Canadian consumers still opting for in-store shopping, says KPMG report

Despite the rise of e-commerce, 61% of Canadian say they mostly shop at brick-and-mortar stores, according to a recent KPMG Canada report. The consulting firm surveyed 1,522 Canadians in December and January.

The type of product influences where consumers shop, with most respondents preferring online stores for electronics and clothing and preferring physical stores for auto supplies, health products, and groceries.

Thirty-five percent of Canadians say the top reason to make a purchase in-store is to try on or test products.

Canadians also like a deal, with 57% saying a good price is a much stronger purchasing motivator than brand loyalty. Consumers are also using digital platforms to compare prices across most retail categories – including groceries, clothing, and home improvement.

“Our survey found 85% of Canadians identified price as the number one factor that influences their buying decisions,” said Kostya Polyakov, national consumer and retail leader at KPMG Canada. They hunt for the best prices online before deciding to purchase but still want to touch and feel the merchandise. This is why it’s essential for retailers to take an omnichannel approach so they can connect with consumers no matter where and when they want to shop.”

Though e-commerce share will continue to grow, 57% of respondents say they are frustrated with the online shopping experience – including return hassles and misrepresented products.

Moreover, eighty-six percent of Canadians say they are more likely to choose retailers that effectively manage inventory and minimize out-of-stock items.

“Regardless of what they sell, businesses need to meet customer expectations for always having certain products in stock,” Polyakov said. “Retailers who can meet this expectation and communicate accurate inventory levels with their customers will get ahead of the competition.”

The report says retail loyalty programs are one good avenue to gain additional insight into consumer behaviour and product demand.

Ninety percent of Canadians say they are part of a loyalty program and 92% say loyalty programs influence their decision to shop at a particular retailer.

However, more than 90% of respondents are worried retailers aren’t doing enough to protect their information and should be more transparent in how they protect and store data.