Price trumps patriotism for Canadians at the grocery store: report
The recent trade spat between the U.S. and Canada has revived the “Buy Canadian” movement that began last year.
But despite intentions to shop homegrown goods at the grocery store, new research from Leger finds that price is the most influential factor driving Canadians’ purchasing decisions.
“Let’s not forget that Canadians are feeling the squeeze of rising costs all around them, and they have to make some hard decisions when it comes to many of their essential purchases,” Leger said. “People are paying very close attention to value, comparing their options and making trade-offs.”
Sixty four per cent of Canadians surveyed by Leger between Aug. 28 and 30 said they plan to actively search for Canadian-made products given renewed trade tensions with the U.S.
Half say they will look more actively for products from Canadian-owned companies, while 45% say they plan to avoid U.S.-made products altogether.
Only 10% say they do not plan to change what they buy at all.
When asked what would have the greatest influence on whether they switch to a Canadian-made alternative, price came first at 67%, followed by product quality at 56% and Made in Canada at 45%.
“Even if some of the initial elbows-up intensity has faded, the trade war is clearly still affecting how Canadians are thinking about their purchases,” Leger said.
READ: Are shoppers still buying Canadian?
About four in 10 Canadians surveyed were willing to pay at least some premium for comparable Canadian-made products. But almost half would only choose Canadian if it was the same price or cheaper than the U.S. alternative, and only 9% would pay more than a 10% premium.
Made in Canada is a top switching influence for 60% of Canadians over the age of 55 compared with just 25% of those aged 18-34.
Half of those surveyed said they would look for a Canadian-made alternative if the price increased for a U.S.-made product that they regularly buy. But it varies by category.
If a comparable Canadian product were available, 88% said they would be likely to switch in food and beverages, compared with 84% for household cleaning products, 83% for personal care and 81% for over-the-counter health and wellness products.
Loblaw Companies president and CEO Per Bank recently said while fewer grocery products will be affected by new counter-tariffs, customers may see higher prices in health, beauty and cosmetics.
Late last month, the retailer said it would reinstate shelf labels identifying U.S.-sourced products affected by counter-tariffs.
The grocer’s “T” symbol is expected to appear in stores by mid-September, Bank said.
“You won’t see Ts everywhere. We’ll first sell through inventory already in our stores before tariff-related costs are reflected in retail prices,” Bank said. “Given that many of these products sell more slowly, it could take weeks and potentially months before T’s become widespread.”
