Canadian Retailer - Store 2013 - 8

RETAIL CURRENTS

REPORT
ONLINE RETAIL SALES TO INCREASE SIGNIFICANTLY IN CANADA BY 2018

According to new data gathered and developed by Forrester Research, online sales in Canada will account
for eight per cent of overall retail within the next ﬁve years. This latest research demonstrates the viability of
e-commerce in Canada, the Canadian consumers’ willingness to shop and purchase online and the work that
Canadian retailers need to do to make their offering as seamless and appealing as possible moving forward.

$33.8 Billion
It’s predicted that online spending in Canada will reach
$33.8-billion by 2018. It’s projected that $20.6-billion will be
spent on Canadian e-commerce sites this year.

$1,130

Canadian consumers spend an average of $1,130 online per
year. This is compared with $1,483 in the U.S.

+259%
Forrester recently compared the cost of shipping a six-pound
box from Toronto to Vancouver, a distance of 4,370 km, using
Canada Post’s Xpresspost service against shipping the same
parcel from New York to Los Angeles, a distance of 4,443 km,
using the U.S. Postal Service’s priority mail service. The U.S.
shipment cost US$11.30; the Canadian shipment cost $40.63.

Respondents to Forrester’s
study indicate that more than
two in three Canadians shop
at international websites as
a direct result of prohibitive
shipping costs.

40%

5.7%
68%

Within the next five years, online
spending in Canada will account for 8%
of overall retail in the country. This, however, could be contingent on Canadians’
perception of longstanding hurdles such
as expensive shipping costs.
A huge number of Canadians surveyed
indicate that they have purchased a product or a service from Amazon in the past
three months. This makes the company
the most popular online retailer in Canada,
followed by eBay, iTunes, Best Buy/Future
Shop, Chapters/Indigo and Sears Canada.
Canadian retail e-commerce performance continues to lag behind that of its
competitors. Online sales in the country
currently account for 5.7% of overall
retail spending. This is compared to 8.4%
in the U.S.
A vast majority of Canadian consumers
surveyed indicate that there are
definite reasons for the slower growth
of e-commerce in the Canadian market.
68% stated that prohibitive shipping
costs are the primary reason for the
underperformance in the country.

RESEARCH
FEMALE CONSUMERS USING SOCIAL MEDIA SITES TO INFORM PURCHASE DECISIONS

According to social media intelligence company, NetBase, women shopping for fashion confer with social
media sites as their number one reference to inform purchasing decisions, inﬂuencing their buying behaviour.

28%

62%

Percentage of respondents
who strongly agree with
the statement, “Fashion
and beauty are extremely
important to me.”

Before making a purchase in
at least one product category,
most female shoppers will
consult message boards or
blogs for inspiration to inform
their purchase decision.

15%

27%

Percentage of respondents
who strongly agree with the
statement, “The brands and
products my friends use
influence my own purchase
decisions.”
More than a quarter of
female shoppers look to Pinterest for inspiration. This
demonstrates the promise
of visual marketing.

canadian retailer | store 2013 | www.retailcouncil.org/cdnretailer

72%

Women are more likely to
have Facebook profiles over
all other social networks.
However, they often look to
fashion blogs and message
boards most for inspiration.
Instagram inspires decisions in at least one fashion
category for 42% of women
in the 18-29 age group.

42%

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Canadian Retailer - Store 2013

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