This quarter, Walmart Canada marked its 10th consecutive quarter of growth. The retail giant reported same-store sales growth of 1.1 per cent, propelled by a 0.2 per cent gain in customer traffic and a 0.9 per cent gain in average basket size at checkout.
Despite this, Walmart’s gains and market takeover are slowing down: according to the Financial Post, traditional Canadian grocers have strategically lowered their food prices in a bid to entice customers drawn to price cuts at discount chains like Walmart.
According to a news release, the company’s total quarterly revenue rose by 3.3 per cent.
Currently, Walmart Canada has 408 stores, around 325 of which contain a full discount grocery store.
“We view it as positive (for Canada’s other retailers) that same-store sales growth at Walmart Canada is slowing, and that the supercentre roll-out is about 90 per cent complete, assuming some stores will not be converted to supercentres,” retail analyst Keith Howlett of Desjardins Securities told Grocery Business. “Walmart Canada and Costco Canada have achieved significant market share in grocery in Canada. This has, in our view, put significant stress on conventional grocers.”
Howlett’s point is valid: with Walmart’s growth slowing, Canadian independents will have a much better chance at regaining lost market share. Consider revamping marketing techniques and offering deals where applicable to attract Walmart’s price-savvy shoppers.
