National Post

B.C. leads in online shopping: survey

- Jake edmiSton Financial Post

Households in B.C. spend more online each year than households in any other province, according to new research on the e-commerce habits of Canadians.

The data — released to Financial Post by Environics Analytics and J.C. Williams Group — track the billions Canadians have been spending online in 2018 and predicts online grocery shopping will soon begin to challenge apparel.

The ClickSpend database found B.C. households each spend $3,369 online per year — more than $600 above the national average of $2,748. Alberta is in second, with at about $3,000 annually, followed closely by Ontario.

Quebec households spent the least online, at $2,336, though the ClickSpend report found Quebecers are ahead when it comes to groceries and alcohol. Nearly six per cent of groceries in Quebec are bought online — 20-per-cent above the average in Canada, the report said. It’s one of the distinct difference­s between provinces, cities and even neighbourh­oods highlighte­d in the report.

The ClickSpend data comes from a semi-annual survey involving three rounds of questions with 2,500 nationally representa­tive respondent­s in Canada. It focuses on 14 spending categories — from jewelry to garden supplies — that make up $343 billion in household expenditur­es this year, excluding services (from a total of $1.15 trillion in annual household expenditur­es). An estimated $41 billion of those $343 billion in purchases, or 11.9 per cent, will happen online, the report says. Clothing is the current powerhouse, with $7.8 billion in 2018 online sales, followed by food and grocery, with health and beauty close behind.

“Health and beauty products are another area that could see increased competitio­n from online retailers,” the ClickSpend 2018 report reads, adding that while Canadians are certainly comfortabl­e ordering beauty products online — projected to spend almost $6 billion — the online spend share “is only 13 per cent” of purchases made in the category.

“Grocery will be the category to watch,” the report said, adding that its $6.4-billion in online sales represent only five per cent of the total grocery spend. “The category could easily eclipse clothing.”

The ClickSpend report also tracks online shopping by demographi­c, splitting the population into 68 “lifestyle types.” Consider the Urban Digerati: “Characteri­zed by younger households with upper-middle incomes,” they tend to order furniture, health and beauty products, toys and games online at a higher rate than average.

But certain suburban segments can spend just as much. The “Trucks and Trades” type, for instance — upper-middle class suburban families in cities like Red Deer, Regina and St. John’s — spends as much as the Urban Digerati, but their purchases are vastly different — with auto parts and sporting goods among their most frequent purchases.

GROCERY WILL BE THE CATEGORY TO WATCH. THE CATEGORY COULD EASILY ECLIPSE CLOTHING.

 ?? BEBETO MATTHEWS / THE ASSOCIATED PRESS ?? A survey finds Canadians have spent an average of $2,748 this year in online shopping.
BEBETO MATTHEWS / THE ASSOCIATED PRESS A survey finds Canadians have spent an average of $2,748 this year in online shopping.

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