Consolidation—Over the last five years, Canada’s leading grocery chains have acquired many of their smaller competitors. The four major players now account for more than 70 per cent of sales, enabling them to take advantage of economies of scale.
Food Price Deflation—Competition remains fierce in the industry, which has led to declining prices for many staple goods, including bread, eggs, some fruits, and many varieties of meat. This has put downward pressure on industry margins.
Online Shopping—Some grocery chains have launched delivery services, as an increasing number of shoppers are purchasing nonperishable food items online.