Table of Contents
Executive Summary
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- The issues
- Canadians’ enthusiasm for Black Friday and Cyber Monday is soft
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- Figure 1: Approach to holiday shopping, June 2015
- Engaging the less affluent household or budget-minded consumer
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- Figure 2: Shopped for Christmas, by household income, June 2015
- An aging population implies new marketing strategies may be required
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- Figure 3: Occasions shopped for (purchased items for any holidays in 2014), by age, June 2015
- The opportunities
- Promoting gift cards: The most desired and most likely gift to be given
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- Figure 4: Categories desired and will purchase, June 2015
- Elevating Thanksgiving and New Year’s Eve as celebrations to prepare for
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- Figure 5: Occasions shopped for, June 2015
- Making holiday shopping more accessible for the less affluent or budget-conscious consumer
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- Figure 6: Attitudes towards using coupons or discounts during holiday season (any agree), by household income, June 2015
- Creating value through means other than discounts
- What we think
The Market – What You Need to Know
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- The population is unevenly dispersed and ethnically diverse
- An aging population implies shifts in marketing of holidays may be in order
- Spending habits will shift due to the economy
- A weak Canadian dollar impacts consumers and retailers
- Shopping opportunities are increasing and spreading across platforms
Market Factors
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- The population is unevenly dispersed and ethnically diverse
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- Figure 7: Share of population of Canada, by territory/province, 2014
- Canada’s population is aging and will continue to do so in the coming years
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- Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Age is impacting labour force participation
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- Figure 9: Canada’s unemployment rate, by gender, January 2008-January 2015
- Recent economic activities have negatively impacted consumer confidence
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- Figure 10: Household disposable incomes and savings in Canada, by quarter, Q4 2008-Q4 2014
- Canadians are facing record high levels of household debt
- A weaker Canadian dollar will impact shopping both consumers and retailers
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- Figure 11: Exchange rate (CAD>USD/GBP), January 2008-January 2015
- Shopping opportunities are abundant across platforms
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- Figure 12: Total number of shopping centres in Canada, 2001-12
- Figure 13: Retail e-commerce sales in Canada (in billion US dollars), 2012-17
Key Players – What You Need to Know
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- Holiday advertising efforts typically go back to basics
- Canada’s retail landscape is changing
- Innovations will shape in-store and online shopping
What’s Working?
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- Holiday campaigns often go back to basic emotions and traditions
- A focus on tradition: Coca-Cola
- Make them laugh: Kate Spade
- Holidays are about giving: WestJet
What’s Changing?
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- Canada’s retail landscape sees many upcoming changes
- Hudson’s Bay Company will be going high end with Saks Fifth Avenue acquisition
- La Maison Simons set for expansion across Canada
- Holt Renfrew is in flux
- Nordstrom has settled into Calgary and opened its second location in Ottawa
- Other international entrants on the way: Uniqlo and Bloomingdale’s
- More merchants will be going online
- Shopify
- Square Reader (Square Register App)
What’s Next?
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- The evolving role of store experiences
- Elevating the in-store experience: Eataly
- Online retailers open brick and mortar shops: Frank & Oak
- Taking the experience outside the shop: Walmart
- Online shopping gets more convenient
- Taking the hassle out of shipping: Walmart
- Pick-up services are becoming available: Penguin Pick-Up
- Buy buttons on social media
The Consumer – What You Need to Know
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- Holiday shopping primarily revolves around Christmas
- Gift cards dominate as the most desired and most likely gift to be given
- Canadians are divided in terms of when they start holiday shopping
- Regardless of the platform, consumers are open to suggestions
- Money-saving strategies will be weighed against choosing the “right” presents
Holiday Shopping Occasions
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- Canadians are engaged holiday/seasonal shoppers
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- Figure 14: Occasions shopped for, June 2015
- Over four out of five Canadians shopped for Christmas
- Christmas for less affluent households may mean fewer gifts
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- Figure 15: Shopped for Christmas, by household income, June 2015
- Income may be impacting Quebecers
- Families and immigrants are celebrating Thanksgiving and New Year’s Eve
- Chinese New Year is an important shopping occasion for Chinese Canadians
Giving and Receiving Gifts
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- Gift cards and clothing and footwear top the list for desired gifts and planned purchases
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- Figure 16: Categories desired and will purchase, June 2015
- Gift giving may be simplified with the popularity of gift cards
- Clothing and footwear retailers have an attentive audience with women under-55 and moms
- Alcoholic beverages are of interest to men and the more affluent
- Electronics see greater interest from men under 55, Millennial women and Chinese Canadians
- Consumers will also celebrate by buying food, drinks and decorations
- Big ticket items are of interest to under-55s
The 2015 Holiday Shopper Profile
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- Women and parents will be the primary shoppers for holiday gifts
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- Figure 17: Will purchase gifts (any) for others this holiday season, by gender, presence of children, and belonging to LGBT community, June 2015
- Benefits aplenty for targeting LGBT shoppers
- Targeting Chinese Canadians will be worthwhile for marketers during Chinese New Year
- Holiday shoppers will be buying for others, but also for themselves
Approach to Holiday Shopping
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- Canadians are divided in terms of when they start holiday shopping
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- Figure 18: Approach to holiday shopping, June 2015
- Women and older men are year-round shoppers
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- Figure 19: Agreement with “I try to avoid the crowds when doing my holiday shopping” (any agree), by age and gender, June 2015
- Millennials, men, Quebecers and parents of teens are more last minute
- Opportunities abound for Cyber Monday and Black Friday
- Leveraging technology to aid the in-store shopping experience
Going Online for Holiday Shopping
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- Four out of five holiday shoppers will be going online
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- Figure 20: Proportion of online shopping, June 2015
- The power of persuasion
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- Figure 21: Agreement with the notion that online suggestions often lead to a purchase (any agree), by age, June 2015
- Free shipping is a determining factor
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- Figure 22: Preference for shopping from online retailers that offer free shipping (any agree), by age and gender, June 2015
- Options explored if no free shipping is available – a qualitative look
Holiday Shopping In-store
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- Shoppers will be primarily buying gifts in-store
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- Figure 23: Proportion of online shopping, June 2015
- Holiday in-store displays will influence spontaneous purchases
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- Figure 24: Attitudes towards holiday in-store displays (any agree), by age and presence of children, June 2015
- The in-store experience still plays a large role
- The desire for customer care – A qualitative look
- Regardless of channel, retailers with the “hottest” items will be noticed – particularly among Millennial men, fathers and Chinese Canadians
Budget versus Buying the Right Gift
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- Holiday shoppers will balance choosing the “right” presents against budgetary constraints
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- Figure 25: Attitudes towards holiday shopping (selected statements), June 2015
- Money-saving strategies will be employed
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- Figure 26: Attitudes towards holiday shopping (selected statements), June 2015
- Shoppers are paying attention to ads and actively scouting for promotions
- Actively seeking deals – A qualitative look
- Consumers actively seeking deals calls for a multi-channel approach from retailers
- Year-round shopping may be a strategy to ensure the right gifts are bought for recipients at a reasonable price
- Value-adds can mean more than price cuts or discounts
Target Groups
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- Four target groups
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- Figure 27: Target groups for holiday shopping, June 2015
- Budget Focused Mothers (33%)
- Holiday Shopping Enthusiasts (30%)
- Big Ticket Purchasers (25%)
- The Older Shopper (12%)
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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