Top 12 grocery stores to see in

City Guide

April 17

© IGD 2017 Source: IGD Research Introduction This insight report was prepared by:

Stewart Samuel Based in North America, Stewart Program Director, IGD heads up all of IGD's research and coverage on the region. He regularly [email protected] travels across the US and Canada, @Stewart_IGD visiting stores, and meeting with senior and supplier teams.

Welcome to Toronto for SIAL 2017! Drawing on our city knowledge, we have pulled together an outstanding list of grocery-focused stores to visit in Toronto, including national and local operators. The selection includes a number of stores which have recently opened, bringing a new dimension to the city’s grocery sector. The city offers the opportunity to see a broad range of store formats including: • Hypermarkets • Food halls • • Discount stores • Health and wellness specialists • Ethnic focused stores • Food-to-go focused outlets

© IGD 2017 Source: IGD Research Page 2 Where to find the stores 7

The majority of the stores are located in 6 5 and around the downtown area. One of the key trends we are seeing in the market is the push towards urban store formats. This is being driven by the significant increase in residential and 3 4 commercial development. In addition to the stores we have identified in this guide, others to see in the downtown area include: 2 • Drugstores 1 • • Rexall • Variety discount stores • • Liquor stores • LCBO • The Beer Store

© IGD 2017 Source: IGD Research , Map data © 2017 Google Page 3 Where to find 9 the stores

10 8 A number of the stores are located in nearby cities, including a range of specialist stores and new concepts: • • Nature’s Emporium • Chalo! FreshCo 1-7 • Supercenter • Marché Adonis

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© IGD 2017 Source: IGD Research , Map data © 2017 Google Page 4 What to look for

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INSPIRATION FOOD-TO-GO FRESH FOODS PRICE FOCUS

Pusateri’s The Market by Longo’s Whole Foods Market Walmart Supercentre McEwan Foods Metro Metro Loblaws Maple Leaf Gardens Loblaws Maple Leaf Gardens Chalo! FreshCo Marché Adonis Urban Fresh Sobeys Urban Fresh Metro Nature’s Emporium

© IGD 2017 Source: IGD Research Page 5 Metro 100 Lynn Williams St, Toronto, ON M6K 3N6

Supermarket

Visit for: inspiration, fresh food merchandising, bakery excellence, prepared foods and new natural pharmacy partnership

Metro is Canada’s third largest grocery retailer, operating stores in and . This store forms part of its ‘WOW’ innovation format program. This initiative has been developed to create real points of difference between Metro and its competitors. Metro’s key strengths are brought to life at this 5,000 SQ M store including fresh produce, prepared foods, bakery and pharmacy. Food-to-go is an area of strength for Metro which it has been able to showcase in this urban focused store. The hot food offer includes a range of artisanal pizzas, hot entrees, baked potatoes and rotisserie chicken. In addition to a traditional pharmacy, this store also features a natural dispensary operated by ‘Nature’s Signature’.

© IGD 2017 Source: IGD Research Page 6 Sobeys Urban 22 Fort York Blvd, Toronto, ON M5V 3Z2, Fresh

Visit for: inspiration, fresh food merchandising, food-to-go, Nutella Cafe

Sobeys is Canada’s second largest grocery retailer. It has developed a multi- format strategy, with Urban Fresh its format for downtown, city locations. This 2,000 SQ M store re-opened in 2015 following a major remodel which was aligned to the retailer’s ‘Better Food For All’ strategy. Urban Fresh stores are intended to serve as one-stop grocery destinations for the urban shopper. One of the major features of this store is its prepared foods and food-to-go offer. This includes an extensive range of prepared meals, pizzas sandwiches and hot and cold food bars. Shoppers can also opt for sushi, udon, ramen and rice bowls prepared fresh on-site. This store also saw the opening of the first Nutella Café in the city.

© IGD 2017 Source: IGD Research Page 7 79 The PATH - Toronto- Bank Tower, Toronto, ON McEwan M5K 1A1

Food-to-go

Visit for: food-to-go, premium retailing, concept design

McEwan at TD Centre is owned and operated by Mark McEwan, one of Canada’s leading chefs, and a regular TV personality. This is his second retail venture, although he operates a number of restaurants in Toronto. This 600 SQ M store is located with the PATH system in Toronto, a network of underground commuter tunnels, and is a great example of the blurring of retail and foodservice. The store offers a rotating menu of products depending on the time of day. In the morning, shoppers can find waffles, fresh orange juice and gourmet sandwiches. At lunchtime and in the evening a hot table features over 20 dishes, including a full curry bar, with many recipes coming directly from Mark McEwan’s restaurants.

© IGD 2017 Source: IGD Research Page 8 The Market by 181 Bay St, Toronto, ON M5J 2T3, Longo’s Food-to-go

Visit for: food-to-go, fresh foods

Longo’s is a regionally operated chain with 30 stores in the . The retailer has a strong reputation for fresh and prepared foods. While the majority of its stores are supermarkets, it has also developed ‘The Market by Longo’s’. This is a smaller format store concept for urban locations, including transit stations. The proposition is focused on meeting shoppers’ immediate food needs. This includes a range of food-to-go options, including a prepared foods hot bar, salad bar, pizza, panini, hot soup bar and custom-made gourmet sandwiches. The store also features a great design, with the extensive use of wood creating a natural backdrop. The retailer also places an emphasis on delivering a fast checkout experience in this high traffic location.

© IGD 2017 Source: IGD Research Page 9 No Frills 200 Front St E, Toronto, ON M5A 4T9

Discount

Visit for: price and value communication, private brands, operating efficiencies

No Frills is Loblaw’s primary discount format. Stores are around 3,000 SQ M and offer up to 20,000 products. They do not operate with any service counters and aim to be the low price leader in the local markets within which they operate. Fresh produce is a primary traffic driver for No Frills. It also helps to set shopper expectations around freshness and value. As a discount format, communicating its low price and value credentials is critical. It does this in a number of ways including its “won’t be beat” price matching policy, and a range of its own promotions. In contrast to its competitors, No Frills runs a lower number of weekly promotions. This enables it to get cut-through for the items which it is promoting while also helping to drive in-store efficiencies.

© IGD 2017 Source: IGD Research Page 10 Saks Food Hall 176 Yonge St, Toronto, ON M5C 2L7 by Pusateri’s Food hall

Visit for: inspiration, innovative food offers, service counters, food-to-go

This is one of the most recent additions to the city’s grocery offer, and one of the most unique. As part of its entry into the Canadian retail sector, US-based department store chain, Saks Fifth Avenue, has partnered with Toronto’s leading premium food retailer, Pusateri’s to create a food offer within its stores. The aim has been to create a contemporary food hall which offers a distinctive and elevated food experience, built around a range of dine-in options, unique products and service counters and stations. Apart from the outstanding in-store environment, the store boasts several innovative features such as vegetable butcher, date bar, yoghurt bar and a gluten-free, soy-free, vegan bakery.

© IGD 2017 Source: IGD Research Page 11 Loblaws 60 Carlton St, Toronto, ON M5B 1J2 Maple Leaf Food hall

Gardens Visit for: inspiration, fresh foods, service counters, food-to-go

This is Loblaw’s flagship store, and the basis for its ‘Inspire’ format program. This is a highly innovative and creative store which seeks to demonstrate the retailer’s fresh food credentials. The food hall offers an array of food options which have been created by a team of chefs with global food experience. Options are available for breakfast, lunch and dinner, and all times in between, which can either be consumed within the store or taken away. Key features in this area include an 6M wall of cheese, a patisserie, tea emporium, chocolate which can be chiselled by the chunk, an artisan bakery and a sushi counter which leverages the retailer’s T&T brand (Asian specialist). The retailer’s range of apparel can be found on the second floor.

© IGD 2017 Source: IGD Research Page 12 Whole Foods 4771 Yonge St, North York, ON M2N 5M5 Market Supermarket

Visit for: inspiration, food-to-go, prepared foods, fresh foods, natural and organics

Whole Foods Market continues to deliver some of the most innovative store concepts in North America. The retailer uses its deep understanding of the category and local markets to deliver a highly relevant offer in each store. It can successfully adapt a concept from one store to another through menu and branding changes, while maintaining relatively similar operating processes. At this store, a full service diner is a first for its Toronto locations. It offers store made burgers, smoked-meat sandwiches and a breakfast poutine. At the Yonge & Sheppard Kitchen, it offers a variety of quick and fresh on the go meals for lunch and dinner. Venues include: Taqueria, Stir Fry Station and Wood Fired Pizza. Key departments to visit in this store include fresh produce, bakery and bulk foods. © IGD 2017 Source: IGD Research Page 13 Nature’s 2535 Major MacKenzie Dr W, Maple, ON L6A 1C6, Emporium Supermarket

Visit for: natural and organics, healthy food-to-go, consumer engagement and education

Nature’s Emporium was established in 1993 with the goal of introducing and providing a healthy and natural lifestyle through its health food stores. Currently the retailer has two units in operation. The proposition focuses on offering farm- fresh, local, exclusively organic produce, natural vitamins and supplements, grass- fed, traditionally raised meats, sustainable seafood, organic and natural groceries, gluten-free, vegan raw foods, and a wide variety of natural skincare, cosmetics and personal care products. The 5,000 SQM store offers a range of departments including an impressive bakery with a range of gluten free and whole-grain products. The grocery department features over 100 unique bulk products and products made by local small-batch producers.

© IGD 2017 Source: IGD Research Page 14 Chalo! 10615 Bramalea Rd, , ON L6R 3P4 FreshCo Discount

Visit for: price and value communication, ethnic food ranges (South Asian)

Launched by Sobeys in 2015, this store is based on its highly successful FreshCo discount grocery format. The concept has been modified to target South Asians, one of the largest ethnic groups in Canada. From the external and internal branding, to the graphics and merchandising, this store takes many design cues from grocery stores in South Asia. However, given the FreshCo format, the store has broad appeal across different shopper groups. At over 4,500 SQ M the store is the largest in the FreshCo network; around one-third of the store is dedicated to its South Asian offering, with the remainder of the space reflecting the traditional FreshCo offering of North American brands.

© IGD 2017 Source: IGD Research Page 15 Walmart 3155 Argentia Rd, , ON L5N 8E1 Supercentre Hypermarket

Visit for: price and value communication, ranging

This store was remodelled in 2016 as part of the retailer’s focus on store reinvention. It represents a new vision for the Supercentre in Canada. Featuring a new layout, equipment and signage, the store takes the current Supercentre model closer to a discount hypermarket model. An increased focus has been placed on key categories including apparel, baby, toys and health and beauty. All of these areas feature a new look and feel. Within the grocery areas, ranges have been rationalised and more space dedicated to Walmart's private brands. This year the retailer is shifting is capital expenditure plans to focus on remodelling existing stores. Only a small number of new openings are planned.

© IGD 2017 Source: IGD Research Page 16 Marché Adonis 1240 Eglinton Ave W, Mississauga, ON L5V 1N3

Supermarket

Visit for: ethnic food ranges (Mediterranean and Middle East), bakery, prepared foods, food-to-go

In 2011 Metro took a 55% stake in Marche Adonis, a Mediterranean specialist grocer, to enable it to participate in the growth of the ethnic retailing sector in Canada. This was a well established business in the Montreal area and Metro has been able to support the retailer’s continued expansion. It currently trades from 11 stores. Fresh produce is merchandised in large volumes to create impactful displays, mirroring the techniques of more traditional markets. The shawarma is one of the most popular products in store. This is complemented by a range of salads, in-store produced pita breads and other hot food products. Its pita production facility at this store is a unique element, creating a great element of retail theatre.

© IGD 2017 Source: IGD Research Page 17 Retail Analysis Your online guide to global grocery retailers, markets, channels and trends

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© IGD 2017 Source: IGD Research Page 19