Canadian retailers must adapt to take advantage of this moment of opportunity.
“ 24 percent of Canadians crossed the border to shop in the United States last Black Friday.”
And while American shoppers typically travel just a few miles down the street to snag door-busting deals, Canadian shoppers have quite a different experience.
For many years, Canadians have traveled to the U.S. to take advantage of lower prices and a more favorable exchange rate. IPG estimated that 24 percent of Canadians crossed the border to shop in the United States last Black Friday.
But the game is changing.
As Black Friday gains global momentum, Canadian consumers are looking to retailers to offer deals locally to keep shoppers from crossing the border. This year, the number of Canadians who are likely to buy goods from the U.S. either online or cross-border is expected to drop by 22 percent.
The latest research by UPS Canada analyzes Canadian shoppers’ purchasing habits during the Black Friday weekend.
Here’s what Canadian retailers need to know about local shoppers this holiday season:
- Canadians are loyal –39 percent of Canadians prefer to shop and support local retailers, according to UPS data. There is a huge opportunity for Canadian retailers to build brand loyalty and create advocates by offering holiday sales and promotions.
- Buyers love to shop online – Canadians are on the hunt for holiday savings. This Black Friday, 34 percent of shoppers will use a Canadian retailer’s online site to source sales. Re-vamp your website by providing holiday promotions to attract shoppers.
- ShareAll about the economy – Canadians want to shop – but at the right cost. The recent downturn in the Canadian economy caused 56 percent of shoppers to identify the unfavorable exchange rate as the top reason to avoid U.S., Black Friday deals. Keep the economy in mind. Canadians are still budget-conscious.
“ Keep the customer in mind and align with their needs to bolster your business. ”
- Reaching the younger crowd – Millennials shopping cross-border or online with U.S. retailers aren’t in the festive spirit…yet. Of those surveyed, 54 percent are shopping for themselves. Though not the season of giving for all customers, this is a huge opportunity for Canadian retailers.
- Savings are key – With so many gifts to buy, the holidays can be expensive. Shoppers are always looking for holiday promotions to save money. This year, Canadians shopping with U.S. retailers will see their expected savings drop by $80 compared to 2014, providing Canadian retailers with a chance to entice shoppers to purchase local goods during the holiday season.
The bottom line: Keep the customer in mind and align with their needs to bolster your business. Canadian shoppers are evolving – Canadian retailers must adapt to take advantage of this moment of opportunity.
To learn more about Canadian consumer shopping habits visit UPS Pressroom.
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