How this independent grocer is flourishing — and competing against the big players | Globalnews.ca

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How this independent grocer is flourishing — and competing against the big players | Globalnews.ca
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How this independent grocer is flourishing — and competing against the big players

Most Canadians buy food in stores owned by a handful of grocery giants, with Canada’s three largest grocers — Loblaws, Sobeys and Metro — collectively reporting more than $100 billion in sales and $3.6 billion in profits last year.“The entry of new competitors and growth of existing independents would increase competition, empower consumers, and drive businesses to lower prices, improve product quality, and innovate,” the study said.

the struggles and disadvantages faced by “new players and regional independents” in Canada’s grocery scene.In speaking with independent grocers, the researchers found that many had to buy their stock from their competitors — such as Loblaws and Sobeys — because they weren’t big enough to have their own warehouses or buy directly from suppliers. As well, larger grocers are paid by suppliers to have their products on shelves.

“You know, Sobeys started in Stellarton, , right? And grew to be a regional company. And then all of a sudden, in a very quick period of time, they’re a national strong player through acquisitions,” he said.McHugh said the giants are “formidable” and it’s not easy for independents to grow or flourish.“For example, in this market, Atlanta, Canada, we had Pete’s Frootique, right? Nice little independent grocery store, good profit, I’m guessing.

. So almost anytime a small niche player comes along and becomes successful, one of the bigger players buys them.”Gateway looking to expand As for Gateway, Selig said it wants to remain a small family-run business and it’s not looking to open a second location.The store is currently 2,200 square feet, and the Seligs hope to more than double that space. They recently submitted a rezoning application to the municipality for a new building on the existing property and the property next door they’ve purchased.

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