inflation | Help consumers

With prices soaring, consumers are looking for ways to save money on groceries. Compared to our American neighbours, Canadians have sorely fewer options.

The February food inflation rate in Canada reached 7.4%, its highest level in almost 15 years. Consumers are desperate for new ways to save on groceries. Using apps to reduce waste, opting for “taste tonight” deals, buying different brands and checking weekly flyers more often are some of the most popular strategies in both the US and Canada. But one thing Americans have in their savings toolbox that Canadians unfortunately don’t have is an incredibly sophisticated couponing industry.

The food inflation rate in February in the United States reached 8.6%. However, the culture of couponing is much more advanced than in Canada. Most American households receive numerous coupons each week. You find them literally everywhere. Conversely, since the start of the pandemic, promotions in Canada, including coupons, have become incredibly hard to find.

Many US stores allow multiple coupons to be used to purchase a single item. Very few retailers in Canada would submit to this practice.

In fact, in the United States, it even happens frequently to get a product for free due to the stacking of coupons.

Stores south of our border are also doubling the value of coupons on certain days of the week and allowing the use of coupons on food items already on sale. Plus, you can get credit at select stores if your coupon value exceeds the product itself. Suppose a product sells for $1 and your coupon has a value of $2, some retailers will give you cash for the difference. The world is totally different in Canada.

Americans can actually shop online and order as many coupons as they want. Empowering consumers to save is part of the American way of life, allowing consumers to save big at the grocery store.

In other words, given the options Americans have for saving, a food inflation rate of 8.6% in the United States is possibly equivalent to 5% in Canada. With the lack of tools to save, Canadians find themselves held hostage to food inflation.

Some Canadians claim to save up to $400 a week using coupons, in digital or paper format. But that’s a full-time job, because it takes almost 30 hours a week to get organized.

A recent survey from Dalhousie University suggested that more frequent use of coupons will become the most popular cost-cutting strategy in 2022 at the grocery store. A total of 52.8% of Canadians want to use coupons more often, but the terms of use can be quite overwhelming.

The Canadian food industry needs to change its approach to promotions and discounts. Canadians need help, and the industry needs to show it cares about its customers.

Since prices will only go up, Canadians will certainly appreciate techniques to help save money.

Volume discounts are also an issue for Canadians. Asking to buy three or four items at a time to save money when the customer only needs one is impractical and even problematic for many. Not only does this disadvantage one- and two-person households, but it also encourages people to buy more than they need, potentially generating more food waste. Promotional strategies need to be rethought.

The food industry has been providing Canadians with decent, high quality products at affordable prices for many years. There are only eight countries in the world that spend less than 10% of their household income on food, and Canada is one of them. But rising food prices have Canadians looking for new ways to save. The industry must show that it is ready to support them in this process.