Preference for in-store and online shopping evenly split

Consumers prefer omnichannel experiences post-pandemic.

Reprise Commerce, the specialty ecommerce unit of IPG Mediabrands, surveyed 1,500 Canadians for its latest report on online shopping trends.

It found that shopping preferences are fairly evenly split between online (35%), in-store (34%) and no preference (30%).

But regardless of where the purchase is made, Reprise points out that digital tactics should still be paramount for brands. Online touchpoints like ads and flyers remain key drivers of product discovery and research. Also, 63% of shoppers use search and other online touchpoints as their first source for category and product research, while over half of shoppers research online before making an in-store purchase.

“With a majority of sales being digitally influenced and with omnichannel shopping reaching its peak, brands must shift their strategies towards value generation tactics,” says Emmanuel Lafleur-Velasco, VP and head of ecommerce at Reprise. “While convenience remains a crucial factor in online shopping, there are additional opportunities for brands to capitalize on the latest technology and ecommerce strategies to achieve success in this evolving landscape.”

According to Lafleur-Velasco, brands need to reassess their approaches and develop plans for growth, taking into consideration the impact younger and BIPOC shoppers will have on online sales, given their savviness and adoption of digital channels, which includes social and emerging shopping channels.

Respondents cited no hours of operation (61%), home delivery (61%) and convenience (59%) as the top three advantages for ecommerce. While barriers for online shopping, including long shipping times and product selection, have been reduced, the lack of human assistance is an increasing friction point for online shoppers (up from 19% to 30% year-over-year). The report notes that sellers can leverage social commerce, AR and AI technology to strengthen connections with shoppers and address friction points quickly.

The numbers reveal inventory management is a critical driver of brand loyalty. Despite inventory availability being the top factor impacting consumer satisfaction of retailers (37%), a majority of shoppers still regularly encounter out-of-stock issues both online and in-store. Sellers must prioritize inventory management, especially if their target audiences are within the younger or BIPOC demographics, who are less likely to stay brand loyal if their preferred item is out of stock.

Finally, according to the survey, despite rising prices, close to 40% of Canadians plan to maintain or increase spending on essential CPGs, though 37% plan to seek less expensive products or brands.

Shoppers are more likely to make online purchases during Q4 sales events, with 40% of their total spending done online during this key period (versus 29% at other times of the year). Marketers can maximize their media efforts by creating unique promotional strategies beyond deep discounting, such as personalized feed-based shopping ads that can increase conversion and drive relevancy at scale.