The highly anticipated opening of the Royalmount shopping mall in Montreal signals a massive investment in retail spaces and in-person commerce.
This continues a major shift among Canadian consumers in 2024 where they are seeking more in-store shopping experiences.
According to a retail report by Adyen Canada, 54 per cent of Canadians prefer to shop in-store rather than online. And nearly a third (32 per cent) are likely to spend more money if a retailer makes the experience more interesting.
Sander Meijers, Country Manager for Adyen Canada, said the resurgence of physical retail can be attributed to the unique experience that brick-and-mortar stores offer.
“There’s a desire for tangible interaction — to see, touch and even smell the products — before purchase. While online shopping has its own benefits and advantages, there is something special about hunting down a coveted item and having it in your hands upon leaving the register. It’s an experience,” says Sander Meijers.
“In-store shopping can also have a social element. Shopping with family or friends is something that online platforms haven’t yet fully replicated. Beyond that, consumers want the freedom to explore, pay and return items wherever they want. In the future, I believe we’re going to see an increased focus on unified commerce so retailers can bring their online and in-store payments systems together to deliver greater experiences, while removing friction.”
Meijers said developments like Royalmount shopping are an example of how retail is evolving in Canada.
“By blending shopping with entertainment and lifestyle offerings, businesses can attract visitors who seek an elevated shopping experience, a trip that’s more than just an errand. The new Rennai store is another example; it’s not just a store, but a holistic experience.”
“In today’s increasingly digital world, in-person retail is about creating a destination that offers a memorable experience. Payments can play a big part in enabling this by facilitating seamless transactions and enhancing the overall journey.
“New malls like Royalmount highlight how retail is changing. Physical retail is evolving where a customer can start their shopping journey on a mobile app, browse options online, and complete their purchase in-store.”
As consumer expectations continue to evolve, so too must the retail landscape, added Meijers.
“New technology and rising customer expectations are raising the bar across the industry, which means there’s an increasing demand for innovative spaces that blend convenience with experience, and developers are responding by creating environments that cater to this. Mobile terminals, and even Tap to Pay, will make clunky terminals fixed on a counter a thing of the past. Every payment could potentially become a service moment between individuals that is seamlessly integrated in the shopping experience.”
“Today’s consumers are searching for retailers that offer not only high-quality products but also integrated and personalized shopping experiences. They’re looking for convenience, sustainable business practices, and a seamless blend of online and offline shopping channels. According to Adyen’s Retail Report, the challenge is 26 per cent of businesses say they lack the customer data and technology infrastructure to truly understand their customers. And just 25 per cent of businesses know the majority of their customers well enough to personalize items. Highly personalized experiences used to be reserved for luxury retail. Now, thanks to innovations in financial technology, retailers can leverage data-driven tailored experiences, like personalized discounts and promotions, efficiently and at scale.”
Meijers said the brick-and-mortar store needs to be connected with the online world to thrive.
“Retailers must innovate within their physical environments to remain competitive. This means engaging customers on multiple levels, especially those that cannot be replicated online, ranging from in-store events to personalization that make the shopping experience more engaging and meaningful.”
