Fewer Canadians are taking advantage of Black
Friday deals across the border this year
MISSISSAUGA, ON, Nov. 19, 2015 /CNW/ - Canada-U.S. border officials are set to see a
marked drop in the volume of southbound traffic during the U.S.
Thanksgiving weekend as Canadian
consumers change their purchasing habits. UPS Canada's annual Black Friday survey conducted
by Leger shows that fewer Canadians are taking their holiday
shopping list cross-border for U.S. Black Friday deals.
This U.S. Thanksgiving, the number
of Canadians who are likely to buy goods from the U.S, either
online or by cross border shopping, has dropped by 22 per cent
since 2014 (37 per cent vs. 29 per cent in 2015). Shoppers are
aware of the economy and among consumers unlikely to purchase from
the U.S. during Black Friday, the unfavourable exchange rate (56
per cent) is listed as the top reason. On par with 2014, consumers
unlikely to shop in the U.S., prefer to shop Canadian (39 per cent)
and one quarter highlight that local retailers are offering Black
Friday sales (26 per cent).
"In the past, we've seen Canadian consumers flock across the
border to take advantage of Black Friday deals, but this year 84
per cent are unlikely to cross-border shop," said Craig Calvert, director of customer solutions,
UPS Canada. "The market is changing and Canadian retailers have an
opportunity to take advantage of consumer's preferences to shop
local by offering aggressive Black Friday deals to keep and grow
their market share in Canada. As
Black Friday continues to gain momentum north of the border,
retailers will be forced to participate in the price slashing to
meet consumer expectations, especially among Millennials who are
most likely to shop south of the border."
Today's consumers are big online shoppers and 85 per cent of
Canadians shop online, especially from the comfort of their home
office (32 per cent) and living room (29 per cent). On par with
2014, one-third of shoppers will use an e-commerce site of a
Canadian retailer to benefit from Black Friday sales (34 per
cent).
Millennials between the ages of 18 and 34 are most likely to
purchase online or cross border shop with U.S. retailers. Consumers
who plan to purchase from U.S retailers during Black Friday expect
to save on average $168, which is
significantly less than the expected savings in 2014 ($249). Holiday gifts don't appear to be a
priority as more than half of Canadian consumers (54 per cent) will
shop this U.S Thanksgiving to
purchase goods for themselves compared to a partner or spouse (34
per cent).
To maximize the potential for long-term gain, particularly
amongst online consumers, retailers will need to pay careful
attention to the post-purchase experience. Canadian online shoppers
highlight that their online shopping experience could be made
better through:
- Transparent shipping fees (70 per cent)
- Transparent duty fees (53 per cent)
- Text or email alerts of shipment status (34 per cent)
- Pick up of packages at a convenient location (27 per cent)
These conveniences are now being offered through the UPS
My Choice™ service and UPS Access
Point™ locations which were launched in 2014. UPS My Choice service is a new home delivery option
that will enable busy consumers to conveniently control and manage
their incoming package deliveries to fit their busy lifestyles. The
service, combined with approximately 900 UPS Access Point locations
across Canada, will alleviate many
consumer concerns related to shipping, including missing packages,
worrying about packages left outside, trekking to a depot to
retrieve missed packages, waiting all day for a package or counting
on others to sign for a package.
World-wide, UPS expects to deliver more than 630 million
packages between Black Friday and New Year's
Eve, an increase of more than 10 per cent over holiday
deliveries last year. In addition UPS predicts to deliver 36
million packages globally on its peak day of Dec. 22.
UPS Canada has increased its
sort and delivery capacity in preparation for high volumes over the
peak holiday season. This includes approximately 200 new package
cars, expanded domestic air capacity and next-generation sorting
capabilities in Toronto,
Calgary and Vancouver.
"Black Friday is the kick-off to our peak season, which is an
important time for UPS and our customers," says Craig Calvert. "Our planning, investments and
lessons learned from previous years has ensured we are prepared for
the upcoming holiday season."
Leger Survey Methodology:
This survey was completed
online from September 28 to October 1,
2015 using Leger's online panel, LegerWeb, with a
sample size of 1,540 Canadians. A probability sample of the same
size would yield a margin of error of +/- 2.5%, 19 times out of
20.
About UPS:
UPS (NYSE: UPS) is a global leader in
logistics, offering a broad range of solutions including
transporting packages and freight; facilitating international
trade, and deploying advanced technology to more efficiently manage
the world of business. UPS is committed to operating more
sustainably – for customers, the environment and the communities we
serve around the world. Learn more about our efforts
at ups.com/sustainability. Headquartered in Atlanta, UPS serves more than 220 countries
and territories worldwide. The company can be found on the web
at ups.com® and its corporate blog can be found
at longitudes.ups.com. To get UPS news direct,
visit pressroom.ups.com/RSS.
SOURCE UPS Canada