Articles | Digital Retail & Technology
How the pandemic has changed retail and
buying behaviors
June 8, 2021
This article is provided by Reshift Media, a Canadian-based digital marketing and
development organization specializing in retail businesses
The COVID-19 pandemic has drastically altered consumer purchasing habits, largely out
of necessity but also thanks to our evolving digital media consumption. There was a 15%
jump in time spent engaging with digital media between 2019 to 2020, up to a total of
nearly eight hours a day, reports eMarketer. Projected to increase every year, it’s clear
that digital media (and the technology that we use to consume it), will continue to play a
significant role in our lives, and that consumer buying behaviour will continue to transform.
Since the pandemic began, the ways consumers engage with retailers have undergone
a dramatic shift. As a result, North American retailers have had to adapt their in-store and
online strategies to meet the needs of consumers.
These likely very permanent changes to retail were the focus for the first day
of webinars led by the Retail Council of Canada and Reshift Media. Led by Steve Buors,
Co-Founder and CEO of Reshift Media, the webinar examined how consumer purchasing
and digital media consumption during the pandemic have transformed the current state
of retail and what the future looks like for retailers going forward. To watch the full
webinar, click here.
Changes to digital consumption
The use of mobile devices saw a large jump during the pandemic, with app usage
dominating the time spent on mobile and rising to well over three-and-a-half hours a day.
This is in large part due to in-app purchases that have seen a drastic increase during the
pandemic, especially apps like Amazon and grocery delivery brands.
One of the primary reasons digital consumption has increased is multi-tasking. For
example, a consumer’s television may be on in the background while they are scrolling
through, thereby increasing time spent on their devices. While on our phones, Canadians
spend an hour and forty-six minutes on social media: on average, Facebook takes up 35
of those minutes, with Twitter, Instagram, Snapchat and TikTok following closely behind.
The most significant changes relate to the behaviours linked to being at home. As
indicated in the graphs below, shopping online and ordering items to pick up in store has
increased, while social activities like going out to restaurants have decreased.
Shifts in buying behaviour
Buying habits have dramatically changed since the pandemic began. 85% of Canadians
say that their shopping behaviour has been affected by COVID-19, while 50% report they
are now making online purchases for typical in-store items. Most importantly, 53% of
North Americans say they have changed the way they will shop going forward, indicating
that the shifts that have taken place over the pandemic will have lasting impacts on retail.
Specific retail areas that have seen big shifts include online retail shopping, food ordering
services, and online grocery services, all of which have seen steady increases in
popularity. As well, the type of items being purchased online has also changed. According
to PWC, Canadians are buying entertainment and media products online significantly
more, while purchases of items such as household appliances have been put off (see
graph below).
Generational differences in shopping behaviour have also been reported as a result of
COVID-19. According to Prosper Insights & Analytics, boomers (1946-1964) are shopping
less in store but are also the least likely to shop more online. Meanwhile, millennials
(1983-1998) and Gen Xers (1965-1982) are almost tied for engaging in less in-store
shopping and more online shopping. This has resulted in a 71% increase of Canadian
eCommerce retail sales in 2020, equating to $37B.
Modifications to delivery
Since going into retail stores has been increasingly difficult due to fluctuating COVID-19
restrictions, the way consumers purchase and collect items has changed. Prior to the
pandemic, online shopping and home delivery were common, but “click & collect” was
relatively new and has seen major increases in use since the pandemic began. 30% of
consumers found that this method had become a normal part of their routine in November
2020, compared to 18% just seven months prior (see graph below).
Consumers seem to have embraced “click and collect,” and are significantly more likely
to use the service post-pandemic. Retailers must look at these changes to the delivery
process not just as current tactics, but rather as the long-term reality.
Customer switching is more prevalent
Customer switching occurs when consumers abandon a brand/service and replace it with
a competitor. This has been on the rise since the pandemic began for a variety of reasons,
including because a consumer’s preferred store is out of stock of an item. In-stock
availability is a major concern, particularly when it comes to online shopping. According
to Numerator and Shopify, other reasons customers switch from their preferred store are:
because it’s too crowded, they want to shop closer to home, they are trying to support a
local business, the preferred store is closed or has limited hours, and the preferred store
is too expensive.
Rapid growth for D2C companies
2020 has shown a 45% growth in Direct-to-Consumer (D2C) eCommerce sales compared
to 2019, and the projected numbers are promising: 80% of consumers are expected to
make a minimum of one D2C purchase in the next five years, according to eMarketer
(see graph below).
Brands that have seen growth in D2C sales include Nike with 33% total revenue, and
L’Oréal, which reported a significant jump in total eCommerce sales from 16% in 2019 to
30% in 2020.
A focus on ethics and local shopping
Being environmentally friendly and following ethical practices are becoming increasingly
important to consumers, with PWC reporting that 32% of Canadians are willing to pay
more for brands with well known ethical practices. Similarly, 57% of buyers are seeking
out local businesses to support, with 34% doing this more often than before the pandemic.
The majority of consumers who fit this statistic are between 18-34 years old, but other
demos follow closely behind.
There is also a greater focus on where items are being purchased since the pandemic
began, which plays into the increased focus on shopping local. Products with traceable
origins are a major concern among consumers and have been having an impact on
purchases throughout COVID-19.
A digital-first shift in advertising
As shown in in the graphs above, advertisers have adapted to accommodate more
digitally focused spending in 2020, compared to 2019. Social media, digital video, and
digital display have seen major increases, mainly due to the need to reach customers
where they are. Since mobile use has increased dramatically since the start of the
pandemic, spending on mobile activities has taken up a large percentage of marketers’
budgets, which is set to increase even more in the next five years, according to The CMO
Survey.
Although acquiring new customers has seen an increase in focus between 2020 to 2021,
marketing objectives have also shifted to focus more on retaining current customers and
building brand value that connects with consumers. The shift to a digital-first approach
has resulted in an increase in eCommerce, mobile commerce, and social commerce
projected for the next six months, according to eMarketer.
Key takeaways
COVID-19 has resulted in major changes to consumer buying habits. eCommerce has
grown in popularity, while brand loyalty has decreased. Also, local and ethical buying is
much more of a factor than ever before, D2C companies are growing, a focus on digitalfirst is much more evident in marketing budgets, and many retailers are spending more
in the digital sphere in order to adapt to their customers’ shifting behaviour. Consumer
habits have been significantly disrupted, which means that the way retailers operate their
business has changed. Adapting quickly to these new consumer and digital trends will
help set businesses up for success post-pandemic.
About Reshift Media
Reshift Media is a long-time partner of the Retail Council of Canada. The company is a
Toronto-based digital marketing and development organization that provides leadingedge social media, search and website/mobile development services to retailers around
the world. Please visit www.reshiftmedia.com to learn more.