In-store shopping still reigns supreme for Canadians: KPMG report

Though they use digital platforms to research merchandise, Canadians remain frustrated when purchasing online because of products not matching descriptions, inconvenient return processes and shipping delays, the report points out.

Product availability and the ability to compare prices ranked high as features that would make Canadians more likely to shop online, the report says. Eighty-six per cent of consumers say they are more likely to choose retailers that effectively manage inventory and minimize out of stock items and eight in 10 feel it’s extremely or very important for retailers to have a reliable stock of products they frequently purchase.

“Regardless of what they sell, businesses need to meet customer expectations for always having certain products in stock. For example, if a customer is stopping by a sporting goods store for some hockey tape, they would expect that to always be in stock, as opposed to a specific size and width of hockey skates which may need to be ordered. Consumers’ buying behaviours are influenced by their expectations of the stores they plan on visiting,” says Mr. Polyakov. “Retailers who can meet this expectation and communicate accurate inventory levels with their customers will get ahead of the competition.”

Katie Bolla, Partner, Customer Practice at KPMG in Canada, says loyalty programs are a great way for retailers to gain insights into customer behaviour and product demand.

“The reason retailers create loyalty programs is to really understand their customer’s buying behaviours and patterns,” says Ms. Bolla. “This allows them to plan their promotional and personalized marketing campaigns, product innovation and operational planning. Our recent survey shows most consumers are price conscious, so designing loyalty programs to better build connections and suitable offers is even more important.”

While nine in 10 consumers say they are a member of a retail loyalty program and 92 per cent agree loyalty programs influence their decision to shop at a particular retailer, nearly 50 per cent are uncomfortable with retailers sharing data about shopping habits to improve inventory management.

This highlights a significant concern among Canadians regarding data privacy with more than 90 per cent saying they are concerned retailers aren’t doing enough to protect their information from cyber criminals and they should be more transparent in how they protect and store customer data.

Despite these worries, poll findings show that consumers still want retailers to use data, especially when it comes to empowering their workforce. Many respondents view technology as a solution with 78 per cent agreeing that their shopping experience would improve if staff were equipped with data-driven tools.

“Our survey found that 90 per cent of consumers return to stores where they’ve received service from knowledgeable staff. To stay competitive, it's critical that retailers improve the interactions between their employees and customers by providing staff with the information they need to succeed,” says Ms. Bolla. “A little technology can go a long way in accomplishing this. Front-line workers who have a tablet integrated with real-time inventory, customer or product data can better assist shoppers with the personalized help they are looking for.”

• 61 per cent of 1,522 Canadians surveyed say they mostly shop at brick-and-mortar stores
• 57 per cent say they are frustrated with the online shopping experience (e.g., either the product is not what was advertised or returning merchandise is inconvenient or costs too much)
• 85 per cent rank price as the top factor that influences their purchasing decisions
• 57 per cent say “hunt for deals (e.g., comparison shopping, do more research)” best describes their shopping behaviour
• 35 per cent say the primary reason they make a purchase in-store is the ability to try on or test products
• 26 per cent say the primary reason they make a purchase in-store is the speed of getting the product (i.e., no shipping)
• 16 per cent say the primary reason they make a purchase in-store is the instant gratification of getting to take the product home immediately
• 86 per cent say they are more likely to choose retailers that effectively manage inventory and minimize stockouts (employees have access to real-time or up-to-date inventory data)
• 79 per cent say it’s extremely or very important that retailers have a reliable stock of products they frequently purchase
• 90 per cent say they are a member of a retail loyalty program
• 92 per cent say loyalty programs are influential in their decision to shop at a particular retailer
• 49 per cent say they are uncomfortable with retailers sharing data about their shopping habits to improve inventory management
• 91 per cent say they are concerned retailers aren’t doing enough to protect their personal and financial information from cyber criminals
• 78 per cent agree that their shopping experience would improve if staff were equipped with data-driven tools, such as inventory management, customer feedback tools, loyalty program information, and digital chat bots
• 90 per cent say they would return to a store where they’ve received exceptional service from knowledgeable staff

KPMG in Canada surveyed 1,522 Canadian adults about their shopping preferences and behaviours from Dec. 27, 2024, to Jan. 10, 2025, on Sago’s AskingCanadians panel, using its Methodify online automated platform. Fifty-five per cent of the respondents are men and 45 per cent are women. The respondents are ages 18 to over 65 and have a household income of $100,000 to $149,000 (19 per cent), $50,000 to $74,999 (17 per cent), $75,000 to $99,999 (16 per cent) or $25,000 to $49,999 (12 per cent). The margin of error is +/- 3.1 percentage points at a confidence level of 95 per cent.