New GMDC whitepaper outlines Canadian retail opportunity

COLORADO SPRINGS, Colo. — The Global Market Development Center on Thursday released a new whitepaper based on a GMDC*Connect Videocast, “Canadian Retail Outlook: The Next 18 Months and Beyond,” presented by Tim O’Connor, VP RetailNet Group, that explores external drivers of change predicted to significantly impact Canadian retail. 

 

Understanding these drivers and their implications in light of a number of recent retailer shutdowns in Canada will help retailers and suppliers organize strategies to compete and win in the intensely competitive, slow growth retail market, GMDC stated. O’Connor’s forecast reveals that total chain sales in Canada will jump from $239 billion in 2013 to $280 billion by 2017. Of that growth, 55% will be driven by same-store sales and 12% will be generated from digital growth, which will grow four times its share rate. 

 

In keeping up with rising digital trends, Canada is now seeing the emergence of the click-and-collect model. Overwaitea’s Save on Foods in Vancouver and Loblaws in Ontario are two retailers that have incorporated click-and-collect and are hoping to expand the initiative quickly throughout Canada. Walmart will surely be close behind.



“Digital economics can be challenging as retailers are taking on tasks that were historically done by the consumer and absorbing newly added costs into their model often with low to no compensating fees,” O’Connor said. “Consumers will continue to demand these services making optimizing digital retail economics a key focus area for both pure play retailers and store based operators.”