Leger, the largest Canadian-owned market research and analytics firm, has released the second edition of its study, Cracking the Newcomer Code, a comprehensive study of newcomers to Canada.
The company said in a news release that the study offers an unprecedented perspective on the experiences, challenges, and issues newcomers face while painting a portrait of the evolution of their situation in various areas, such as the economy, employment, housing, societal integration, and perceptions of racism in Canada.
“This edition of the study also includes a brand-new section on newcomers’ retail habits in Canada, focusing specifically on grocery shopping and the beauty and personal care industry. Additionally, a more general retail-focused section has been added, addressing improvements to stores, advertisements, and loyalty programs,” it said.
“Retailers play a key role in helping newcomers to Canada feel at home,” said Lisa Covens, Vice President of Public Affairs at Leger. “With many newcomers facing financial challenges and looking for products that reflect their culture, offering diverse options and strong loyalty programs can make a big difference. Retailers have a unique opportunity to support newcomers while building stronger, more inclusive communities.”
Amid the federal government scaling back on its original immigration plans, as they plan to decrease the expected new permanent resident targets by 27% by 2027, it is increasingly important that Canada welcomes and retains the newcomers who choose our country. Embracing and supporting newcomers, both in society and through retail, is vital to fostering their integration and encouraging them to stay. This study, unveiled in a
webinar, is essential for those seeking to understand how this population thinks and shops and how products and services can be better adapted to suit their needs, said Leger.
Key takeaways from the study
- Newcomers are walking a financial tightrope as they grapple with the Canadian economy;
- Financial pressures plague newcomers to Canada with 51% describing their financial situation as poor compared to just over a third of the general population in Canada;
- Adding to this, many newcomers are walking the income-expense tightrope with 58% saying their income is either equal or less than their expenses;
- From home to the grocery aisle, cultural connection matters. One-quarter say the availability of ethnic products from their country of origin is an important key factor when choosing a grocery retailer;
- Even more striking, 61% say their cultural background influences their purchasing decisions when shopping at a grocery store. Additionally, three in 10 say it is important that the staff member serving them is from their community;
- Gaps in the aisles: room for improvement for grocers to meet the needs of newcomers. Two-fifths (44%) face challenges finding grocery products that meet their cultural or dietary preferences including food, cultural products, and spices or sauces;
- Similar challenges exist in the personal care and beauty sector, with 38% reporting challenges finding products that meet their cultural preferences, such as skin and hair products;
- First-moved advantage is effective as loyalty programs are important to newcomers;
- Like all Canadians, newcomers have embraced loyalty rewards programs with nearly all belonging to at least one loyalty program. More than half of newcomers (54%) say that a loyalty program is a method for attracting newcomers;
- Furthermore, nearly three-quarters of newcomers say they would be likely to switch retailers for better loyalty reward;
- Optimism and opportunity: newcomers have a renewed hope in Canada to live up to its promise. Two-thirds of newcomers would choose to immigrate to Canada again, a figure unchanged since Spring 2024;
- While three-quarters plan to stay permanently, one- quarter is considering leaving;
- Retailers can play a key role in keeping newcomers in Canada, as two-thirds say retailers help them adapt to Canadian culture and feel positive when they find familiar products;
- Despite challenges, 80% of newcomers remain hopeful that Canada will uphold its values. Six in 10 feel positive about sharing that they are a newcomer, with one-third sharing their status proudly.
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