61 Percent of Canadian Shoppers Still Prefer In-store Shopping: Survey

Shoppers line up at stores at a Toronto mall on Dec. 31, 2021. The Canadian Press/Chris Young

Despite some major retailers going under, a majority of Canadians say they still prefer shopping in-store rather than online, according to a new survey.

The survey, conducted by KPMG, asked Canadians about their retail shopping habits and preferences.

It comes amid the closure or downsizing of a number of retail businesses, such as The Bay, which is closing most of its locations and navigating millions in debt. The Hudson Bay Company applied for creditor protection in March, and is looking at auctioning off some of its most valuable assets.

The survey found 61 percent said they prefer to shop at brick and mortar stores.

It also found consumers shop more online for electronics and clothing, but when it comes to auto supplies, health products, and groceries, shoppers prefer to find them in-store. Just 10 percent of Canadians said they shop online for groceries.

“While we do expect e-commerce popularity to grow, we’re seeing a shift in retail trends post pandemic where what’s old is new again,” said Kostya Polyakov, partner and national consumer and retail leader at KPMG in Canada.

A majority of survey participants (85 percent) said price was the biggest factor in making a purchase.

More than half of Canadians (57 percent) said that finding a discount was more likely to motivate them to buy than brand loyalty.

Polyakov said that not all trends will be permanent in the industry.

“The recent retail failures underscore the importance of knowing the market and your customers,” Polyakov said. 

Customers have been using digital platforms to compare prices and look for a deal before purchasing, according to the survey.

“They hunt for the best prices online before deciding to purchase but still want to touch and feel the merchandise,” Polyakov said.

Some of the main reasons shoppers said they purchase in-store include the ability to try on or test products (35 percent), the speed of getting the item (26 percent), and the instant gratification of taking the item home immediately (16 percent).

Survey respondents said some of the challenges of buying online include products not matching descriptions, inconvenient return processes, and shipping delays.

About 90 percent of Canadians said they belonged to a retail loyalty program, and 92 percent said these programs influence where they shop.

Respondents said they were concerned over inventory management of retailers, with 79 percent of those surveyed saying it’s important for retailers to reliably stock items they frequently purchase. Eighty-six percent said they were more likely to choose retailers that took efforts to reduce stockouts.

The results were based on a survey of 1,522 Canadians that was conducted from Dec 27, 2024, to Jan. 10.