Big grocery chains are missing a big opportunity by not stocking more ethnic foods, according to a new study by LoyaltyOne, which owns Air Miles.
While the ethnic food selection has improved among large retailers over the last few years, 63% of visible-minority shoppers in Canada feel their big-box grocery store doesn’t carry enough ethnic food, according to the study. As a result, two thirds of ethnic shoppers visit three or more shops a week to fulfil their food needs, with 18% visiting five or more.
“There’s a real opportunity for mainstream grocers to start understanding the next logical product extensions,” said Jeff Berry, senior director of research and development at LoyaltyOne.
But grocers shouldn’t focus on merely expanding the ethnic food section. “Ethnic foods are typically contained within one aisle — they’re isolated from the rest of the grocery experience,” said Berry. “There’s a real need to not only have more [ethnic] products, but for the products to be integrated throughout the store.”
Berry noted that Canada is already ethnically diverse, and by 2031, one third of all Canadians will be visible minorities. “So the way people think about food is completely different, and to have an Asian food section feels a little bit archaic at this point,” he said. “It’s food.”
To capture greater market share, grocers need to start engaging consumers in a more relevant way, said Berry, “not just in the way they market to consumers, but in the product selection and store layout.”
The study also found the opportunity for big-chain grocers goes beyond increasing the basket size among ethnic shoppers. More than two-thirds of non- visible-minority shoppers said they would cook more ethnic cuisine if the ingredients were more readily available, while 81% of visible-minority shoppers said the same.
Other key findings include:
-86% of visible-minority consumers said ethnic grocery selection is an important choice in selecting where they decide to shop
-69% of visible-minority Canadians are satisfied with independent retailers’ ethnic food selection compared to only 54% for large grocery chains
-Visible-minority Canadians are more likely than non-ethnic consumers to use independent grocers and markets to buy ethnic foods, with 39% doing so regularly compared to less than a quarter of non-ethnic shoppers
-Only 1% of the visible-minority consumers surveyed purchased international food and ingredients online. In comparison, 7% of American visible-minority shoppers purchase ethnic foods online.
