More online shoppers buying Canadian Hello ADX longs,
Picked up the following article on the Toronto Star today, which bodes well for ADX's future. Michael Szego, one of the gentlemen quoted in the article, also spoke of this on Prime Buisness last night.
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More online shoppers buying Canadian
Web purchases this year could surpass $4 billion
By Susan Pigg
Toronto Star Business Reporter
The ``shop Canadian'' movement has hit cyberspace.
In just a year, the number of Canadian online shoppers buying from Canadian sites has more than doubled from 28 to 58 per cent, while those shopping at U.S. sites has dropped from 62 per cent to just 37 per cent.
With online shopping by Canadians expected to more than double to $4.1 billion this year from $1.65 billion last year, those patriotic mouse clicks could prove to be highly profitable for Canadian retailers.
``It's not just a cost issue or trying to get past the hassles of the exchange rate or the duties. People want to shop Canadian,'' said Chris Ferneyhough, senior research manager with Angus Reid Group.
Eighty-three per cent of those who shop online said they always or sometimes look for a Canadian site to buy from first, said Ferneyhough.
While concerns about security and privacy remain major barriers to even higher levels of online spending, the study shows a ``second wave'' of Internet users - those who've been online less than two years - now feel comfortable enough to become cyber-consumers.
Many others, about 37 per cent of the 1,125 Web surfers questioned in March, say
they still aren't prepared to buy an item without seeing and touching it first. Instead,they use the Internet to find the best price and then drive to the store rather than punch their credit card number into a computer, said Ferneyhough.
A big part of the growth can be attributed to the fact Canadian retailers, especially major chains like Sears Canada, Future Shop and music store HMV, have developed a strong online presence, said Michael Szego of J.C. Williams retail consulting group,which is working with Angus Reid to track Canadian Internet use.
``There are an awful lot more Canadian e-retail buying opportunities now than there were a year ago, so I think it's natural that we'll see this trend continue going forward as we see more Canadian retailers get online or get better offerings online,'' said Szego.
Sears Canada, for instance, did $20 million in online sales last year but expects an almost tenfold increase this year, to between $170 million and $200 million.
The fact Canadians clearly prefer to shop at home should put retailers here in a
stronger position to fight off major U.S. companies like eBay Inc., said Szego. It recently opened a Canadian version of its gigantic online auction site that offered trade in Canadian currency and shipping within Canadian borders.
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Looking forward to a great week!