An Apple a day keeps the others away
Apple reigns supreme. When it comes to Customer Service, Merchandise Quality, Store Layout and Decor, and Value for Money, Apple scored 63 out of 100 according to Canadian consumers surveyed in the 2011 Major Market Retail Report (MMRR) study.
The Apple store ranked first in customer service, first in merchandise quality, second in store layout, but tied for last place in value for money.
The other retailers rounding out the top five are Lowe's, La Maison Simons, Jean Coutu, and Holt Renfrew.
Walmart, Canadian Tire, and Shoppers Drug Mart are the three most-shopped retailers in Canada, but Walmart is going to see some challenges in the coming year or so with the entry of Target onto the Canadian landscape. Consumer interest is high in Target, and the question is, "Can they challenge Walmart's popularity?" Walmart is the most shopped retailer in 15 of 33 product categories and the second most shopped in eight others.
The survey is based on over 1,500 Canadian respondents in Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal, and examines consumer behaviour in 33 product categories at 147 retailers, taking into account a range of competitive retail metrics, such as market coverage, shopping levels, drawing power, loyalty, and consumer performance ratings.
The top six Canadian markets will generate a projected $223 billion in retail sales in 2011, or about 49% of the national total of $460 billion.
The Electronics Communications category, new in MMRR 2011, was dominated by Rogers Wireless. Nearly 1 in 4 Canadian consumers shopped at Rogers Wireless last year, while Best Buy came in 2nd and Bell Mobility ranked 4th.
In Home Decor, another new MMRR product category, Walmart was the most shopped at 39% compared to Ikea at 37%; however, Ikea was the "most preferred" retailer in the category at 27% to Walmart's 22%.
Loyalty programs continue to be highly used by Canadians. Nearly 80% of survey respondents are currently enrolled in Air Miles, making it the most popular loyalty program in Canada. HBC Rewards and Canadian Tire Money are #2 and #3, respectively. In terms of recent usage, over 41% said they had used Air Miles within the past month, Shoppers Drug Mart's Optimum program is second with 24%, and Costco's membership is third at 22%.
8% of Canadians are already members of Target's "REDcard" loyalty program.
Consumers are more optimistic about the economy, with 48% of stating the economy is getting better and only 28% saying things are getting worse. This is a stark contrast to the 2008 findings, where 44% of respondents felt the economy was getting worse. Calgary is the most optimistic market in Canada with 60% of consumers stating the economy is getting better and just 17% saying it is getting worse. Montreal is the most pessimistic market with 35% of survey respondents saying the economy is improving and 40% saying the economy is getting worse.
Nearly 70% of consumers said they expect their retail spending to be the same or less than in 2010.
Almost 70% of survey respondents made an online purchase in the last 12 months. Yet Canadians are still shopping at retail stores for books, magazines, music and videos, with 56% of Canadian consumers going to physical shops to make purchases in this category, down from 66% in 2008.
And for the first time, online ranked ahead of flyers as the preferred source of product and shopping information, with 73% of respondents rating the Internet as "good" or "excellent" compared to 71% who favoured flyers. Consumers however still showed a strong loyalty to printed flyers with 48% saying they use them often vs. the 22% who use e-flyers often.
Consumers are overwhelmingly opting-in to online advertising. 82% of respondents receive at least one piece of direct e-mail advertising, a dramatic increase over the 62% in 2008. On average, Canadian consumers receive opt-in advertising from 4.5 retail sources.
About Major Market Retail Report
Major Market Retail Report is a study of Canadian retailer performance published by KubasPrimedia. It covers Canada's six largest retail markets, the Census Metropolitan Areas of Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, and Montreal ("VECTOM"). MMRR 2011 examines 147 retailers, including department stores, mass merchants, and specialty retail chains. Store preferences across 33 product categories are analyzed, along with issues such as use of shopping information sources, interest in new retail developments, and perceived performance of specific retailers. The research is based on a survey of 1,520 consumers, which is statistically accurate to plus or minus 2.5%.
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