While there are several big-name grocery chains across the country, Costco remains the clear favourite for Canadians.
That’s according to the recently published Dunnhumby Retailer Preference Index (RPI). The customer data science company conducted a nationwide study of Canada’s grocery market, analyzing financial data for the country’s 28 largest conventional, discount, superstore, and club banners. It also surveyed 6,000 Canadians to determine its results.
Costco was named the top Canadian grocery retailer, followed by Quebec-based grocers Super C and Maxi, which placed second and third, and Walmart in fourth.
oasisamuel/Shutterstock
“Costco clearly distinguishes itself from other retailers by achieving both better than average quality and price, promo, rewards perceptions – the only retailer in Canada to do so,” stated the report.
While Costco requires shoppers to have a membership, Dunnhumby noted that it is shifting towards being an “everyday retailer” for customers. It’s becoming more accessible through different delivery channels, such as Uber Eats and Instacart.
Some Loblaw banners also made the first tercile list, including Real Canadian Superstore (5), Wholesale Club (6), and No Frills (9).
Discounts and prices matter
Dunnhumby highlighted that all of the top-ranking grocers had something in common as they were club, discount, and superstore banners.
“Conventional grocers, comprising almost 40% of the Canadian market, represent the second and third terciles,” stated the report.
dunnhumby
Even with food inflation cooling in 2024, Canadians still felt the impact of high grocery costs, so they took action.
The report noted that customers were “more resolved than ever to hold retailers accountable.”
This stance on accountability was evident in a mass boycott of Loblaw stores this year, as customers expressed frustration with the grocery giant’s high prices and quality issues.
According to the study’s key findings, 44% of a retailer’s long-term success is based on price, promotions, and rewards, followed by quality (31%).
Conventional retailers like Loblaw stores or BC-based Save-On-Foods compensated their disadvantages to the first tercile retailers with rewards programs.
“Loblaw Companies’ PC Optimum program is a clear differentiator for all Loblaw’s banner. And Save-On-Foods More Rewards program ensures it is the highest-performing conventional grocer in British Columbia and the Prairies,” stated the report.
This isn’t the first time Costco has received high praise for its performance and customer satisfaction.
Earlier this year, the company was named one of the world’s top 10 most trustworthy retailers.