As the primary food source for many consumers, and the primary sales outlet for many producers and processors, the grocery sector plays a critical role in Canada. Jeewani Fernando, provincial consumer market analyst with the Alberta government, points out some key factors about the structure of the grocery market in Canada and Alberta.
Canada’s grocery industry is concentrated. Most Canadians buy groceries from one of 5 companies: Loblaws, Sobeys, Metro, Costco and Walmart. These companies hold about 76% of the grocery market share.
The rest of the market consists of a few large regional chains and thousands of independent retailers and convenience stores.
There are a number of banners operating under Loblaws, Sobeys and Metro. They compete with regional chains and independent stores.
The online grocery segment is still developing in Canada.
The grocery landscape in Alberta is more or less like the Canadian landscape. Four of the 5 largest grocers operate in Alberta under various banners (Loblaws, Sobeys, Costco and Walmart).
Compared to the national industry, Alberta ranks fourth in total annual sales and store locations.
For more information, download: Trends in Retail Report