Canadian grocery retailers are reporting mixed results in their e-commerce operations five years after COVID-19 dramatically accelerated digital shopping adoption, according to industry executives and analysts.

Loblaw, Canada's largest grocer, has seen e-commerce revenue grow from less than $1 billion pre-pandemic to $3.9 billion in 2024, with delivery now accounting for approximately half of online sales [1]. The company reports current online sales have surpassed peak COVID-19 levels.

Statistics Canada data shows the evolution of grocery e-commerce:

2017: 0.5% of total food/beverage sales2019: 0.7% of total sales2020: 1.7% of total sales2021: 2.1% of total sales

However, some retailers are seeing slower growth than anticipated. Empire, owner of Sobeys, recently paused plans for a Vancouver fulfillment center due to lower-than-expected market expansion [1]. 'While the Canadian market has not expanded as rapidly as initially predicted compared to other global markets, we remain optimistic,' stated Mohit Grover, Empire's SVP of e-commerce on March 10, 2025.

Three main e-commerce models have emerged, according to Metro's chief marketing officer Alain Tadros:

Click-and-collect: Online ordering with store pickupIn-house delivery: Grocer-managed fulfillment and deliveryThird-party delivery: Services like UberEats handling shopping and delivery

Industry analyst Lisa Hutcheson of J.C. Williams Group notes that while usage has declined from pandemic peaks, future growth is expected, particularly among younger consumers. The focus is shifting toward an integrated approach combining digital convenience with traditional in-store shopping experiences [1].