Commercial Real Estate: Online still only a small part of holiday shopping experience
Credit to Author: Hugh Dawson| Date: Tue, 03 Dec 2019 22:00:27 +0000
Canadians’ shopping habits are changing, but the revolutionary convenience of online and high-tech retail won’t keep shoppers out of physical stores this Christmas shopping season, a new report suggests.
Two-thirds of Canadian shoppers plan to visit stores during this holiday season, according to the results of a recent poll conducted by commercial property brokerage JLL.
The survey found that 57 per cent of respondents plan to shop from online retailers, while more than 30 per cent said they would be shopping online and in bricks-and-mortar stores this holiday season.
JLL surveyed 1,000 Canadian shoppers from different provinces and territories, income levels, generations and genders about their holiday season shopping patterns. The survey was conducted in late September and asked single-answer, open-ended, and check-all-that-apply questions.
“The biggest takeaway is that Canadian consumers are leveraging both physical and online stores,” said Heli Brecailo, a retail research manager with JLL. “The penetration of smartphones in Canada is really high, the internet penetration rate is really high. It’s not surprising that Canadians are shopping online.”
But 10 years ago, many industry insiders and experts argued that online retail was going to force physical retailers toward extinction.
That hasn’t happened, Brecailo said. “The right perspective is that (online and in-store retail) are complimentary.”
Online retail shouldn’t be seen as a threat to physical retailers if e-commerce is handled properly, he said. “It’s just another component of the shopping process.”
The survey did find that 90 per cent of shoppers said they would use a mobile phone for shopping.
“Interestingly, most will not use it to actually order,” Brecailo said. “Rather, they’ll read product reviews, check inventory, get gift ideas and find coupons.”
It’s becoming clear that shoppers want a seamless experience with retailers whether they are shopping on their phone or computer, or in the actual store.
“It’s becoming increasingly blurry, the line between online and offline,” Brecailo said. “Retailers have realized that ‘buy online, pick up in store’ (BOPIS) service is an excellent formula for increasing sales. Shoppers go to stores to pick up goods they already purchased online, but then they buy more at the store.”
He said there is a “whole science developing around that” as the BOPIS process requires retailers to develop and manage pick-up space in the store, as well as dedicated parking lots, staff and inventory management.
There is also a known “halo effect”, in which retailers that open a physical store increase brand awareness and experience more web traffic and online sales in the local area.
“Digital natives like Casper, Warby Parker, and Frank and Oak realized this some time ago and increased their physical presence,” he said. “Aligning physical with online is a win-win.”