Deep discounts slow down grocery growth

Grocery growth in Canada, which surged ahead 3.9% during the worst years of the recession in 2008 and 2009, slowed last year to just 2.9% as retailers and manufacturers enticed shoppers with price promotions.

The 2010 growth rate was well below the 10-year industry average of 4.1%, according to Canadian Grocer magazine's just-published annual Market Survey

With inflation factored in, 2010 sales at grocery stores in Canada grew just 1%.

The slower pace reflected the frugality of Canadian shoppers, who were hunting for bargains and buying more at discount stores. But it also was a result of slowing new-store expansion. Last year retailers spent more time remodeling stores than adding new square footage.

Overall, sales at grocery stores and supermarkets in Canada reached $84.7 billion in 2010.

For more, read the Market Survey in the February issue of Canadian Grocer, out new. To order copies contact our circulation manager Michelle Iliescu at [email protected]