O Canada, Land of Retail Opportunity
With fewer chains and little competition from online shopping, Canada represents a strong expansion opportunity for U.S. retailers according to WSL/Strategic Retail, which recently released How Canada Shops. The research study found that 64 percent of Canadians can still afford to shop beyond the basics, versus half of Americans, who say they cannot.
“As U.S. companies struggle with sales and profit growth in a stalled global economy, and as the Internet continues to steal share of shoppers from the stores, the opportunity to expand into Canada has become very appealing,” says Wendy Liebmann, CEO of WSL/Strategic Retail. “While each of the major retail categories exist, Costco is the only Club; Walmart faces off against a weak Zellers (at least until Target arrives in 2013); and The Bay and Sears are the only mid-tier Department stores. The added bonus is that few Canadians shop Amazon.”
“While there is significant opportunity, we have also found important differences in the way Canadians think and shop, versus Americans, which will require U.S. retailers to consider new strategies and approaches when entering this market,” continues Candace Corlett, president of WSL/Strategic Retail. “Interestingly, we’ve found that Canadians are less passionate about shopping, and their Internet activity is well below that of Americans.”
Canadian shoppers expect everyday low prices and will use coupons when available, but they don’t proactively seek them out as much as U.S. shoppers, the study revealed. Specific insights include:
- 55 percent of Canadian women regularly use coupons to reduce costs, whereas 68 percent of American women utilize coupons when shopping
- 50 percent of Canadian women search the Internet for promotions, versus 61 percent of American women shoppers
- 57 percent of Canadian women pick up circulars in-store, versus 71 percent of American women
Regarding technology, adaptation among Canadian women is significantly lower when compared to American women, especially as it pertains to online shopping. Specific findings include:
- 50 percent of Canadian women say they shop online, as opposed to 75 percent of American women
- 31 percent of Canadian women shoppers visit retailer and manufacturer websites, versus 50 percent of American women shoppers
- Only 26 percent of Canadians are able to download apps onto their mobile phones, compared to nearly half of Americans who have that ability.
Although Canada did not experience the global recession as the U.S. did, they are still as cautious about spending as Americans. When they do get extra money:
- Only 15 percent go shopping
- 33 percent pay down credit card debt
- 25 percent save or invest
The How Canada Shops study was conducted as an online survey between May 3-14, 2012, among adult shoppers ages 18-70, with household incomes of $15,000 and above.