fish & Seafood Wholesaling in Canada
  • Frozen Food Wholesaling in Canada
  • Fruit & Vegetable Wholesaling in Canada
  • Grocery Wholesaling in Canada
  • Juice Production in Canada

  • Products & Services
  • Other foods and nonalcoholic beverages
  • Fish, seafood and meat products
  • Dairy products and eggs
  • Nonfood items
  • Fruit, fruit preparations and nuts
  • Vegetables and vegetable preparations
  • Bakery products
  • Cereal grains and cereal products
  • Chart: Supermarkets & Grocery Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Supermarkets & Grocery Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets & Grocery Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets & Grocery Stores Industry

  • Industry Globalization
    Loblaw Companies Limited, Sobeys Inc., Metro Inc.,
  • Table: Loblaw Companies Limited - financial performance
  • Table: Sobeys Inc. - financial performance
  • Table: Metro Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets & Grocery Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Supermarkets & Grocery Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Electronic Commerce
  • An industry where the buying and selling of products and services occur over electronic systems such as the internet.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • Point Of Sale (Pos) System
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Supermarkets & Grocery Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets & Grocery Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets & Grocery Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets & Grocery Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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