TORONTO, May 6, 2013 – According to research from global information company The NPD Group, approximately 4 percent of all Canadian transactions were made online, up 0.5 percent from 2011.
The findings, which come from NPD’s Shopping Activity Service, looks across retail categories and examines consumers’ attitudes towards shopping. NPD reports that the average Canadian household made approximately seven purchases online in 2012, versus the 156 trips made to traditional brick & mortar stores (about 13 per month, or 3-4 times per week.). This is in sharp contrast to the United States, with 11 percent of retail transactions made online, and whose average household made 15 purchases online and 119 trips to brick & mortar stores over the same time period.
“There are several reasons why Canadians prefer visiting a retailer over shopping online, including accessibility, shipping charges and the lack of financial incentives with online purchases,” said Laura Warren, executive director at The NPD Group. “That said, interest in shopping online is growing. To remain competitive in the space, Canadian retailers must diversify and provide complementary ‘brick and click’ options for their shoppers. This strategy will allow retailers to provide a range of assortment options, even if they aren’t able to offer them in store.”
The categories that are contributing the most to online growth in Canada include apparel, consumer electronics, toys, footwear, fashion accessories, and health & beauty. Fashion accessories and apparel are the largest contributors, with growth of 28 percent and 16 percent, respectively.
Methodology and Shopping Activity Service summary:
Shopping Activity Services is a consumer dataset captured from online surveys that are fielded to NPD’s Online Panel. Shopping Activity collects 28,000+ responses per month from a demographically representative sample of persons 18 and older. Surveys are e-mailed on a daily basis, capturing past 7-day shopping behaviour. Dataset is representative of more than 600,000 retail transactions. The Shopping Activity Service has been collecting purchase information for the past 3 years, which allows for dynamic trend insights.
The NPD Group’s Shopping Activity Service provides retailers and manufacturers with the information needed to better understand market growth, merchandising and cross-promotion opportunities, including consumer shopping preferences by category (e.g., visit, conversion and average spend), and retailer market share. Information is available for the total store, including 20 macro-categories ranging from apparel to consumer electronics to groceries.