Read LOCO’s new report on the impact of online shopping on local business in Canada. A study on trends in online retail along with surveys of Canadian independent retailers and consumers reveals the following:
- Online shopping is a growing trend in Canada. Sales are expected to double by in the next four years, from $22 Billion in 2014 to $40 Billion by 2019.
- B.C. retailers cite “competition from internet retailers” as one of two top challenges they face (tied for top issue at 64% along with “big competitors receive better pricing & terms”).
- Very few businesses feel they are marketing themselves effectively. The majority of them are spending less than $200/year on advertising.
- 2 out of every 3 dollars spent online by Canadians goes to a U.S. retail website.
- Cross border online shopping reduces the amount of money circulating in the local economy by up to 32%.
- The higher the volume of online purchasing a consumer does, the more likely it is that they purchase with chains versus local businesses. Those whose online purchases make up less than 50% of their overall consumer spending are spending approximately equal amounts with chains as local businesses. However, those spending between 75-99% online shop with chains twice as often as with local businesses.
- Consumers value local. Of Canadian consumers surveyed, 69% valued Canadian ownership as “Most Important” or “Important” when shopping. Over 50% of consumers are seeking locally made products and nearly 50% prefer to buy from companies right in their Province or City.
- Consumers would spend more money online with local businesses if they offered convenient shipping, e-stores and a better consumer experience navigating their online stores.