Are you ready for the holidays?
That’s code for ‘Have you bought everything yet’? Tree, cards, wrapping, gifts, food and so on?
Or do you still plan, as do more than 60 per cent of Canadian consumers, to head to the store?
That’s right – the store!
More than 60 per cent of us are planning in-store purchases this year, especially for gift ideas, according to a recent survey.
In-store shopping is back, according to retail analysts, and that’s good for both shoppers, retailers and their employees. Yes, online shopping and e-commerce activities are still big, but in-person, in-store shopping is bigger, particularly after COVID but also considering the changing retail landscape of what consumers now want, what brands now need, and a growing environmental concern about certain aspects of online shopping.
According to U.S. business research and advisory firm Forrester, a whopping 72 per cent of retail sales will still happen in-store in the next five years.
Although industry surveys sometimes use the tech term “an interactive shopping experience”, they are really referring to how valuable it can be to speak face-to-face with a “knowledgeable and helpful sales associate”. The value of person-to-person interaction at the point of sale should not be underestimated.
And good physical retailers understand the possibilities for brand growth through in-person shopping and a more personalized experience. Whether it’s trying on clothing or sitting in a chair or touching all the buttons on a new smartphone, the tactile enjoyment of shopping is also a compelling factor for many folks to make a purchase. Consumers value the ability to touch-and-feel.
Many savvy customers are now seeing brick-and-mortar shopping as more environmentally friendly, too, in terms of lessening the waste produced by extra packing of a fragile shipped product, the unnecessary packaging and paperwork of courier deliveries, not to mention the transportation resources being consumed by all those deliveries (and returns).
More than three-quarters of us say we plan to maintain or increase our holiday spending this year compared to last.
Online shopping may be convenient for some, but a nuisance for others. E-commerce purchased products are returned at a 20 to 30 per cent higher rate than in-store purchases, making the experience less than effective. Businesses need to figure out how handle a growing problem that’s a big expense and that is coloured by sustainability and security issues, and some retailers are looking to impose restocking or added delivery fees as one way to fight the rising costs of returns.
And in response, consumers move from online to in-store shopping, with 40 per cent of consumers already expressing their intention to increase in-person shopping because delivery costs are too high, according to analysis from PwC.
Even as retailers keep up their online posture, many will encourage in-store pick-up of online orders as a way also to increase foot traffic and build personalized shopping experiences.
Despite the economic uncertainties and shopping challenges we all face, Canadian consumers are into the 2023 holiday spirit with resilience – and money!
More than three-quarters of us say we plan to maintain or increase our holiday spending this year compared to last, according to survey results in this year’s edition of the Canadian holiday outlook survey conducted by PwC Canada. Gen X and Gen Z are expected to lead the seasonal spending surge, upping their spend by 29 and 26 per cent, respectively.
Good physical retailers understand the possibilities for brand growth through in-person shopping and a more personalized experience.
PwC Canada also identified the shopping surge in stores, reporting that 63 per cent of its survey respondents were planning in-store purchases this year, especially for gift ideas.
“Canadians are approaching the holiday season with optimism. The survey reveals shifting generational spending patterns. These changes reflect the resilience and adaptability of Canadian consumers in navigating evolving economic landscapes,” Myles Gooding said when the report was released. He’s the National Consumer Markets Leader & Global Consumer Markets Advisory Leader at PwC Canada.
The evolving landscape that retail analysts have identified means some businesses need to rejuvenate or reinvent themselves by delivering personalized, tailor-made shopping experiences in-store, possibly augmented by embracing innovative technology. Shoppers of all ages are looking for ways to get even better product recommendations; talking to knowledgeable staff, person-to-person, in-store seems to work – at any time of year.
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