Find distributors and retail buyers in Canada

Identifying the top retail chains in Canada where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.

It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.

In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.

The retail market in Canada

Canada, is the second-largest country in the world by land area, but also an interesting economy, and can be a trial market before going to the United States. As of 2023, it has an estimated population of about 38 million. Known for its vast landscapes, multicultural cities, and bilingual heritage (English and French), Canada is a symbol of diversity and environmental richness.

Economically, Canada has a high GDP per capita, standing at approximately $48,000 USD in 2023. The country’s economy is highly diversified, with key sectors including natural resources, manufacturing, and services. Natural resources like oil, natural gas, minerals, and timber are significant economic drivers, particularly in regions like Alberta and British Columbia. The service sector, including banking, insurance, and tourism, plays a central role in the national economy.

Opportunities in the Canada retail market

A huge amount of opportunities are anticipated owing to future potential of the retail sector in Canada. Canada’s retail market is believed to be more accessible to European companies due to CETA which is a free-trade agreement between Canada and the European Union.

Canadian consumers are interested in products of high quality and goods of high value. This is evident via the huge nationwide demand for international brands like H&M and IKEA.

While the nation’s retail market seems favourable in many ways, there are challenges that one may face entering this sector. Some of these are:

Strong competition within the country’s retail market segments
Negative effect of retail consumption due the inflating housing market in Toronto and Vancouver
Imports are affected by the weak Canadian dollar due to oil price drop
Need of geographical strategy due to Canada’s large market

Top-5 supermarkets in Canada

Loblaw Companies Limited: The largest supermarket chain in Canada, operating over 2,400 stores nationwide under various names including Loblaws, Real Canadian Superstore, No Frills, and Shoppers Drug Mart.

Sobeys Inc.: The second-largest chain, with more than 1,500 stores. Their retail stores include Sobeys, Safeway, IGA, Foodland, and FreshCo.

Metro Inc.: The third-largest chain, operating over 950 stores mainly in Ontario and Quebec under the Metro, Food Basics, Super C, and Foodland banners.

Empire Company Limited: The parent company of Sobeys Inc., it holds a significant presence in the grocery market with various business units including retail (Sobeys, Safeway, IGA, etc.), wholesale, fuel, and real estate.

Save-On-Foods: A prominent supermarket chain in Western Canada, operating over 170 stores in regions like British Columbia, Alberta, Saskatchewan, Manitoba, and the Yukon Territory.

Distributor, retailer or web shop?

Most consumer products need at least one party in between. A distributor imports, stores and physically distributes your product, but rarely promotes it to consumers. A large retailer is the fastest route to the mass market, but is risk averse and often asks a listing fee.

A specialised web shop takes smaller volumes, but gives you reviews, pricing feedback and brand awareness within weeks.

Most exporters combine them: start where the barrier is lowest and use the sales data you gather there to convince the bigger names later.

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Finding a distributor in Canada in three steps

Step 1

Map the channel

List 10 to 15 distributors and retailers that already carry comparable products. Check which regions and store types they serve, and which brands they represent.

Step 2

Build a partner pitch

Your consumer sales deck is not enough. Show margin, rotation, returns and the support they get from you, with concrete figures from your home market.

Step 3

Approach and agree

Contact five to eight of them, propose a trial order or a pilot region, and settle pricing, minimum volumes, exclusivity and marketing support.