The retail sector, on a global scale, has been experiencing a profound shift, fueled by technological advancements and changing consumer preferences. In response, retailers are embracing the concept of seamless commerce, aiming to provide shoppers with a uniform experience across various channels, including both physical stores and digital platforms.
According to a new international report by KPMG, Canada has secured the fourth spot among eight countries leading the way in revolutionizing retail to make it more accessible, engaging and convenient for consumers via a seamless integration of digital and physical shopping experiences. In the report, Kostya Polyakov, a partner at KPMG in Canada and the national leader for Consumer and Retail, points out that Canadian retailers have made a concerted and notable effort to bridge the gap between their online platforms and brick-and-mortar stores.
The urgency for a holistic omnichannel strategy has been magnified over the past few years, driven by consumer expectations that have been largely shaped by their interactions with leading U.S. retail giants, which are typically more advanced in digital integration. Despite a pandemic-induced surge in online shopping, a striking finding from KPMG Canada highlights that 67% of Canadian consumers still prefer the tactile and social aspects of in-store shopping over online.
However, the report says Canadian shoppers are interested in and looking for improved online shopping experiences. It outlines a demand for more comprehensive product information, enhanced search functionality, straightforward return policies, direct product inquiries and a more efficient delivery process. Contrarily, American consumers seem to prioritize speed, convenience, and customization in their online shopping experiences, likely due to the broader spectrum of e-commerce solutions available in the U.S. market.
Polyakov underscores a pivotal shift in retail strategy, emphasizing the transition from a focus on the sales channel to prioritizing the customer. Consumers of today expect retailers to meet them on their preferred platforms (whether that’s online through mobile or computer, in-store, or through social media) and to offer a consistent quality of experience. This shift necessitates breaking down data silos to create a unified, seamless consumer journey.
While live social commerce (allowing consumers to interact and make purchases during live broadcasts) has taken off in markets like China and much of Asia, only a small fraction of Canadians currently shop on social platforms. There is, however, an optimistic view with regards to the future of live commerce in Canada, particularly as retailers look to attract younger demographics with formats that are engaging, interactive and offer value.
The KPMG report also identifies key areas where Canadian retailers can improve and innovate. These include aligning the workforce with customer-centric metrics, overcoming the challenges of utilizing data analytics for strategic insights, further adopting digital technologies to enhance customer service and operational efficiency and pushing the envelope in product and service innovation through personalized offerings.