The Upcoming Holiday Season Means Busy Grocery Stores, but are Retailers Stocking the Kind of Foods that Reflect the Makeup of Modern Canada?

- LoyaltyOne research shows the majority of visible-minority Canadians are unhappy with ethnic food selection at big-box retailers -

TORONTO, Dec. 8, 2014 /CNW/ - According to the results of a study undertaken by LoyaltyOne – a  leading provider of loyalty and marketing solutions derived from transaction-rich data, and operator of the AIR MILES Reward Program - Canadian consumers, regardless of ethnicity, are looking for a greater selection in ethnic food and ingredients. With the holiday season fast approaching, big box retailers and grocery stores are significantly busier than usual with shoppers from many backgrounds and cultures preparing to get together and share family meals, however the survey revealed that the majority of visible-minority shoppers in Canada (63%) feel that their big-box grocery store does not stock a sufficient selection of ethnic food. 

With Statistics Canada reporting that visible minorities will comprise of over one-third of the population by 2031, the findings of this consumer survey illustrate that this shortfall represents a huge opportunity for retailers, with nearly nine-out-of-10 (86%) of visible minority consumers indicating that ethnic grocery selection is an important choice in selecting where they decide to shop.

In a clear indication that ethic consumers' food requirements are not being currently fulfilled, over two-thirds of visible minority shoppers in Canada are visiting three or more shops to fulfil their food needs, with 18% visiting five or more.

"It's clear that ethnic food selection among large Canadian retailers has significantly improved over the last five to 10 years.  However, as the results of our survey demonstrate, retail grocers still have a long way to go and, consequently, a significant opportunity to capture market share in this burgeoning sector," commented Jeff Berry, Senior Director of Research and Development at LoyaltyOne.

Further key findings from the research are as follows:

• Independent grocers outperform big box grocery stores in terms of customer satisfaction amongst visible-minority communities regarding ethnic food selection
  • 69% of visible-minority Canadians state they are satisfied with independent retailers compared to only 54% for large grocery chains. 
  • In addition, visible-minority Canadians were also more likely than non-ethnic consumers to use independent grocers and markets to purchase ethnic foods with 39% doing so regularly compared to less than a quarter of non-ethnic shoppers.
• There is an opportunity for retailers to grow market share and basket size amongst both visible minority Canadians and non-ethnic shoppers. 
  • Alongside 81% of visible-minority shoppers who stated that they would cook more ethnic cuisine if the ingredients were more readily available, over two-thirds of non visible-minority shoppers also made the same declaration.
• As the online grocery market continues to grow and evolve, there is room for growth within the ethnic/international foods category amongst Canadian shoppers. 
  • Currently only 1% of the visible-minority consumers surveyed purchased international food and ingredients online.  In comparison, 7% of American visible-minority shoppers purchase ethnic foods online.

"In our ever increasingly diverse Canadian towns and cities, it's no longer enough for retailers just to know customers' lifestyle and life-stage.  If grocers can further embrace both diverse cultures and evolving cultural tastes that reside within their neighbourhoods, there is a huge opportunity to develop a loyal following of valuable customers that will only continue to grow in importance and profitability." added Berry.

About LoyaltyOne

LoyaltyOne is a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty services for Fortune 1000 clients around the world. LoyaltyOne's unparalleled track record delivering sustained business performance improvement for clients stems from its unique combination of hands-on practitioner experience and continuous thought leadership. LoyaltyOne has over 20 years history leveraging data-driven insights to develop and operate some of the world's most effective loyalty programs and customer-centric solutions. These include the AIR MILES Reward Program, North America's premier coalition loyalty program; a majority stake in European-based BrandLoyalty, one of the largest and most successful campaign-driven loyalty marketers outside of the Americas; and a working partnership with Latin America's leading coalition program, dotz. LoyaltyOne is also the owner of COLLOQUY, a group dedicated to research, publishing and education for the global loyalty industry.

LoyaltyOne is an Alliance Data company. For more information, visit www.loyalty.com.

SOURCE: LoyaltyOne

Stacey Marson, LoyaltyOne, [email protected], 416.552.2834; Daniel O'Donnell, Environics Communications, [email protected], 416.969.3311