Retail Trends: Canadian Food Prices Expected to Rise in 2017
We’ve been hearing this for months now: Canadian food prices are expected to rise in 2017, with the average shopper experiencing a 5% increase on their food bills.
Canada’s Food Price Report, released by Dalhousie University, suggests that prices for meat, vegetables, fish and other seafood could jump by 4-6% and the cost for dairy, eggs, bakery products and cereals could increase by 2%. This could result in an average increase of over $400 a year for the typical shopper.
Here is a great visual prediction from Global News showing what each province can expect in the months to come:
According to Thomas Barlow, president and CEO of the Canadian Federation of Independent Grocers, protein will become the problem. As the price of crops rises, it costs more to feed, and thus the price of protein inevitably increases. Additionally, things like avian illnesses cause shortages – so too do decisions by some major restaurant chains to serve all-day breakfast.
“The pressure on the food supply is not going down,” said Barlow. “There was a time when people thought eating sashimi [raw fish] was unusual, but now it’s the norm. Maybe it’s time for us to consider insects as protein.” Viable? We can’t comment on that, but it is definitely an interesting consideration.
For many shoppers, while customer service, product availability, and brand loyalty all work to influence consumer behaviour, so too does prices. For retailers, this means new strategies need to be developed with regard to getting people not only through the doors, but with items in their carts. You need to be able to show that price isn’t everything – create a connection with your brand that speaks to them.
Set to launch a new product in this somewhat turbulent space? An experiential marketing campaign is a great way to garner positive attention and build a reputation based on actual customer experiences. This goes a long way when it comes to establishing that emotional connection.
At Storesupport, we have the experience and knowledge to help you carry out the retail merchandising campaigns that combat the impacts of climbing Canadian food prices. Get in touch with us today by calling 1-877-421-5081 or visiting www.storesupport.ca.
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