At least 26 per cent of Canadians looking for deals this weekend but many Canadian businesses uncertain about the benefits of participating
TORONTO, Nov. 26, 2014 /CNW/ - Millennials are more than twice as likely to go shopping or buy online over the Black Friday/Cyber Monday weekend than older Canadians, finds a new CIBC (TSX: CM) (NYSE: CM) poll. However, a separate poll of retail business managers suggests many do not see the value of this shopping phenomenon.
Key findings of the two CIBC polls include:
- 26 per cent of Canadians plan on shopping either online or in-store during the Black Friday/Cyber Monday sales period this year
- Among 18-34 year olds, 47 per cent plan on shopping, compared to 18 per cent of the 35+ age group that will look for deals
- 32 per cent of Canadians haven't decided yet if they are going to shop or not
- 37 per cent of Canadians generally think the deals they find during the Black Friday/Cyber Monday sales period are worth the time they spend shopping
- 56 per cent of 18-34 year olds think the deals are worth the time spent, compared to 30 per cent of the 35+ age category
- 16 per cent of retailers say they like Black Friday/Cyber Monday
- 24 per cent of retailers plan to, or are considering, discounting their products for Black Friday/Cyber Monday this year
"Black Friday and Cyber Monday is a fairly new phenomenon in Canada," says Shelley Swanlund, Vice President, Business Banking and Head of Small Business, CIBC. "While overall Canadians are not as geared to this shopping ritual as Americans are, millennials are increasingly focused on Black Friday and Cyber Monday and Canadian retailers need a strategy to target these shoppers, who are in the prime consumer demographic."
Retailers not embracing Black Friday/Cyber Monday phenomenon
Most Canadian retail business managers surveyed say they are not convinced that the Black Friday/Cyber Monday shopping phenomenon has a positive impact on their business. As many as 64 per cent of business managers feel it has no impact, with another 19 per cent seeing a negative impact.
"Certainly, given the interest shown by millennials, some Canadian retailers may be missing an opportunity to increase their sales," says Ms. Swanlund. "While Canadian retailers can compete by lowering prices, they can also differentiate by increasing marketing and social media efforts, offering longer hours, having more inventory on hand, or improving customer service."
CIBC offers time-saving tips for shoppers:
- Spending Alerts - Services such as CIBC CreditSmart can help you stick to your budget. Free to CIBC credit card holders, CIBC CreditSmart allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.
- Pay in a Flash - Interac Flash can help make shopping for smaller items much quicker. Look for the contactless symbol and hold your CIBC Advantage Debit Card in front of the reader; when you hear a beep you're done. If you don't have an Interac Flash-enabled CIBC Advantage Debit Card, call us or visit a branch to get one today.
- Shop online - Avoid all the disappointment and stress of fighting through crowds and lines at the store by shopping online. You can have your order shipped directly to whomever you want and many retailers offer free shipping as well as gift wrapping services. When it comes to paying for your online order you can use your CIBC Advantage Debit Card to pay with money you have in your bank account.
- Save your card number - With the introduction of Visa Checkout you can save yourself the hassle of entering your payment details every time you order something. Simply create a user name and password and enter your payment and shipping information once. From that point on you can speed through your online purchases at any retailer that uses Visa Checkout.
KEY POLL FINDINGS
Percentage of Canadians who plan on shopping either online or in-store during the Black Friday/Cyber Monday sales period this year, by age:
|Haven't decided yet||32%||28%||37%||28%|
Percentage of Canadians who think the deals they find during the Black Friday/Cyber Monday sales period are worth their time spent shopping, by age:
Canadian retail businesses' opinion on the impact of Black Friday/Cyber Monday to their business:
Percentage of Canadian retail businesses that plan to, or are considering, discounting their products or services for Black Friday/Cyber Monday:
From November 7th to 10th 2014, an online survey was conducted among 1,505 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.53%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
The business poll was conducted by Leger through a Web survey conducted from September 15 to October 3, 2014 among a representative sample of 301 managers in retail businesses, of all sizes, located in Canada, not being affiliated to a US-based company, and excluding franchises. Using data from Statistics Canada, the results were weighted according to business size (number of employees) and region, to ensure a sample representative of the entire population under review. The associated margin of error for a probabilistic sample of the same size is +/-3.47%, 19 times out of 20.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Wholesale Banking - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
For further information:
Caroline Van Hasselt, Director, External Communications, 416-784-6699 or [email protected]