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.
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.
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:
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.
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If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
You should put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others: