Food Inflation Creates More Tactical Grocery Shoppers in Canada

Date:

Share post:

Persistent food inflation is changing how consumers approach the grocery aisle, with new survey findings pointing to more price comparison, increased private-label purchasing and broader efforts to stretch household food budgets.

A new study from Milesopedia found that 96% of respondents believed their grocery bills had increased over the previous 12 months, including 60.5% who said costs had increased significantly. Seven in 10 said they had changed their grocery shopping habits in response.

Among those surveyed, 71.1% said they were comparing prices between retailers more often, 39.1% reported buying more private-label or store-brand products, 34% were using coupons or discount applications, and 24.4% had reduced purchases in categories such as meat or fresh food.

Yet only 9.6% said they had changed their preferred retailer.

The combination points to a more deliberate grocery shopper. Consumers appear to be searching harder for value and shifting individual purchases while often maintaining an underlying preference for a particular retailer. For grocers, the competitive battle increasingly extends to individual categories, promotions and shopping trips.

The Milesopedia survey included 203 respondents and was conducted between June 1 and 8, 2026. Participants were recruited through the company’s newsletter and private Facebook community, and approximately 83% were based in Quebec.

The study used a non-probability sample and is not representative of the Canadian population as a whole. Respondents were also more familiar with loyalty and rewards programs than the general population. The findings nevertheless provide a timely snapshot of a highly engaged group actively looking for ways to manage grocery spending.

Grocery Inflation Keeps Pressure on Household Budgets

The findings come as grocery prices continue to place pressure on Canadian households.

Statistics Canada reported that prices for food purchased from stores increased 4.3% year over year in May 2026. Overall food prices were up 3.8%, while the Consumer Price Index rose 3.2%.

Some categories experienced steeper increases. Meat prices rose 6% from a year earlier, while fresh vegetable prices increased 9% and fresh fruit prices rose 5.3%.

That backdrop helps explain the level of concern captured by Milesopedia. More than three-quarters of respondents, 77.6%, said they were fairly or very concerned about further grocery price increases in the coming months.

The findings suggest affordability pressures are shaping decisions well before consumers reach the checkout. Shoppers are examining offers more closely, reconsidering product choices and looking for savings across several parts of the grocery trip.

Price Comparison Becomes More Common

The 71.1% of respondents who said they were comparing prices between retailers more frequently is one of the clearest signs of changing behaviour.

Digital flyers, loyalty applications, coupons and retailer promotions give consumers more ways to assess competing offers. Sustained inflation provides a stronger reason to use those tools regularly.

The result can be a more fragmented shopping pattern. A household may still conduct its principal weekly shop at one retailer while buying selected categories elsewhere, stocking up when products go on promotion or visiting a discount banner for part of the basket.

That makes the preferred-retailer finding particularly interesting. Only 9.6% said they had changed their preferred retailer, despite the much larger share comparing prices more often.

The two findings are not necessarily contradictory. A shopper can favour one banner while becoming more flexible about individual purchases. In practice, retailer preference may remain intact even as a household distributes more of its grocery spending across competing stores and formats.

For grocers, that puts greater pressure on each category and trip. Keeping a customer does not guarantee keeping the same portion of the household grocery budget.

Private Label Gains Further Momentum

Private label is among the clearest beneficiaries of the search for value.

Milesopedia found that 39.1% of respondents were buying more store-brand products, aligning with a broader shift Retail Insider has documented across the Canadian grocery sector.

In a June 2026 interview with Retail Insider, veteran grocery executive Michael Commisso described the importance of private label in direct terms.

“Private label is huge,” Commisso said.

His assessment reflects decades of experience in the Canadian grocery industry. Commisso has held senior roles with Loblaw, Sobeys and Longo’s, among others, giving him a close view of how grocery assortments and consumer expectations have evolved.

He told Retail Insider that private label has moved well beyond its earlier association with basic, low-cost substitutes for national brands. Retailers have built increasingly sophisticated own-brand programs serving different price points, categories and consumer needs.

That evolution carries particular weight when household budgets are under pressure. A strong private-label assortment can give shoppers a lower-priced option without forcing them to leave the retailer.

Canadian grocers have invested heavily in these programs. Loblaw has extensive portfolios around President’s Choice and No Name, while other grocery retailers have expanded exclusive brands and retailer-owned product lines across a wide range of categories.

The trend has been building for years. In 2025, Elliot Morris, Partner at EY Canada, told Retail Insider that twice as many Canadian consumers were buying private-label brands as five years earlier. He also pointed to research indicating that roughly 40% of consumers who tried private label did not intend to return to traditional brands.

Morris told Retail Insider again in May 2026 that retailers were continuing to expand private-label penetration and increase their own-brand assortments as consumers prioritized value.

The significance reaches beyond a short-term search for cheaper products. Once shoppers become comfortable with the quality of a store brand, the national brand may no longer be the automatic choice.

For grocers, private label can address affordability concerns while strengthening assortment differentiation and retaining purchases that might otherwise move to a competing banner.

Loyalty Programs Face a Value Test

The Milesopedia study also reveals a notable gap between loyalty-program usage and the financial relief consumers believe those programs provide.

The survey audience is highly familiar with rewards. Some 93.9% of respondents said they knew grocery rewards programs fairly or very well, while 85% reported using a program every time they shopped for groceries.

Despite that engagement, nearly half, 49.5%, believed rewards programs offset very little or none of the increase in grocery prices. Only 7.1% believed rewards significantly reduced the impact.

The finding is particularly noteworthy given the profile of the sample. These are consumers generally more knowledgeable about points, rewards and related strategies than the wider population.

The results do not indicate that loyalty programs lack value. High participation suggests they remain deeply embedded in shopping behaviour, and consumers can benefit from points, personalized offers and member pricing.

The distinction lies in perceived impact. Many respondents appear to see value in participating while remaining unconvinced that the benefits meaningfully compensate for rising grocery costs.

For grocers, that gap matters. A loyalty ecosystem can support engagement and strengthen customer relationships, but sustained inflation may increase demand for savings that are immediate and easy to recognize.

What the Shift Means for Canadian Grocers

The broader picture is one of consumers drawing on several strategies at once.

They are comparing prices, increasing private-label purchases, using coupons and discount applications, and in some cases reducing purchases in categories where costs have become difficult to absorb.

That creates a more demanding competitive environment. A grocer can remain a shopper’s preferred banner while losing portions of the basket to a rival with a stronger promotion, a better price in a key category or a compelling private-label alternative.

Private label is likely to remain central to that contest. It gives retailers greater control over assortment and pricing while offering consumers options across multiple price points.

Loyalty programs face a different challenge. Participation remains high among the Milesopedia respondents, yet many do not believe rewards are doing much to counter rising grocery costs. Visible savings and relevant offers may therefore carry greater weight as households scrutinize spending.

The emerging grocery shopper is becoming more precise about where money goes, combining retailer preference with a willingness to compare prices, substitute products and move purchases.

For Canadian grocers, the challenge may be less about whether a customer formally switches allegiance and more about how much of each basket remains available to competitors.

More from Retail Insider:

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Boston Pizza Accelerates Canadian Restaurant Renovations, Adds New Locations

Boston Pizza is ramping up investment across Canada with more than 40 restaurant renovations possible in 2026 and three new locations under construction.

HelloFresh Expands Factor Across Canada as Ready-to-Eat Strategy Grows

HelloFresh is expanding Factor across Canada as it invests in ready-to-eat meals, new distribution channels and a broader convenience-food strategy.

Public safety and construction deal heavy blows to Edmonton downtown businesses

"The once vibrant pulse of Edmonton’s downtown is fading further, leaving behind a landscape that feels increasingly desolate.”

Empire to acquire nine Morelli’s pharmacies in Ontario

The pharmacies will be brought into Sobeys’ National Pharmacy operations as part of the transaction.

Canadian Tire Prepares for AI Shopping as Retail Strategy Evolves

Canadian Tire is using AI to reshape merchandising, back-to-school assortments and digital content as shoppers increasingly turn to AI for product discovery.

Healthy Planet expands to Yonge and Eglinton with 45th Ontario location

Launches Annual Good Food Drive to help fight food insecurity across Canada

Skin Excellence Medspa offers 30% discount as it launches influencer partnership program

The initiatives give the clinic two approaches to attracting customers: a price reduction across its service menu and a partnership program designed to generate promotional content through local creators.

Fizz expands retail presence through EB Games Canada partnership

The agreement marks an expansion of Fizz’s in-store presence as the company continues to build its wireless business beyond its original Quebec market.

Daily Synopsis: August 19, 2026

Fake maple syrup class action targets grocers, end of an era for Husky brand, 200k retail development coming to Calgary, Costco breaks ground on Winnipeg store, and other news.

Pandora Expands Canadian Footprint While Reshaping Jewellery Strategy

Pandora is expanding its Canadian business while reducing promotions, investing in stores and preparing a broader shift toward platinum-plated jewellery.

Coach Expands Store Investment as Gen Z Drives Global Growth

Coach is raising handbag prices, reducing promotions and investing in stores as Gen Z drives growth, with 29 locations operating across Canada.

Shopify Expands Cross-Border Ecommerce Tools for Canadian Retailers

Shopify is expanding Managed Markets to eligible Canadian merchants as Global-e reports growing adoption and strong cross-border ecommerce demand.

RUDSAK Opening Bloor Street Store at Toronto’s Manulife Centre

RUDSAK is opening a new store at Toronto’s Manulife Centre on Bloor Street, taking space that includes the former Birks Van Cleef & Arpels boutique.

Groupe Dynamite appoints new digital leader as Chief Customer Officer

Henry Spear brings more than two decades of experience across digital, E-commerce, customer experience, and omni-channel retail.

25% of New Businesses in Canada Are Started by New Canadians: CFA

There are more than 800,000 self-employed newcomers across Canada.

Why Major Retailers Are Turning Employees Into Content Creators: Billo

“Showing authentic and imperfect people on camera is a very good strategy for brands that want to create relationships with their audience and win their trust in the age of AI."

GoodLeaf Farms says all three Canadian vertical farms have reached profitability

The Canadian vertical farming operator reported revenue of $34 million in 2025, up from $6.4 million in 2023. Revenue has increased another 31 per cent in 2026.

Small business confidence hits three-year low as costs rise and cash reserves shrink: Zensurance

Confidence fell to 49 per cent this year, down from 58 per cent in 2025 and 70 per cent in 2024.

Daily Synopsis: August 18, 2026

Sport Check expanding 'destination' sport stores in department store spaces, Canada could lose 2,500 restaurants this year, David's Tea expands, Shake Shack opening new locations, and other news.

SportChek Plans More Destination Sport Stores as HBC Spaces Create Opportunities

SportChek is accelerating its Destination Sport rollout across Canada as Canadian Tire eyes former Hudson’s Bay and other department-store spaces for expansion.