According to the Ernst & Young (EY) report, “Redefining Loyalty for Retail”, it was projected that holiday retails sales in Canada would grow four percent over last year. Millennials would drive spending, with British Columbia leading in sales. The report also revealed that Millennials interests would shift from consumption to experiences, both online and in-store.
With 19 percent decrease in gas prices, a new and generous federal child tax payments and employment growth, shoppers are predicted to be even more optimistic this year. Retailers might find it of interest that Millennials are predicted to still pick clothing, toys, electronics and gift cards as top choices. Their need for new experiences, however, might just lead them to more gift card purchases this year for travel and restaurants.
According to Daniel Baer, EY partner and national retail and consumer products industry leader, “Millennials seek experiences, fun and personalized indulgences, and they’re willing to pay a premium for them”.
Baer went on to share that, for functional items, millennials will expect to experience convenience, selection and low prices. He also encouraged retailers to be aware of how social-media savvy and digitally connected Millennials are. Retailers would be wise to add the smartphone and tablet to their set of interactive tools this holiday season.
Even with the increase in e-commerce, it is also predicted that brick-and-mortar stores is where the majority of holiday shopping will be taking place. According to Baer, “retailers need to adopt the right technologies and the right attitude to leverage their real estate if they [retailers] want to delight consumers”.
It is important for Canadian retailers – all retailers – to realize that the ways to engage consumers are multiplying rapidly. In order to thrive, retailers will have to adapt quickly to keep up with and offer consumer’s the experience and options they want. One way to do this is by offering consumer’s payment options that also safeguard their information, such as a high risk Canadian merchant account with EMB.
A Canadian merchant account allows merchants to offer iCheck processing. This account also provides merchants with chargeback protection and prevention programs. With the holidays fast approaching, now is the time for Canadian retailers to make the most of the predicted growth in sales. Making sure you are equipped to offer your consumers the very best in payment processing while also catering to their digital connectivity is a great place to start.