Canadian Retailer - Summer 2013 - 18

CONSUMER TRENDS

moment Canadian consumers are shopping quite a bit on U.S. convenient pick up locations, you’ll remain enretail online sites. As a result, a lot of sales are leaking down to gaged with the customer and keep them coming
the U.S.”
back to you, online and in-store.”
The gap in omnichannel capability and optimization beLee also believes that the efforts of Cantween Canadian retailers and retailers from the U.S. and other adian retailers to equip their sales associates
parts of the world is an obvious concern for merchants across to be as educated about their own products as
the country. But, what’s more concerning, according to Lee, is the consumer who’s walking into the store will
the cause for the disparity, which she says stems from know- also give them a leg up on their competitors.
ledge and mindset at the top.
“A consumer walks in having pre-shopped,
“The leadership within the Canadian organization’s execu- having pre-selected most of the items that
tive teams have typically grown up within the physical retail they want to buy, and they also have more
store,” she says. “The executive level requires a deep under- product specs online than the sales associate
standing of the consumer’s path to purchase today. The con- has in store. So, if the sales associate possesses
sumer has changed, causing a generational divide. The systems that same level of knowledge as the customer,
within most retailers are also quite antiquated. The ability to you’ll reduce the risk of that customer walking
exchange information between systems, for example inventory out of the store and buying on another retaillevels or pricing, so it’s consistent across channels is a chal- er’s website. You’ll also better position yourlenge. So, there’s an infrastructure issue.”
self to mitigate their dreaded showrooming
One way the mindset at the top can be influenced, Lee sug- behaviour, by engaging with them in convergests, is by changing their view of the consumer, which involves sation about your store, product, culture and
consolidating departments within the organization.
everything else.”
“When you look at almost any retailer in the
country, there’s an e-commerce team, a retail
according to the comscore report, “consumers have already
stores team and a mobile team,” she explains.
adopted multiple platforms and devices—2013 is the year [canadian] businesses need to follow if they desire a unified, platform“If you consolidate the PNL into an omnichanagnostic view of consumer behavior.”
nel PNL, executives will look at the business
What Canadian Smartphone users are doing in stores:
very differently, and their behaviour begins to
6% found coupons or deals
change. There’s no more conflict—everyone be6% checked product availability
gins to recognize that the customer travels be8% researched product features
tween all of the different channels, and that it’s
10% scanned a product barcode
okay. That’s where it has to start. A lot of people
10% compared product prices
debate which channel owns the customer. It’s
10% found store location
18% sent picture of product to family/friends
very hard today to succeed with one view of the
26% texted or called friends/family about a product
customer, regardless of the channel.”
30% took picture of a product
Another reason often cited to explain the
Canadian industry's lack of omnichannel readiness is the notion that delivery promises are harder to meet in
Aside from a knowledgeable associate, howCanada than they are in the U.S. or Europe simply because of ever, what else is a retailer to do about showthe expansive geography of the country. This, insists Lee, does rooming? Price-matching, for most, doesn’t
not justify the lack of an e-commerce initiative.
seem like a viable or attractive solution as the
“Amazon already has the functionality of same day shipping value of the product is decreased at the whim
in San Francisco where they’re piloting right now,” she points of the consumer. Not to mention the fact that
out. “It’s not inconceivable to achieve the same thing in Toron- there isn’t a retailer today that can take on
to, Montreal, Vancouver, Halifax or anywhere else. If you go by (place gargantuan online retailer here) becity and you cover certain trade areas, you can deliver. It’s all cause they have such thin margins that profabout how you ensure the volume to a particular location. A lot itability would never be a viability. But that
of retailers are now starting to look at how they can deliver and traffic, once in your store, has to be converted
create sort of a milk route to maximize delivery of product.”
somehow. To combat showrooming, Lee sugRetailers are also starting to develop pick up formats that gests that the smart retailers are providing difhelp augment delivery challenges and provide as many options ferentiation in the product itself.
as possible for the customer.
“One assumption in showrooming is that you
“The retailer that figures this model out is going to win in the have the exact same product across the board,”
marketplace,” Lee asserts. “If you can allow your customer to she explains. “A lot of savvy retailers today are
purchase online, order in the store for home delivery, have the telling their vendors that they won’t be carrying
product delivered to a location close to them, or provide other the same product as their competitors. They’ve

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