The best grocery stores and loyalty programs for newcomers in Canada

For newcomers to Canada looking for ways to save some money, finding affordable grocery stores and loyalty programs are helpful ways to cut costs.

In the second edition of its Cracking the Newcomer Code report, Canadian market research company Leger shared several insights about the experiences, challenges, and issues faced by newcomers, as well as their retail and spending habits.

Leger's online survey was conducted between September 23 and October 28, 2024, among 2,098 newcomers who arrived in Canada over the past 10 years.

The report notes that affordability continues to be a key issue for many new Canadians. According to Leger, 84 per cent of respondents felt Canada was either "more" or "significantly more" expensive than expected.

Affordability and diverse products are two key factors as to where newcomers choose to shop, added the report.

"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," stated Lisa Covens, vice president of public affairs at Leger.

"Retailers have a unique opportunity to support newcomers while building stronger, more inclusive communities. Retailers play a key role in helping newcomers feel at home."

Leger

The report found that when it comes to grocery stores, the majority of new Canadians prefer shopping at Walmart (24 per cent), Costco (20 per cent), No Frills (12 per cent) and Real Canadian Superstore (11 per cent). For these questions, a sample size of n=1045 was used.

For newcomers, the most important factor when choosing a grocery retailer was price. Over three-quarters (78 per cent) of respondents said that cost was key when shopping for food, followed by discounts and promotions (57 per cent).

Over half (54 per cent) of newcomers said grocery stores that offer loyalty programs would attract more new immigrants.

Leger

As for the most popular loyalty or rewards programs for newcomers, the Loblaw-run PC Optimum took the top spot, with 62 per cent of respondents saying they were members. Costco came second (45 per cent), followed by Scene+ (44 per cent).

Leger found that nearly three-quarters of newcomers say they would likely switch retailers for better loyalty rewards.

These insights are consistent with Rewards Canada's recent ranking of Canada's top loyalty programs, which was conducted this fall. Its Canada's Choice 2024 rankings allowed voters to choose their favourite credit card and loyalty programs across 12 categories.