At a time when Canadians are increasingly favouring Canadian brands and shopping, new data from Adyen, the global financial technology platform of choice for leading businesses, in partnership with the Retail Council of Canada (RCC), provides insights into how Canadian retailers can fortify the shopping experience when it matters most.
- Experience converts to loyalty: The majority of Canadians (81%) agree they are likely to return to a store that delivers a meaningful or memorable shopping experience
- Payment preferences: Canadian shoppers most frequently pay in-store with a tap/contactless credit or debit card (52%) and online with a digital wallet (26%).
- Shipping costs are make-or-break: More than half of Canadian shoppers (55%) agree that unexpected shipping costs or fees when shopping online could cause them to abandon a purchase.
- Long lines are a turnoff: Nearly half of Canadian shoppers (49%) say long checkout lines while shopping in-store could make them abandon a purchase.
“While online shopping offers seemingly endless options, it can’t match physical stores for instant gratification. The top reason for visiting physical stores was the ability to buy something immediately, chosen by 60% of consumers, with 34% wanting to avoid shipping delays,” said the report.
In-store shopping also puts shoppers in control, fitting seamlessly into their everyday lives:
- 55% shop in-person because of the convenient location
- 45% want to try on and test products in person
“And then there’s the chance to save. 42% of consumers shop in-store to avoid shipping fees while 37% look for the exclusive in-store discounts or couponing opportunities that physical stores provide.”
Overall, it was the practical side of in-store shopping that appealed to the Canadian shoppers we surveyed. Just 29% mentioned the social aspect of shopping, such as spending time with friends or interacting with staff. Only 13% highlighted special in-store events. While Santa Claus might swap the North Pole for malls across Canada each November and December, that may not be enough to tempt Canadians out of their homes, said the report.
“Many Canadians continue to value in-person shopping for the experience, convenience, and potential cost savings it offers. From being able to try products firsthand to avoiding shipping fees, these in-store benefits remain important. Retailers who prioritize seamless, memorable experiences are well-positioned to build lasting customer loyalty in a competitive landscape,” said Santo Ligotti, VP of Marketing and Member Services, Retail Council of Canada.
While overall Canadians enjoy in-store shopping, they do have frustrations, said the report, adding that the main reasons for walking out rather than checking out are:
- Items out of stock (53%)
- Long lines (49%)
- Poor customer service (41%)
“In fact, that personal touch is something that Canadian shoppers truly value. 80% of the 2,000 shoppers surveyed said they’d be likely to return to a store that provided a meaningful or memorable experience. This sentiment increased across generations, from 76% of Gen Z to 86% of the Silent Generation,” it said.
“So what does make Canadian consumers opt for online? It’s that combination of cost and convenience. The top reason for shopping online, chosen by 53% of our respondents, is when an item isn’t available in-store.
“Another practical reason is limited access to physical stores, due to geographical location or lack of transportation. This was the case for 29% of respondents, peaking at 36% in Saskatchewan.
“Savings also play a significant role. 32% shop online to take advantage of promo codes and other perks of being a loyal customer. In contrast the flip side, it’s unexpected fees that rankle. Over half (55%) of online shoppers will abandon their carts due to unexpected shipping fees, a figure that jumps to 63% among Baby Boomers.
“Those fees are even more of a consideration when it comes to returns, with 68% of shoppers saying these fees influence whether they’ll return items online or in-store.
“Meanwhile there was consensus at either end of the demographic spectrum with 50% of both Gen Z and the Silent Generation saying they would clear their cart if delivery times were unclear or take too long.”
Customers want better loyalty programs offering personalized rewards (39%). And, regardless of the technological advances that emerge, the personal touch still matters. 25% percent want to see enhanced human interactions and customer service, compared to 12% who would prefer cashier-less stores, added the report.
“Canadian shoppers’ preferences are evolving, but at the core, they still expect a balance of cost, convenience, and experience. Retail is no longer just about choosing between online or in-store; it’s about offering value in all its forms. Whether it’s the speed of getting something immediately or the savings of skipping shipping fees, the future of retail lies in seamlessly blending convenience, cost-effectiveness, and personalized service—no matter where customers choose to shop,” said Sander Meijers, Canada Country Manager, Adyen.
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