COVID has changed many things for many people, including the grocery and food industry in Canada. Is grocery delivery here to stay?
Grocery stores were the true winners of the COVID-19 pandemic. Sobeys’ parent company, Empire, reported a 37% increase in sales during the first few months of lockdown. Metro also reported a 7.8% revenue jump year over year.
Many grocery stores will continue to thrive. Yet, they must first change with the changing times.
From choosing wholesome options like natural deli meat (the healthiest deli meat) to getting groceries purely online, here are the top ways grocery shopping is transforming due to COVID.
Consumer Health Consciousness is Increasing
Consumer understanding about healthy eating has been increasing. And the pandemic sent health-conscious shopping into overdrive. Searches for organic deli meat, organic bacon, keto bacon, and natural deli meat have been up since COVID.
Why? Customers have had more free time to spend researching the foods they eat. And with more families looking for healthier ways to feed the family, it’s no wonder sales of products like nitrite-free ham are on the rise.
Grocery Worker Pay will Stay Up
Canadian grocers promised employees “hero pay” for working during the pandemic. And some experts believe this pay bump will be permanent, even after COVID.
At the same time, the rise of online grocers will spread the talent pool thin. Demand for workers will rise, forcing supermarkets and online grocery stores to pay top dollar for the best employees.
Online Grocery Shopping is Here to Stay
The COVID-19 pandemic changed the way Canadians eat. Canadians reallocated 30% of their budgets from take-home and restaurant to grocery store food in 2020.
Last year, approximately 4% of Canadians shopped for grocery items online. That has changed since the pandemic. About 24% of grocery shoppers in Canada fear going to the store, therefore making the shift to online shopping.
In a recent survey, 22% of Canadians said they plan to continue buying groceries online after COVID. Pureplay online retailers will be at an advantage. Especially since these grocers see lower operating costs despite higher prices.
Many Grocery Chains will Shutter
The switch to online shopping will decrease demand for in-store grocery-getting. Smart grocers will follow the trend, offering new online shopping and contactless home delivery services. But those stores that can’t flex with the times will be left behind.
Also, grocery store businesses are notorious for low margins (1%-2% is standard). Increased worker pay and increased hours for cleaning staff will increase operating costs. Thinning margins will cause many stores to close temporarily and some brands to go out of business altogether.
Get the Healthiest Deli Meat from MCLEAN MEATS
COVID-19 has changed the way Canadians get groceries. We want to shop from home and choose products that fit our healthier lifestyles. Grocery stores will accommodate these needs by switching services online, diversifying product offerings and paying workers competitive rates.
Are you searching for the healthiest deli meat company that has standards as high as yours? MCLEAN MEATS has the “clean”, organic deli meat products you’ve been searching for. Find a store near you or order your groceries for home delivery today!