Despite the boom in online shopping during the pandemic, most Canadians are still heading to physical stores — and they’re not shy about what they expect from retailers.
A new report from KPMG in Canada showed that brick-and-mortar retail is far from dead. In fact, 61 per cent of Canadians say they mostly shop in-store, even as they use digital platforms to hunt for deals and compare prices.
“While we do expect e-commerce popularity to grow, we’re seeing a shift in retail trends post-pandemic where what’s old is new again,” said Kostya Polyakov, partner and national consumer and retail leader at KPMG in Canada. “But not all trends will be permanent across the industry.”
The report, based on a survey of 1,522 Canadians, found that price is the top factor influencing purchasing decisions, with 85 per cent of respondents ranking it number one. More than half (57 per cent) say they’re motivated more by discounts than brand loyalty and that they actively research and compare prices before buying.
Why Canadians still shop in-store
While online shopping is convenient, many Canadians still prefer the in-person experience. About 35 per cent say the ability to try on or test products is the main reason they shop in-store. Another 26 per cent cite the speed of getting the product without waiting for shipping, and 16 per cent say they simply enjoy the instant gratification of taking their purchase home right away.
Still, online shopping isn’t going away — but it needs to improve. More than half of Canadians (57 per cent) say they’re frustrated with the online experience, pointing to issues like inaccurate product descriptions, difficult return processes and shipping delays.
Inventory and loyalty matter
Canadians are clear about what would make them more likely to shop online: Better product availability and accurate inventory — something distributors in the automotive aftermarket have been clamouring for from their suppliers. Most (86 per cent) say they’re more likely to shop with retailers who manage stock well and avoid out-of-stock items. And 79 per cent say it’s extremely or very important that retailers always have the products they frequently buy.
Loyalty programs also play a big role. Nine in 10 Canadians are members of at least one retail loyalty program, and 92 per cent say these programs influence where they shop. But there’s a catch — nearly half (49 per cent) are uncomfortable with retailers sharing their shopping data to improve inventory management.
Data privacy and tech expectations
Privacy remains a major concern. A whopping 91 per cent of Canadians say they’re worried retailers aren’t doing enough to protect their personal and financial information from cyber threats. At the same time, many still want retailers to use data — especially to improve service.
About 78 per cent of respondents say their shopping experience would improve if staff had access to data-driven tools like real-time inventory, customer feedback and loyalty program info. And 90 per cent say they’re more likely to return to a store where they received great service from knowledgeable staff.
“Our survey found that 90 per cent of consumers return to stores where they’ve received service from knowledgeable staff,” said Katie Bolla, partner in the customer practice at KPMG in Canada. “A little technology can go a long way in accomplishing this.”
Image credit: Depositphotos.com
Leave a Reply