Saskatchewan: one of the most homogenous markets in Canada

In Saskatchewan our exploration of large land areas with relatively small numbers of consumers buying fresh fruits and vegetables continues. Certainly farming is a major part of the Saskatchewan economy.  According to the Saskatchewan Department of Agriculture, more than 40 million acres are in production. Obviously the vast majority is in field crops with only 9,000 acres dedicated to fruit and vegetables (including potatoes).

In Saskatchewan the two large cities make up just under half of the total population. In the entire province there are just more than one million people. After Saskatoon and Regina the population centres drop rapidly:

Population in Saskatchewan is much more homogeneous than many other Canadian provinces, with 98 per cent of Saskatchewan residents listing English as their first official language. This number is 75 per cent for the rest of Canada. In this list of languages spoken most often at home you can see the differences from the total country:

This market also has a median total income that is higher than the Canadian average. In 2015 the median total income in Saskatchewan was $75,412 compared to $70,336 for Canada. These consumers should have more disposable income for food purchases.

Customers influence the buying decision

All of the large food retailers have a presence in Saskatchewan, except Metro. 

Sobeys has been restructuring its business nationally and Saskatchewan has experienced changes as well. Sobeys and Safeway stores both operate in the province. The company also supplies some IGA stores, indicating plans to bring FreshCo to the western provinces as a discount offering.

Loblaw operates Real Canadian Superstores in Saskatchewan, as well as supplying the Extra Foods and No Frills banners. Previously, Loblaw operated Western Canada from Calgary but now it is all operated from the store support centre in Brampton, Ontario.

Walmart has continued to expand the number of Supercenters in the province. Walmart operates the Saskatchewan stores from its national office in Mississauga, however as in many Walmart markets, stores do have some autonomy to ensure they meet the needs of consumers in the market. 

Costco has three warehouses in Saskatchewan. The two stores in Saskatoon and one store in Regina are operated out of the Burnaby, B.C. Costco office. These warehouses offer similar assortments to warehouses in other regions.

Co-op stores continue to have a strong presence in Saskatchewan with the head office of Federated Co op in Saskatoon. Stores are supplied by Federated Co op and consumers have strong ties to this brand, especially in the rural markets. Co-op continues to be locally owned and support local products and initiatives.

As Overwaitea expanded across Western Canada they opened six stores in Saskatchewan.  The stores are similar to the Save On Foods stores in other markets. It is a conventional store offering with more focus on local.

Your competition

As we discussed earlier, fruit and vegetable production in Saskatchewan is limited. Consumers in this market want to buy local as much as any other.

Source: Agriculture  & Agri-Food Canada statistical overview of Canadian Agriculture

Saskatchewan is among the lowest provinces for fruit and vegetable acres and farm gate. 

The Saskatchewan market

With a rich history in agriculture and more demand for ‘buy local’ it will be interesting to see if the selection of local fruits and vegetables grows. Consumers and retailers will continue to expect the selection we see in other markets so if the products are not available from local producers with the specs and standards expected they will come from other regions.

If you have any questions about selling your products or developing strategies for specific customers please give me a call at (902) 489-2900 or send me an email at peter@skufood.com.  

WHAT’S IN STORE? 

Campbell’s crowd pleasers might be customer pleasers too

This display rack was in the meat department at a Sobeys store I visited recently. (see photo) Campbell’s have expanded the selection in the stock category. With consumers making more soups at home this can be a sales opportunity.

The reason customers (retailers) will like this is when consumers buy the stock they are encouraged to buy a protein to go with it. Retailers appreciate programs from suppliers that increase the average basket size. The program is even more popular when it promotes the purchase of higher margin perishable items.