In Canada’s urban areas, grocery stores tend to become smaller. “Real estate is very expensive in big cities like Vancouver,” says Brian Faulkner with BCfresh. Add to that the large parking area that surrounds the store and it becomes too much. “In addition, consumer demand for convenience is also an important driver of this change.”
Quick in and out
The large stores with bright lights and a huge selection of products seem to gradually make place for smaller formats that focus more on convenience. “Trips to smaller stores are much quicker as there is less square footage to cover and a smaller selection of products to choose from,” Faulkner mentioned. A key example is Loblaw’s purchasing Shoppers Drug Mart back in 2014. Many Shoppers Drug Marts have substantial grocery/convenience sections in their stores that allow people to make a quick trip and in out. “They will grab a bag of mandarins on the way out from picking up a cold medicine,” said Faulkner. “It is very efficient as it is just a stop along the way.”
Faith in smaller selection
“I am the main grocery shopper at my house and when I go to a large grocery store, I shop the perimeter,” Faulkner commented. “I focus on fresh produce, meat and dairy, but skip the middle aisles as it takes up too much time. I shop the aisles maybe once a week.” In smaller stores, the selection is more limited, but do consumers really need 15 sku’s of pasta to choose from? “We have faith that the items available in the smaller stores meet the standard. They have been tasted, tested and pre-selected for the consumer.”
Although products at smaller stores are sometimes more expensive, people balance ‘convenience’ versus ‘money’. “It is sometimes worth it to pay 25 percent more, just because of the time it saves from going into a large grocery store.” A more expensive product also results in balancing ‘want’ versus ‘need’.
For more information:
Brian Faulkner
BCfresh
Tel: (+1) 604-946-3139