The digital grocery landscape in Canada is evolving rapidly, presenting brands with unique opportunities and challenges. At the Digital Grocery Summit Canada 2024, industry leaders shared strategies for navigating this dynamic space. Here are the standout themes and actionable takeaways from the event.
The changing digital grocery landscape in Canada
Canada’s digital grocery market is uniquely positioned. 80% of Canadians are digital buyers, with a younger-than-average demographic. Digital grocery accounts for 8% of total ecommerce sales, with Click & Collect as the dominant fulfillment model. Canada also ranks second globally for Amazon’s share of digital sales, reinforcing its pivotal role in the market.
However, this growth brings complexity. Omnichannel shopping behaviors are reshaping how brands track and measure performance, making precise online P&L attribution essential.
Unlocking eCommerce profitability
Saad Abdullah of Essity shared a compelling framework for optimizing ecommerce profitability. The key lies in treating ecommerce as a standalone business unit and identifying opportunities to transform "P&L parachutes" into "rockets." This involves:
1: Product strategy optimization
- Focusing on high-value, easily shippable products
- Balancing price sensitivity with margin requirements
- Evaluating cost structures (COGS, logistics, advertising)
2: Performance metrics
- Pursuing EBIT positivity at both unit and SKU levels
- Understanding baseline ROAS/ACOS for EBIT breakeven
- Creating data-driven "must stock" lists
The power of omnichannel excellence
Monia Staropoli from Conagra Brands emphasized that modern shoppers expect seamless experiences across channels. With 73% of Canadians shopping both online and in-store, success requires:
- Integrated commerce marketing spanning shopper marketing, ecom marketing, and digital shelf optimization
- Strong digital shelf presence through optimized content and retail media investment
- Sophisticated content syndication across retailers
- Strategic connection between physical shelf and digital activations
Content as a conversion driver
Dale Calvert of Montclarity highlighted how Product Detail Pages (PDPs) serve as the final decision point for many shoppers. Key considerations include:
- Alignment between product photos, titles, and descriptions
- Value proposition of enhanced content (A+ content) versus basic content elements
- The role of user-generated content and reviews
- Content optimization for search performance
Building stronger retailer relationships
Retail media’s evolution is reshaping brand-retailer dynamics. Brands that lead with value propositions, collaborate with both retail and retail media teams, and foster innovation within partnerships are better positioned for success in this competitive space.
Looking ahead: Key focus areas
The future of digital grocery offers significant opportunities for brands focused on:
- Attribution modeling: Moving beyond basic lift studies to adopt causal frameworks integrating online and offline performance.
- Content strategy: Balancing investments across content types and measuring ROI for enhanced features.
- Retail media optimization: Defining clear ownership (trade vs. marketing) and building test-and-learn frameworks.
Ready to optimize your digital grocery strategy?
The digital grocery landscape is evolving fast. Staying ahead means focusing on customer experience, operational efficiency, and data-driven decision-making. For more insights or support, contact us.
