Canadian retailers face growing pressure to strengthen trust and deliver more personalized shopping experiences through technology as consumers rein in spending amid inflation, according to new research released Tuesday by SOTI.
The company’s annual global report, based on responses from 13,000 consumers across 11 countries including 1,000 in Canada, found that 83 per cent of Canadians are shopping more carefully, while 53 per cent want retailers to offer more connected, personalized technology experiences.
Cost pressures reshape shopping behaviour
The research indicates that economic conditions continue to influence how Canadians shop, with consumers becoming more selective and pragmatic over the past year. SOTI said 64 per cent of Canadians reported that economic factors have affected their ability to purchase their usual items in the last 12 months, placing Canada among the countries most affected.
Consumers are responding by reducing impulse or non-essential purchases and paying closer attention to value. The study found 43 per cent of Canadians are cutting back on non-essential buying, while 31 per cent check product origin and 38 per cent actively choose Canadian-made goods to support the domestic economy.
“Canadians are navigating a cost-of-living crunch by being smarter with how and where they shop,” said Shash Anand, senior vice-president of product strategy at SOTI. “They’re prioritizing price and increasingly supporting local brands that align with their values. Retailers who leverage technology to improve operational efficiency, whether through smarter inventory management, dynamic pricing or personalized loyalty offers, will be better positioned to maintain trust and customer retention even in a tighter economy.”
Technology seen as lever for engagement
While digital tools are now a common part of the retail experience, the research suggests many Canadians believe retailers can do more to connect technology with personalization. Half of Canadians surveyed said they choose in-store retailers that use technology to make the experience more personal, while 55 per cent said the same for online retailers.
Nearly half, or 48 per cent, said they use retailer apps for loyalty points, faster checkout or exclusive offers, signalling that mobile technology is already embedded in purchasing behaviour.
“Canadian consumers are digitally savvy and want retailers to make technology more rewarding, not just functional,” Anand said. “Our report found that 53% of Canadians would like to see more technology-enhanced shopping, which is a clear sign to retailers that they must integrate connected and secure mobility platforms across apps, devices and in-store experiences to truly differentiate in this competitive market.”
The findings suggest that retailers’ technology strategies may play a role not only in customer experience but also in maintaining competitiveness as consumers compare prices across channels and seek value-driven loyalty programs.
Privacy and security concerns persist
Alongside rising use of digital tools, concerns about privacy and data security remain high, the report found. SOTI said 84 per cent of Canadians are concerned about at least one privacy or security issue when shopping either online or in-store.
The research also found that 86 per cent of Canadians would hesitate to buy from a retailer that has experienced a cyberattack, highlighting the potential business impact of security incidents on consumer trust.
As consumers become more aware of how their data is collected and used, the report said expectations are rising for transparency and protection across retail systems.
“Canadian consumers are open to personalization, but only if they can trust retailers with their data,” Anand said. “Retailers must invest in systems that don’t just secure transactions but also protect every connected device and apps in their ecosystem. At SOTI, we’re seeing Canadian businesses focus on strengthening mobility management, compliance and visibility to meet these rising expectations. Trust has become a core currency of loyalty in retail.”
Scope of the research
The report, titled Retail Tech Assessment: Opportunities for Enhanced Consumer Experiences, draws on consumer responses from 11 countries: the United States, Canada, Mexico, the United Kingdom, Germany, France, Sweden, the Netherlands, Italy, Spain and Australia. SOTI said the expanded scope includes Italy and Spain for the first time.
The Canadian findings form part of SOTI’s broader assessment of how technology, economic pressures and data security concerns are influencing retail behaviour globally.
SOTI, which is based in Mississauga, describes itself as a provider of business mobility solutions.
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