Canadian Retailer - Fall 2016 - 27

E-COMMERCE

caters to the busy mom, who is looking for simple solutions. Giving this target customer more choice and more options online, results in a win-win for everyone. Take patio sets. While Walmart
only carries a few different models in store because of space, this
is an item that is better to purchase online where there is more selection and the retailer can ship it directly to your front door. "It's
cheaper, we have a broader assortment and you can pick the right
set that meets your needs and you don't have to worry about how
to get this product home from the store," Newman explains.
Walmart Pay is another innovation that is related to e-commerce, albeit not directly. Walmart Pay allows in-store shoppers
to have an e-commerce like experience. Neuman explains: "They
get to check out at a physical store, but instead of paying with their
wallet, they can use the scan and go app which we launched in
the U.S. at all of our Sam's
"Our satisfaction rates for
Club locations. Customers
pay for their groceries on
this program [Grocery Home
their phone using the app
Shopping] are incredibly
and then they can skip the
high. More and more people
line-up at the checkout.
are making that their weekly
"This is a huge timesaver,"
grocery shop so they can skip he adds. "If you just want
going into the store and save
to come in to our stores
more time."
and scan, buy, and walk out
- RICK NEUMAN
without lining up, this is a
Walmart Canada
great solution."
Walmart is currently looking to bring the scan and go feature
to Canada, but they don't have a timeline for its implementation
yet. Walmart Pay has been rolled out to all stores in the U.S. and
the retailer is evaluating when the right time is to bring this offering to Canada. Watch for a pilot of the scan and go app in the
not-too-distant future.
Grocery Home Shopping

One other exciting program that is starting to roll out right
now in the Toronto and Ottawa markets-and where Walmart
is looking to expand to other regions in the future-is Grocery
Home Shopping. The innovative e-commerce solution lets customers buy groceries online and then pick them up at their nearest store the next day in the time slot they choose. "All the items
are picked fresh that day and you get the best possible produce
within five minutes of your call," says Neuman. "You arrive in
the parking lot and within five minutes you can get on your way.
Our satisfaction rates for this program are incredibly high. More
and more people are making that their weekly grocery shop so
they can skip going into the store and save more time."
Another successful and creative e-commerce solution Neuman
cites is the company's subscription program. Take a sku you buy
regularly, for example, diapers are one of the more popular items
for Walmart customers. You can then add a subscription for this
product and the retailer will send you that sku once every week
or month, or at whatever time period you set, so you don't have to
worry about running out of the item. "We offer a savings of five
per cent when a customer commits to long-term ordering of this
subscription service," says Neuman. "It saves the customer time
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THE RISE OF E-COMMERCE

E-commerce sales by Canadian retailers
in 2012 totalled $7.7 billion, up from
$6.6 billion in 2011.

+16.3%
+2.9%
16.3% - Retail e-commerce sales grew
at over five times the pace of overall
growth (+2.9%)

TOTAL RETAIL
SALES

1.5% - of total retail
sales in 2012 were made
through e-commerce

2012

Source: Statistics Canada

and money, which is awesome!"
Whether it's about saving customers' time,
money, or just a matter of convenience and allowing the seamless one-stop shop most people
want in today's hectic world, Walmart, Canadian Tire, and other leading retailers are constantly looking at other ways to bring innovation to Canadian consumers.
To illustrate the rising importance of e-commerce, look no further than the fact that Stats
Canada is in the process of developing a new
data product to measure retail e-commerce in
Canada on a monthly basis-specifically the online sales of retailers based in Canada. The data
is still in development and will not be published
until late 2016 at the earliest. Once complete,
Stats Canada will include this e-commerce data
with the publication of results from the Monthly
Retail Trade Survey.
So, what does the future of e-commerce look
like? According to Neuman, it's a landscape
marked by major growth.
"Retailers have the opportunity to reach new
and potential customers, increase their service
and offering to existing customers and grow the
strength of their brand. Today the e-commerce
incentives far outweigh the deterrents."

FALL 2016 | CANADIAN RETAILER

| 27

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Table of Contents for the Digital Edition of Canadian Retailer - Fall 2016