Despite extreme concerns about personal finances, Canadian consumers are still spending and placing value on enhanced digital and in-person retail experiences

• 47% are either very or extremely concerned about their personal finances
• 70% are cutting back on non-essential purchases in response
• 73% visit physical stores at least monthly, with 23% of consumers saying they frequently stand in long lineups and notice stores feel busier
• 42% of Canadian consumers shop on their phones at least monthly

TORONTO, March 9, 2023 /CNW/ - While rising prices, a potential recession and uncertainty are on the minds and pockets of Canadians, shoppers are still spending. In late 2022, PwC surveyed more than 500 Canadian respondents from across the nation. The survey focused on understanding shopping habits, spending intentions, friction points and what they value most when interacting with brands.

"With consumers' evolving expectations and a desire for an enhanced omni-channel experience, Canadian retailers have an opportunity to build new avenues for meeting consumers needs and differentiating their brand by creating frictionless and memorable experiences," says Myles Gooding, National Consumer Markets Leader and Global Consumer Markets Advisory Leader, PwC Canada. "It is imperative for retailers to transform and capture a share of in-person and digital experiences. In order to be successful, retailers must reimagine how consumers use technology across multiple channels and effectively interact with their brand."

Creating in-person experiences that consumers will value

As in-store shopping habits solidify (73% visiting physical stores at least monthly), Canadian consumers say self-service technologies and helpful staff can further enhance their retail experiences. With these human-led and tech-powered channels adopted, it effectively provides more time for staff to focus on higher-value activities that enhance the in-store experience. More than half of the respondents (52%) say knowledgeable and helpful sales associates are an appealing part of in-store shopping.

Self-service checkouts in particular stand out to Canadian consumers. Nearly half (48%) say they're an attractive feature of in-store shopping. Further proving that Canadian consumers have high standards, expecting fast and efficient service, and prioritize meaningful and trustworthy interactions.

Addressing supply chain pains

Even though many Canadian consumers plan to scale back their non-essential purchases, retailers and consumer goods companies have opportunities to attract new customers. One in five Canadian consumers say they expect to increase their spending over the next six months with retailers that provide an efficient delivery service. Supply chain issues can unfortunately threaten established relationships between brands and their customers. These supply chain challenges, albeit improved from last year, are an opportunity for companies to mitigate and create efficiencies with their supplier and distribution networks. In PwC's recent CEO Survey, 49% of Canadian consumer markets CEOs told us they plan to adjust their company's supply chains in 2023.

Businesses that successfully implement data, analytics and automation capabilities into their supply and distribution can improve their delivery efficiencies and have an opportunity to grow their market share.

Building trust with omnichannel consumers

While consumers appreciate in-store shopping (44% say they enjoy it and missed it during COVID-19 lockdowns), many are also present on other channels. For example, 42% of Canadian consumers shop on their phones at least monthly too. Canada's retailers must not only participate in the growing market that desires mobile-friendly e-commerce features, it also requires a reimagination of how consumers use technology; either via multiple channels and sometimes simultaneously.

One channel to watch closely is the metaverse. Immersive virtual worlds accessible through different platforms that let users socialize, work, play games and buy digital and tangible objects. Globally, it's still in the early stages of adoption, with only 26% of consumers using the metaverse. That figure is even lower in Canada, at 12%.

On the surface, the high levels of uncertainty weighing on the minds of Canadian consumers may seem like a bleak forecast for retailers and consumer goods companies but this overlooks the resilience of Canadian consumers. Year-over-year retail sales are actually up in recent months, according to Statistics Canada and shoppers are still spending—albeit with greater price sensitivity and a desire for enhanced digital and in-person retail experiences.

To read the full report, click here.

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SOURCE PwC Management Services LP

please contact: Julie Ibrahim, [email protected], 416-356-8182