Canadian Retailer - Summer 2013 - 17

TODAY’S CONSUMER:
WHERE, WHEN AND HOW
THEY WANT IT
Engaging the consumer in today’s retail environment means
optimizing operations to ensure a seamless omnichannel
experience across all channels—meeting their needs and
developing a deeper relationship with them
BY SEAN C. TARRY
THE CANADIAN CONSUMER is ready to purchase online. In are Canadian consumers going for their purfact, if the latest research and statistics concerning mobile and chases? The answer, which likely doesn’t come
e-commerce activity is even remotely accurate, they’re beyond as a surprise to anyone, resides south of the
ready and are increasingly expecting retailers to provide the border. U.S. retailers, in Lee’s estimation, have
platforms and channels that they prefer to shop, research, com- already come to the realization that they need
municate with and experience them through.
to adjust to this new and growing omnichannel
According to ComScore’s 2013 Canada Digital Future in Focus behaviour. And it's reaping benefits for them,
report, the legion of Canadian online shoppers grew in 2012. The at the cost of Canadian businesses that she
number of visits by Canadian shoppers to e-commerce websites in- feels are still very much store-based.
creased by nine per cent over 2011. And the numECONOMIC IMPACT
ber of online transactions increased accordingly,
growing by 17 per cent, which is also reflected in a
In the lingering wake of a double recession, today’s consumer
remains cautious about their spending. They’re careful and cal10 per cent growth in online spending.
culated and are doing far more research about their purchases
Add to this growing movement the fact that 62
than they ever have before. But this, according to Lee, presents
per cent of Canadians own a smartphone—43 per
opportunities for retailers.
cent of whom also own another mobile device,
“The debt to income ratio for consumers continues to have a
tremendous effect on their shopping behaviour,” she explains.
such as a tablet or laptop—and the message under“What we’re seeing is a consumer that has very little disposable
lying these stats becomes a lot clearer for retailers
income, and this means that over time discretionary spending for
across the country, if it wasn’t already crystalized
things like eating out and liquor has been shrinking. This is driving
in their thinking already: consumers are becomflat retail sales. Today’s consumer is extremely price-conscious
and very educated. That means that if a retailer can offer differing increasingly mobile and crave a seamless
entiation or can provide an educational and interactive experiomnichannel experience in which to shop.
ence, in-store and online, they’ll have the opportunity to engage
Jennifer Lee, partner, national omnichannel
with the consumer, appealing to their desire for information and
personalization.”
leader at Deloitte Canada, recognizes the swift
Sales, however, are not flat across all categories. Luxury goods is
consumer shift toward mobile usage and deone category that has not felt the pinch quite as much as others.
sire for an omnichannel experience, and sugLee suggests that this is in part a result of the traditional customer
gests that Canadian retailers who want to play
of luxury goods, as well as those who just can’t help themselves.
in the digital realm need to adjust their oper“You have a portion of people with the higher income—the top 1
per cent—who can afford these items. But there’s also a portion
ations to meet the needs of today’s consumer.
of people, though they may be in debt, who want the latest luxury
“Most consumers today, in almost all seggoods and are willing to spend a huge amount of their income on
ments across the country, are shopping in
those items. Most aspirational consumers are more willing to give
omnichannel format,” she says. “Most are preup lunch for a day than give up their iPhone.”
shopping before they walk into a store and
they’re moving seamlessly between channels—mobile, e-com“U.S. retailers have been investing in systems
merce in-store. I think this new educated consumer, and the way for some time now,” she points out, “They’ve
in which they’re shopping, has really presented a challenge for also been creating an actual omnichannel exmost Canadian retailers vying for their business.”
perience for the consumer and are making sure
It's a challenge that underscores a difficult question which that their pricing and inventories are consistfew people in the industry are willing to examine—if Canadian ent across the channels. E-commerce in Canretailers aren’t providing an omnichannel experience, where ada has a huge amount of potential, but at the

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Canadian Retailer - Summer 2013

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