Costco has solidified its position as the top choice for Canadian shoppers, according to the latest Dunnhumby Retailer Preference Index (RPI). This nationwide study, conducted by the customer data science company Dunnhumby, analyzed financial data from 28 of Canada’s largest grocery banners and surveyed 6,000 Canadians to identify the most preferred grocery retailers in the country.
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Costco Leads the Pack
Costco emerged as the number one grocery retailer in Canada, surpassing competitors like Super C and Maxi, which secured second and third place, respectively. Walmart followed in fourth place, rounding out the top-tier rankings.
The report highlighted Costco’s unique ability to deliver both superior quality and competitive pricing. “Costco clearly distinguishes itself from other retailers by achieving better-than-average quality and price, promo, rewards perceptions—the only retailer in Canada to do so,” stated the Dunnhumby report.
While Costco operates as a membership-based retailer, it is increasingly becoming an “everyday retailer” for Canadians, thanks to its accessibility through delivery platforms such as Uber Eats and Instacart.
Other High-Ranking Grocers
Several Loblaw banners also ranked in the first tercile of the study, including:
- Real Canadian Superstore (5th place)
- Wholesale Club (6th place)
- No Frills (9th place)
These stores stood out for their strong performance in price, promotions, and rewards.
The Importance of Discounts and Prices
The study emphasized the common traits among the top-ranking grocers: they are predominantly club, discount, and superstore banners.
“Conventional grocers, comprising almost 40% of the Canadian market, represent the second and third terciles,” the report noted.
Even with food inflation cooling in 2024, high grocery costs continued to impact Canadian households, prompting shoppers to prioritize value. This focus on affordability led to increased scrutiny of retailers. For instance, a mass boycott of Loblaw stores earlier this year underscored consumers’ dissatisfaction with high prices and perceived quality issues.
Key Factors Driving Retailer Success
According to Dunnhumby, the key to a retailer’s long-term success lies in three main factors:
- Price, Promotions, and Rewards (44%)
- Quality (31%)
- Other Factors (25%)
Conventional grocers like Loblaw and Save-On-Foods leveraged their rewards programs to stay competitive. The report praised Loblaw’s PC Optimum program as a “clear differentiator” for its banners, while Save-On-Foods’ More Rewards program ensured strong performance in British Columbia and the Prairies.
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Costco’s Consistent Excellence
This is not the first time Costco has been recognized for its exceptional customer satisfaction. Earlier in 2024, the retailer was named one of the world’s top 10 most trustworthy retailers, further solidifying its reputation for reliability and value.
Costco’s combination of affordability, quality, and convenience has earned it the top spot among Canadian grocery stores. As consumers continue to navigate economic challenges, retailers that prioritize value and customer trust will likely maintain their competitive edge.
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