When the pandemic forced people to stay home, Lufa’s business of course boomed. The company is a pioneer in commercial urban agriculture in Quebec, but it also allows its subscribers to do their complete grocery shopping online thanks to its partnerships with local producers and distributors who offer cheese, detergent for clothes and some wine.

Lufa was therefore on the front line to meet the needs of consumers stuck at home, who were hungry for local products and a well-stocked discretionary budget: the value of orders went from simple to doubling at the start of the pandemic, says the founder of Lufa, Mohamed Hage.

This was good because the company’s expansion plans already included the development of a new distribution center in former Sears premises in Saint-Laurent, as well as the addition of an indoor farm and from a greenhouse on the roof, at the same address.

That’s not all: Lufa will inaugurate another greenhouse next spring on the roof of a Walmart, at the Central Market in Montreal.

Mohamed Hage makes no secret of it: 2022 has been very difficult.

The number of baskets Lufa fills each week has remained relatively stable at around 30,000, but there has been a decline in the average order value.

Lufa’s hypothesis: its customers shop elsewhere for certain products offered in its market. For example, tomato lovers remain loyal – it’s impossible to find fresher tomatoes all year round, argues Mohamed Hage, because the customer receives them at home a few hours after they have been harvested. On the other hand, for butter or flour, some are tempted to turn to brands that display low prices.

To attract this customer base, Lufa has lowered the prices of many products and displays this very clearly in its virtual market.

These adjustments were possible due to an increase in efficiency – losses were reduced by 1%. There has also been a reduction in margins on certain products, for suppliers and for Lufa. Even if it means having deficit months. “A few years of break even is not the end of the world,” says Mohamed Hage, who talks about Lufa with a very long-term vision. “The important thing is the next 50 years,” he says.

Lufa has also added formats that allow discounts – the family format was not common in the market before, but now finds its place. An example: by purchasing two Boston lettuces, the customer saves around 30%.

There were also gains in agricultural production. “We have been improving as a producer for 12 years,” says Lufa’s communications director, Yourianne Plante. Producing a tomato in 2023 costs us less than in 2011.”

The price of certain products has also simply fallen, after reaching peaks in 2021-2022, particularly in organic foods.

If the company could expect a decrease in post-pandemic enthusiasm, inflation and the changes in consumer behavior that this imposes were less predictable.

Especially since Lufa was experiencing sustained growth since its founding – around 30% to 40% per year, Hage says. The undertow hit hard in this group of “optimists.”

The company also has to deal with traditional grocery stores which have also developed a better delivery service – we didn’t come across any trucks. on the road in 2020.

To attract new customers, Lufa is launching its very first advertising campaign. It will be essentially virtual, with the exception of a billboard.

“We never needed to do an advertising campaign,” says Yourianne Plante. We were lucky. Word of mouth and events did the trick. Now we are reaching a point where we have to speak to the masses. We want to pick up Mr. and Mrs. Everybody. From Quebec to Gatineau. Our delivery territory. »

The advertising campaign praises the value for money and Lufa wants to send the message that its prices in comparable categories, organic, for example, are competitive.

“We don’t want to be a service for the rich. We want to serve everyone,” says Mohamed Hage whose goal is to bring Lufa back to 40% annual growth. An ambitious goal.

Founded: 2009, by Mohamed Hage

The first greenhouse was inaugurated in 2011 on a roof in the Ahuntsic district.

Number of greenhouses: four, which total a production area of ​​more than 300,000 square feet, and an indoor farm, in Saint-Laurent

Number of subscribers: 62,336

Lufa will sow for the first time on March 7, 2024 in its new greenhouse at the Marché central de Montréal, for production two months later.

The company wants to increase its production by 10% to 20% from 2024.