The cost of living is expected to rise further in Canada in 2023, continuing the trend from 2022. As a result, discounters will likely continue to benefit from increasing consumer demand for value products.
As cost of living rises people are becoming increasingly price sensitive and are making more shopping trips but are spending less per trip, with the focus being on achieving the best value, either through low pricing or accessing discounts and special offers. This situation presents a good opportunity for the growth of private label within the discounters channel.
Empire Co Ltd (GBO) operates the Price Chopper and Freshco chains of discounters in Canada through Sobeys Inc (NBO). The Company continues to expand its discounters business in western Canada with 41 stores now operating in this region of the country.
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Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.See All of Our Definitions
This report originates from Passport, our Discounters research and analysis database.
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