The Panier Bleu, launched in April 2020, was supposed to be the local response to Amazon's dominance, providing small and medium-sized businesses (SMEs) in Quebec with a platform to sell their local products online. However, despite significant investments from key players such as Investissement Québec, Desjardins, and the Fonds FTQ, the project failed to gain the expected momentum and stimulate local purchasing. A reminder to the government showing that money doesn't guarantee the success of a project and it must be spent wisely.

Does the solution for retail necessarily come from outside?

Case of the Panier Bleu

By showcasing Amazon and announcing the possible closure of the Panier Bleu, the choice of "ease" seems to have been made: turning to the large company that monopolizes all the margins and is established.

However, the Panier Bleu could adopt an approach similar to that of a startup in the early stages: iterate, pivot rather than give up. Innovative solutions would need to be found to pivot the platform. The task is not simple, but it is possible given the talent present in Quebec. The products are digitized, the merchants are present, the infrastructure has been developed, and promotion has been done with entrepreneurs. Possible solutions could be:

• Offering merchants the opportunity to sell only their unsold items on the Panier Bleu at unbeatable prices to attract consumers and reduce waste.

• Reducing the number of merchants and focusing solely on a segment in order to rebuild on a solid foundation.

• Transforming the Panier Bleu into a back-office platform offering business intelligence data to merchants.

• Reverting back and creating a community around the Panier Bleu by turning it into a directory of references for the best merchants in Quebec (for example: the Michelin guide for merchants).

• Focusing solely on distributors and offering an order placement interface for merchants on the Panier Bleu.

• Working alongside companies operating in the sector such as OneTrip to offer alternative solutions to businesses.

The head-on battle with the giant Amazon is difficult, but being smaller, the Panier Bleu enjoys a potential agility that Amazon does not have. Moreover, the closure of this platform sends a negative signal to independent businesses, which will feel even more neglected.

Case of grocery chains

Seeking foreign players to stimulate competition may seem like a good idea initially. However, we have seen in the past with Target that integration into the Canadian market can be a failure and lead to millions of dollars being spent. Furthermore, numerous banners of independent grocery stores are already present in Canada. Why not invest in modernizing these local independent players so that they can compete with the existing large chains? This modernization will have a beneficial effect not only on independent chains by making them more competitive, on local companies developing tools for modernizing businesses, but also on consumers who will have more affordable prices and a more diversified range of products.

This will create internal champions in the technological sector as well as in the food sector within 5 to 10 years, who can shake up the status quo. However, the question to ask is whether this investment horizon is sufficient to be a priority for a government with a certain term of office.

It is important for local independent businesses to quickly adapt to the new market realities and explore these different alternatives. By diversifying their online presence and playing on proximity with their customers, they can continue to thrive despite the closure of the Panier Bleu.

Our opinion

At OneTrip, we support independent businesses. Wrongly, people often think that these are "small" businesses. However, these establishments generate millions of dollars annually and provide livelihoods for many people. We firmly believe that by providing the appropriate technological tools to these SMEs, they can compete with large chains up to a certain point, while offering a more diverse range of products to consumers. It is imperative not to sacrifice the interests of local businesses to the benefit of international giants, which could further compromise the local economy. On the contrary, sustainable solutions should be worked on that promote business growth and strengthen our existing ecosystem. Ultimately, do we want to live in a world dominated by a cartel of large chains? What do you think?