Specialty grocery stores like Adonis are gaining popularity thanks to the immigration of diverse populations in Canada as well as changing tastes among younger generations. These stores are meeting the demands of customers by offering a wide range of products from various ethnic and cultural backgrounds. Adonis, originally started in Montreal in 1978, is expanding its reach by opening new stores, like the upcoming one in London, Ontario. Many newcomers to Canada see Adonis as their first stop to find familiar flavors and ingredients, leading to a new wave of loyal customers. This growth in specialty stores reflects a shift in customer preferences away from traditional grocery stores that may not always meet the diverse needs of the community.
As the population of Canada becomes more diverse, grocery retailers and producers are making a conscious effort to cater to the changing demographics. Statistics Canada’s 2021 census identified over 450 ethnic and cultural origins within the Canadian population, with groups like South Asian, Chinese, and Black communities experiencing significant growth. Winning the shopping dollars of these new Canadians has become a key strategy for retailers like Conagra Brands International, who are expanding their offerings to appeal to a wider range of tastes and preferences. Younger generations are also driving this change by showing interest in trying new flavors and dishes from different cultures, influenced by the restaurant scene and social media.
Specialty stores like Adonis and Asian supermarket T&T are experiencing steady growth and support from major grocers like Loblaw and Metro, who are buying stakes in these companies to attract a larger customer base. This trend of “channel blurring” is evident as stores that were once associated with specific communities are now popular across demographics. Private label products from specialty grocers are making their way into mainstream stores, signaling a shift in the market towards more diverse offerings. Grocers are paying attention to the communities they serve, tailoring their product mix based on the local demographics to meet the demands of their customers.
Adonis, for example, has expanded its network by adding five stores since 2017 and anticipates further growth in Ontario and potentially other provinces. T&T has also broadened its customer base beyond just Asian clientele, reflecting the changing tastes and preferences of consumers. The increasing popularity of these specialty stores is a result of their ability to respond to changing customer demands and offer a diverse range of products that traditional grocery stores may not provide. This shift towards catering to a more diverse population is shaping the future of the grocery industry in Canada, with retailers recognizing the importance of meeting the demands of newcomers as well as established immigrant communities.
The growing immigrant population in Canada has prompted grocery retailers like Metro to focus on offering a wider assortment of products to cater to the diverse tastes of their customers. Discount retailer Food Basics, owned by Metro, has seen steady growth in the international aisle category over the past decade, with each store’s assortment now catering to the local community. As the population continues to become more diverse, the focus on providing culturally diverse products is expected to grow in importance over the next decade. Grocery retailers are leveraging data and insights to target specific communities and offer a more sophisticated range of products that align with the changing tastes and preferences of their customers. This shift towards offering a more diverse and inclusive range of products is seen as critical to the future success of grocery retailers in Canada.
