Online shopping comes with the ease and flexibility to browse through products from multiple places while comfortably sitting in one. But can it compare to the in-store shopping experience where you can see, feel, and physically touch the products? How has the dynamic shifted during the pandemic and what it all means for the future of Canadian businesses? Let’s dive in to find out.
In partnership with Moneris® Data Services, the Angus Reid Group conducted a study analyzing the effects of the pandemic on the Canadian apparel industry to see how it shifted the balance of in-store and online spending. Here are the key insights:
1. In April 2020, we saw an almost 90/10 split, implying that the majority of the shoppers shopped online given the pandemic restrictions. As restrictions loosened, the balance began to shift towards in-store. However, in January 2021 when the lockdowns were imposed again, it reinforced online spending with over 70% of people shopping online.
2. The study further shows that the pandemic did leave a lasting impact on how Canadians shop. The share of online spending remains slightly elevated relative to the pre-pandemic landscape. The result is a 5% percent increase in online apparel sales in August 2022.
3. With the onset of the holiday season, we’re predicting the share of online spending to increase even further and peak in November and reach a share of almost 35%.
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Through all the highs and lows of pandemic spending, Canadians seemed to have found their happy medium when it comes to online vs. in-store shopping. Survey respondents who said their online shopping increased compared to pre-pandemic don’t expect that trend to continue over the next couple of years. When surveyed about spending on apparel, roughly half of the respondents said their online vs in-store mix would remain the same, with some respondents seeing a bit more room for growth online.
Read more about the findings and access the full report here.
Article filed under:Insights and Trends