In the wake of COVID-19, there has been a drastic shift from in-person transactions to online shopping as the digital world quickly took over. This change in consumer behaviour is crucial in understanding the rise and fall of businesses in Canada.
Shift to Online Shopping
Due to the impact of COVID-19, consumer behaviour and businesses have drastically changed. While online shopping has been available for several years, it became far more popular during the pandemic. The stay-at-home orders have caused in-person businesses to close their doors, which has sparked an increase of online shopping for consumers. In fact, according to Statistics Canada, retail e-commerce sales reached a record of $3.9 billion in May 2020, and many expect this to continue in the coming years.
Online shopping has become extremely convenient for consumers, especially those who have a hard time leaving their homes. Now more than ever, people have quickly adapted to buying anything from the essentials to guilty pleasures online, and some businesses are taking advantage of this new opportunity. For example, Instacart, a grocery delivery company, allows consumers to buy groceries and have them delivered to them, without ever having to leave their homes. Instacart allows consumers to choose from a variety of stores and connects them with personal shoppers once the order has been placed. The company has seen an increase in user activity since the start of the pandemic through its ability to provide accessibility and ease to their customer's online buying experience. Using an app like Instacart saves the consumer valuable time and minimizes spending money impulsively.
Businesses which provided a digital option to their customers were able to capitalize on the change in consumer behaviour. For instance, TJX Companies Inc., the owner of Winners and HomeSense, does not have an option for online shopping. They failed to adapt to the increased activity of online shopping, which arguably has affected their retail sales. Presently, while some consumers are back to shopping in person, others have become accustomed to shopping online and have no desire to change that. Customers appreciate the options that shopping online provides, and we can expect that online shopping will continue to prevail post-pandemic. Small businesses and others that do not currently have an option for online shopping should consider doing so as this shift to online will remain permanent, driven by consumer preference.
Key Takeaways
E-commerce has grown in popularity due to the changes in consumer buying habits, as a result of the pandemic. In order for businesses to continue their success, they must adapt to the increase in digital marketing methods. Failure to do so could result in loss of business revenues and even a full shut down. There is no doubt that the trend towards online shopping will remain after the pandemic, and it is important for businesses to examine their online strategy to adapt to consumer demands.
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