Connected commerce: A seamless omnichannel experience

When COVID-19 forced everyone indoors, Canadians had no choice but to shop for most items online. The ease of buying clothes, groceries, and other essentials from the couch quickly won over consumers, leading some industry watchers to question whether in-store shopping would ever rebound. Now, five years after lockdown, it’s clear that the belief in the inevitable decline of the physical location had been overstated. Instead, a new omnichannel experience, where commerce is far more connected in the online and offline worlds, is forming. Success will come to those who are able to rethink customer experiences and break down data silos to give shoppers what they want in today’s retail environment.

In our latest retail survey, we asked 1,522 Canadians over the age of 18 about their retail shopping habits, gauging their feelings on a wide range of topics from privacy and loyalty programs to inventory management and personalized marketing. While findings show there is a strong desire for more tactile, in-store shopping experiences, it is important to recognize that we are not returning entirely to pre-pandemic norms. Retailers must pay close attention to shifting consumer trends and purchasing behaviours to provide their customers with an optimal shopping experience. By leveraging data insights, retailers can adapt and tailor their strategies to meet changing preferences and expectations and ultimately enhance their customer satisfaction and loyalty.

Here are the key findings and insights from our 2025 Canadian retail survey.

In-person shopping remains a top choice for Canadian consumers

As online sales channels continue to rapidly proliferate, Canadians are not ready to give up on brick and mortar. A significant 66% of respondents prefer the in-store shopping experience, driven in part by a desire to physically “try out” items before buying them. 26% said they appreciate the speed at which they can get products in-store, and 57% said they preferred in-store shopping because they were frustrated with the online experience. This frustration can be attributed to many factors, including the inconvenience of shipping delays, the overwhelming need to endlessly scroll through options, the fatigue of comparing numerous products, cumbersome return processes, and the uncertainty of receiving items that may not meet expectations. The good news, however, is that the dissatisfaction with online shopping has resulted in consumers refocusing on what they truly value, which is engaging in a shopping experience that delivers on expectations, the convenience of getting products immediately after purchasing, more frictionless returns, and more responsible purchasing overall.

The types of products Canadians purchase also play a significant role in determining whether they buy online or in-store. For instance, our survey found that 69% of all respondents have purchased at least some electronics online, while 61% said the same about clothing and accessories. Attitudes reversed when it came to auto and home improvement supplies, health and beauty products as well as medication; clearly indicating a strong preference for shopping for those items in-store. Out of all product categories, though, grocery shopping is overwhelmingly favoured to be an in-person experience, with only 10% of total respondents stating they shop for groceries online. That shouldn’t come as a surprise, although many consumers became accustomed to buying food online during the pandemic, most still prefer to choose their produce by hand and prefer picking up items at their own convenience.

Understanding Canadian shopping habits: Online versus in-store

^{Source: KPMG in Canada, 2025 Canadian retail survey}

While shopping online may never fully overtake in-store experiences, it’s evident from our survey that having flexibility and both channels available is critical moving forward. To address this, more retailers may want to take a showroom model approach, allowing consumers to try items in a physical location before purchasing them and having items shipped directly to their homes.

The online and in-person experiences should be more closely aligned, too. For instance, in-store grocery shoppers can easily compare ingredient lists across various brands as products sit next to each other on the same shelves. This becomes more challenging online, where only one item can be viewed at a time on a computer or mobile device. As well, unlike in physical stores, there are no aisles online where products are often grouped together. Instead, shoppers must search for each individual product, prolonging the buying experience. Substitutions are also an issue when buying virtually: when a desired product is out of stock, the alternatives offered may not meet the buyer’s preferences or expectations.

While these examples are specific to grocery shopping, they highlight important lessons for all types of retailers. The line between online and in-store shopping is increasingly blurred, and consumers now expect a seamless integration of both experiences.

E-commerce will continue to grow, but it won't grow equally for all customer segments. Retailers who understand their customers will be better prepared to supercharge this growth.

Katie Bolla

Partner, Customer Practice & GTA Consumer and Retail Industry Lead

KPMG in Canada

Digging for deals

Shopping habits have evolved, but there’s still nothing like discovering a good deal. For 57% of respondents, finding a good discount is far more likely to motivate consumer behaviour than brand loyalty. The desire for a deal likely won’t shock those in the retail industry – price, location, and perceived value have always been main motivators for shoppers – but with higher inflation impacting personal finances over the last two years, deals are arguably even more of a driver than they have been in the past.

The instant ability to compare products online is increasing pressure on retailers to adopt more strategic pricing strategies. Additionally, as consumers become more informed and conscientious, they are not only looking for the best prices but also for brands that demonstrate a commitment to sustainability and ethical practices. This shift means retailers must align their pricing strategies with their values regarding sustainable practices, manufacturing processes, and ingredient quality, creating a challenge in striking the right balance.

In response, many retailers are adapting their digital platforms to meet these evolving consumer expectations. They are leveraging data to suggest products based on shopping habits, facilitate easy comparisons of different models, and providing detailed information about product composition. Retailers who fail to deliver this enhanced experience, even if they offer the lowest prices, may have trouble attracting shoppers who are increasingly mindful of their purchasing choices. By aligning pricing with consumer values, retailers can create a more compelling value proposition that resonates with today's conscientious shoppers.

Mapping shopping behaviours of Canadian consumers

^{Source: KPMG in Canada, 2025 Canadian retail survey}

Examining loyalty programs and personalization for customer retention and increased sales

Even though deals – and specifically percentage off discounts – are a major driver of consumer behaviour, loyalty is still important. Whether it’s digital points on groceries or collecting stamps for a free coffee, 90% of survey respondents belong to a loyalty program, while 38% say they are very or extremely influenced by these programs. However, 41% of shoppers still say loyalty programs only have a moderate influence on their buying behaviours.

This means it’s imperative that retailers understand their customers and what influences their loyalty, and there is no one-size-fits-all approach. For some it’s feeling part of a community or buying from a retailer that aligns with their values. It might also be knowing that a store has great product inventory or that the service provided is consistent and efficient during a purchase. Whatever it may be, having clear and purposeful customer value propositions is key.

It’s also important to recognize that loyalty programs serve a dual purpose: they not only influence purchasing decisions but are also designed to capture valuable data. This data enables retailers to develop personalized marketing strategies for their customers, including tailored shopping experiences, targeted deals, and product innovations. As data silos diminish and retailers begin to share information across their various lines of business, increasing loyalty through personalized marketing becomes even more critical.

Our survey also found that shoppers are willing to interact with personalized marketing, especially younger consumers, with 42% of those aged 18 to 44 saying they “sometimes” engage with targeted marketing. Nearly 30% of consumers 45 plus say the same. These interactions are facilitated by strategically using data that consumers willingly share with retailers, such as their past purchases and browsing history. For instance, when consumers click on targeted ads or allow cookies to track their online behaviour, they enable retailers to tailor their marketing efforts. In return, consumers expect a more personalized shopping experience aligned with their interests.

Katie Bolla

Partner, Management Consulting, GTA Consumer and Retail Industry Lead

KPMG in Canada

mail
call

42% of consumers aged 18-44 say they sometimes engage with personalized marketing content.

28% of consumers 45 plus say they sometimes engage with personalized marketing content.

Even though deals – and specifically percentage off discounts – are a major driver of consumer behaviour, loyalty is still important. Whether it’s digital points on groceries or collecting stamps for a free coffee, 90% of survey respondents belong to a loyalty program, while 38% say they are very or extremely influenced by these programs. However, 41% of shoppers still say loyalty programs only have a moderate influence on their buying behaviours.

This means it’s imperative that retailers understand their customers and what influences their loyalty, and there is no one-size-fits-all approach. For some it’s feeling part of a community or buying from a retailer that aligns with their values. It might also be knowing that a store has great product inventory or that the service provided is consistent and efficient during a purchase. Whatever it may be, having clear and purposeful customer value propositions is key.

It’s also important to recognize that loyalty programs serve a dual purpose: they not only influence purchasing decisions but are also designed to capture valuable data. This data enables retailers to develop personalized marketing strategies for their customers, including tailored shopping experiences, targeted deals, and product innovations. As data silos diminish and retailers begin to share information across their various lines of business, increasing loyalty through personalized marketing becomes even more critical.

Our survey also found that shoppers are willing to interact with personalized marketing, especially younger consumers, with 42% of those aged 18 to 44 saying they “sometimes” engage with targeted marketing. Nearly 30% of consumers 45 plus say the same. These interactions are facilitated by strategically using data that consumers willingly share with retailers, such as their past purchases and browsing history. For instance, when consumers click on targeted ads or allow cookies to track their online behaviour, they enable retailers to tailor their marketing efforts. In return, consumers expect a more personalized shopping experience aligned with their interests.

For now, a lot of us see the same content, but the aspiration is to get to greater personalization, which would mean you would see something different than me — products, offers, even imagery more suited to your needs.

Katie Bolla

Partner, Customer Practice & GTA Consumer and Retail Industry Lead

KPMG in Canada

Empowering the workforce

One critical area that requires improvement is the interaction between employees and consumers. This is where breaking down data silos can play a significant role. Currently, only two out of five shoppers feel store staff can answer their questions effectively. This is especially evident in stores selling more technical products. Within computer and electronics retailers, 48% of consumers say that more knowledgeable staff would improve their shopping experience, while 41% and 40% said the same about home improvement and auto supply retailers, respectively.

Part of the problem may be that staff don’t have enough information to effectively help customers. Our survey found that 78% of respondents agreed or somewhat agreed that their shopping experience would improve if staff were equipped with data-driven tools, such as inventory management, customer feedback tools, loyalty program information, and digital chat bots. More insightful, however, is that a resounding 90% of respondents said they would return to a store where they’ve received exceptional service from knowledgeable staff.

To that end, a little technology can go a long way. Equipping staff with tablets that are integrated with real-time inventory data and can quickly bring up a customer’s personalized information, would help consumers get products and personalized help faster. Additionally, offering self-checkout options could enhance the shopping experience by reducing wait times for consumers who prefer efficiency and do not need support from a store employee. This is particularly relevant for younger demographics, with 57% of individuals aged 18 to 44 expressing a desire to complete purchases via a mobile device versus waiting in line, compared to 35% overall.

Providing diverse customer service options are important, too, especially among younger clientele. For instance, while respondents across all age groups prefer in-store assistance, 19% of shoppers aged 18 to 44 said they prefer to receive assistance from store employees online via chat or messenger, compared to 6% of those 45 and older. As for improving staff knowledge, incorporating artificial intelligence and other data tools into training or day-to-day processes could enable employees to learn about products quicker, resulting in faster service.

78% of consumers agree or strongly agree that employees equipped with data-driven tools (i.e. inventory management systems, customer feedback tools, loyalty programs, digital chat bots) can improve their shopping experience.

90% agree or strongly agree they would return to a store where they’ve received exceptional service from knowledgeable staff.

86% agree or strongly agree that they are more likely to choose retailers who effectively manage inventory and minimize stockouts (employees have access to real-time or up-to-date inventory data).

Using AI, clienteling solutions and other technologies to support employees will help staff feel more empowered, motivated, and productive, while creating a better experience for customers.

Katie Bolla

Partner, Customer Practice & GTA Consumer and Retail Industry Lead

KPMG in Canada

Privacy and customer expectations

If companies are going to deliver better in-store and online experiences for their customers, they’ll need to find more effective ways to use the data they’re already collecting. This involves integrating the data across their organization – into sales, marketing, product development, and more – and ensuring it is accessible to the right people at the right time, whether that’s sales associates, managers or even customers who want to know more about their purchasing history.

The challenge, however, lies in how retailers can use and protect personal information, which is a significant part of their data, in a way that aligns with customers’ comfort levels, without minimizing the data’s utility. Our survey found that 49% of respondents are very concerned about the privacy of their personal information being shared with retailers. Interestingly, consumers between the ages of 18 and 44 appeared to be less worried, with only 39% expressing concerns over the personal information they’ve provided.

A good example of that is storing credit card information on retailers’ websites. 44% of those over 45 say they no longer store their information there, while only 30% of those 18 to 44 said the same. Similarly, 53% of those over 45 said they are extra careful shopping online out of fear that their personal information may get hacked or stolen; compared to only 36% of people 18 to 44 who had the same response.

Balancing trust and privacy

^{Source: KPMG in Canada, 2025 Canadian retail survey}

These numbers clearly indicate that retailers need to improve on establishing trust with their customer base. Customers are generally more inclined to share their personal information when they feel properly informed and trust the businesses they engage with.

Trust is built by being transparent about why the personal information is needed, what it is specifically used for, how it is used, and how it is protected and responsibly managed. For instance, retailers might profile their customers who participate in loyalty programs by merging their offline shopping behaviors with online activities to optimize targeted advertising and personalized offers. Such practices must be communicated clearly to customers, allowing them to make meaningful choices about their participation.

That also means retailers must do as they say they do. This includes implementing robust processes and security measures that align to the promises they are making to their customers. Regularly reviewing these applied practices is essential to adapt to the ever-changing expectations of customers.

Another important component is the ability to quickly react and address any customer concerns related to their personal information. This could include facilitating a request to be removed from a loyalty program or for the customer to be provided access to the information the retailer is holding about them.

Building sustainable and long-term customer trust means having a respectful, transparent, and human-centric approach to handling and using their information. The customer expectation of excellent service does include the digital space too.

Oskar Trpisovsky

Senior Manager, Risk Consulting, Privacy Lead

KPMG in Canada

87% of consumers agree or strongly agree retailers aren’t doing enough to protect their personal and financial information from cyber criminals.

73% agree or strongly agree they no longer store their credit card information on retailers’ websites due to recent high-profile cyber breaches.

91% agree or strongly agree retailers should be more transparent in how they protect and store their personal information.

Creating an omnichannel experience

Ultimately, a more omnichannel and interconnected experience that integrates online and in-store shopping is the future. Companies must put the customer experience at the centre of what they do and create seamless integrations between all aspects of the modern shopping experience. That’s more than in-store and online – it’s on social, mobile, instant messaging, home delivery, and even the parking lot for those who want their purchases brought to their cars. It’s already happening outside of North America – in China, for instance, social commerce has exploded.

Companies must step outside of the box and think big, especially when it comes to emerging technologies. Generative AI, for instance, is making it much easier for consumers to ask detailed questions about a product or a service. In the U.S., some brands and retailers accept alternative payment options, such as Venmo; other companies are using holographic displays to feature products.

Data will be critical to making all of this happen. There should be no silos between an in-store customer and a person who shops online– information must be shared and utilized at all points of the customer journey – in emails, text messages, kiosks, and other digital screens whether it be at someone’s kitchen table or the moment they walk into a store.

What’s most important, is that retailers have a solid understanding of their brand and their customers.

Key takeaways

The retail landscape in Canada continues to demonstrate resilience and adaptability, even in the face of numerous challenges over the years. While the integration of technology into daily retail operations is rapidly increasing, our survey reveals that a significant number of Canadians still value the in-store experience, underscoring the significance of tactile interactions and immediate product access. Here’s how retailers might consider moving forward:

Retailers should recognize the generational differences in shopping preferences, with younger consumers being more comfortable with online shopping, while older demographics favour traditional retail environments.
Retailers should adopt a flexible, omnichannel strategy that seamlessly integrates digital tactics into both online and offline experiences.
Retailers should prioritize inventory management, as customers demand a more seamless omnichannel experience, singling out product availability as a key factor that would make them shop more online.
Retailers should proactively anticipate future trends and customer expectations by engaging directly with their customers.
Retailers should provide employees with more tools, including real-time data and emerging technologies, to empower workers with more product knowledge and customer information, creating a satisfactory customer experience without neglecting their privacy.
Retailers should understand what customers really want and create a more tailored experience for their specific customer base.
Retailers should focus on creating more personalized experiences, given deals are important drivers of customer behaviours. Enhancing personalization could help boost brand loyalty and, ultimately, sales.

How can KPMG help

The professionals in KPMG in Canada's Consumer and Retail Practice combine deep industry knowledge with extensive experience working with clients in the retail sector, plus the food, beverage and consumer products and restaurant segments. We are committed to collaborating with our clients to develop strategic steps for successful business transformations, enabling them to adapt to and capitalize on the trends emerging from today's rapidly changing environment.