Why Canadians are angry with their biggest supermarket

Emily Johnson created the Reddit group "LoblawsIsOutofControl" as a platform for people to express their frustration with the rising cost of food in Canada, specifically targeting Loblaw, the country's largest food retailer. The group's purpose was to share photos of grocery items with high prices and discuss the issue of increasing food inflation. This eventually led to the organization of a nationwide boycott against Loblaw, aiming to have a financial impact on the company and raise awareness about the issue.

Retail experts highlight several challenges that foreign grocers face when entering the Canadian market:

1. Dominance of Established Players: The Canadian grocery market is dominated by a few major players, such as Loblaw, Metro, and Sobeys, which control a significant portion of the retail market share. These companies have strong private labels, loyalty programs, and convenient locations, making it difficult for new entrants to gain market share5.

2. Regional Differences: Canada is a vast country with regional differences in consumer preferences and needs. Foreign grocers must understand and cater to these regional variations to succeed.

3. Multiculturalism: Canada is a highly multicultural country, with 20% of the population born elsewhere. A national grocer must target various cultural groups to find success.

4. Loyalty Programs: Loblaw, one of the dominant players in the market, has a strong loyalty points program that covers 40% of Canada's entire population5. Competing with such established loyalty programs is a challenge for new entrants.

5. High Costs of Business: The costs of doing business in Canada, including tariffs, employee protections, and distances to cover, can be high, potentially affecting profitability for foreign grocers.

6. Supply Chain Inequalities: Without addressing key issues such as supply chain inequalities, complex fiscal policies, and interprovincial trade barriers, it's unlikely that foreign grocers would find the Canadian market appealing.

7. Consumer Expectations: Canadian shoppers have different expectations and needs compared to those in other countries, such as the United States. Foreign retailers must tailor their offerings and shopping experiences to meet the expectations of Canadian consumers.

8. Oligopoly: The existing oligopoly in the Canadian grocery market, with a few dominant players, may deter new entrants due to the challenge of breaking the market concentration.

Despite these challenges, retail experts believe that careful market analysis, focusing on multicultural assortments, and offering exceptional shopping experiences can help foreign grocers succeed in the Canadian market.