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TORONTO — Canada’s traditional grocery stores continued to lose food market share to Walmart and Costco in 2017, according to a new report that highlights the stiff competition between the country’s biggest food retailers.

Sales of food at traditional grocery and convenience stores were flat last year, while food sales at general merchants — a group that includes Walmart, Costco and Dollarama — were up 15 per cent, according to a new report from Kevin Grier Analysis and Consulting. Overall, retail food sales rose four per cent during the year to $98 billion, Grier noted, citing data from Statistics Canada.

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The news comes after a record year of expansion for Costco in Canada, one that included the debut of its first business centre, which sells bulk food and beverage items and office supplies.

Costco’s success in this country relies in part on its successful and ongoing food expansion, said Grier, a Guelph. Ont.-based food industry analyst.