The Canada Factbook - Interesting Facts and Factoids every US Retailer should know about Canada

1. THE
CANADA
FACTBOOK
Interesting Facts and Factoids every
US retailer should know about Canada

2. Introduction
So, what’s special about Canada? Is it that 21% of Canadians
speak French? Or maybe it’s that they live an average of
3 years longer than Americans? Or are they special because
they eat more donuts than any other country?
We’ve taken a light-hearted approach in presenting some
facts about Canada to get you thinking about what it means
to be Canadian but as we’re sure you know, entering a new
market is serious business for retailers. And we take that seriously.
So, if you’re planning to enter the Canadian marketplace,
Watt International can help you translate your brand
proposition and provide your business with the insights and
strategic tools that will enhance your brand’s impact at every
touch point.

3. 80% of Canadians live
less than 155 miles from
the US border.
The proximity of Canada’s
s h o p p e r s has many positive
imp l i c a ti o n s for US retailers,
including a predisposition toward
American brands built in part on
a long legacy of cross-border
shopping.
2

4. Canadian E-commerce
spending is forecasted
to double by 2015.
In 2010, Canadian shoppers spent
an average of $1,600 each on goods
and services online, spending $457
more than online shoppers in the US.
As online shopping continues to
grow in Canada, it is becoming
increasingly important for retailers to
integrate their online presence with
all the other marketing touch-points
of their business.
5

5. Canada’s got more lefty
hockey players!
The majority of Canadian hockey
players shoot left-handed, while the
majority of American players shoot
right-handed.
Some hockey stick manufacturers in
the US say that up to 70% of their
lefty stock goes to Canada, while
only 30% of the left-handed sticks
get distributed to players in the US.
6

6. 21% of Canadians “parlent
français” (speak French…)
In the province of Quebec all
exterior signage and consumer
goods packaging must be in
French by law, while in many
regions outside Quebec, all
packaging must be bilingual.
9

7. Canada is the
second-largest country
in the world by land mass.
The population density in Canada
is low, at 6 people per square mile,
compared to 55 in the US. Much like
Americans, 81% of Canadians live in
large urban areas and cities, the
largest 3 cities in Canada being
Montreal, Toronto and Vancouver.
Retailers in both countries focus on
maximizing urban presence by
adapting their stores to formats that
suit the needs of the urban shopper.
10

8. Canadian moms are
global leaders when it
comes to the environment!
Over 69% of Canadian mothers
recently surveyed said they cared
about the environment, compared
with 45% of American mothers. Forty-
three percent of Canadian moms
also said that they had stopped
buying brands they felt were not
ecologically friendly.
Companies in Canada must be alert
to sensitivities around corporate
responsibility and stay in touch with
the demands of their shoppers.
13

9. Like the US, Canada has
large ethnic groups but
with key differences.
In the US, Hispanics make up about
16% of the population. In Canada,
they represent less than 1%. The largest
ethnic group in Canada is South Asian,
representing 28% of the total visible
minority population. As in the US, the
concentration of ethnic groups in
different regions in Canada can
affect the use of color, merchandising,
diversity of product, signage and
other features of retail.
14

10. The federal corporate tax
rate in Canada is almost
half that of the US.
In recent years, the Canadian
government has supported
businesses by reducing federal
corporate taxes, which are now
at 16.5%. This rate is expected to
fall even further in 2012, to 15%. In
the US, the top federal corporate
tax rate is 35%.
17

11. Both Canada and the
United States have a
home ownership rate of
approximately 67%.
Despite this similarity, 2.2% of all
housing units in the US received at
least one foreclosure notice in 2010,
while less than half a percent of all
Canadian mortgages were in
arrears in 2010. The stability of the
housing market in Canada is one
of the factors that help to maintain
consumer confidence in the
economy. The Canadian consumer
confidence index was 83.7 in
March 2011; in the US it was 63.4.
18

12. Canadians spend more
than Americans on private
brand products.
Per capita, Canadians spent
$334.99 on private brands in 2010,
while their US counterparts spent
only $287.32. Private brand dollar
share of CPG sales in Canada was
18.1% in 2010, versus 17.1% in the
US.
21

13. 54% of Canadians believe
there will be good times
ahead for the Canadian
economy in the next 5 years.
Canadian consumers feeling good
about the future of the economy
is a positive sign for US retailers
entering the market.
22

14. Canada did not become
an independent nation,
autonomous from British
rule, until 1931.
One indication of our nostalgia for
Britain is our love for the British soap
opera, Coronation Street. It is the
longest running drama on Canadian
television, and although the show
never caught on in the US, one in
five Canadians watched at least
one episode in 2010.
25

15. Canadians love surfing
the Net and spend
more time online than
any other country.
In 2010, Canadians averaged
43.5 hours per month online, while
Americans averaged 35.3 hours.
Canadians also visited on average
95.2 different websites per month,
15 more than their US counterparts.
26

16. There are more donut shops
per capita in Canada than
anywhere else in the world.
Canadians consume more donuts
than any other country — typically,
they are consumed with one of
Canada’s most popular beverages,
coffee, which accounts for about
16% of beverage sales.
29

17. Developed in 1958, Canadian
Tire “money” — paper bills
that act as credit toward
purchases in denominations
of 5¢ to $2 — is Canada’s
longest-running customer
loyalty program.
85% of Canadians live
within a 15-minute drive
of a Canadian Tire store.
30

18. In Canada, it’s often a
handful of retail chain
players that represent the
lion’s share of sales in one
category.
In the supermarket channel, the top
three companies, Loblaw Co. Ltd.,
Sobeys Inc. and Metro Inc. had sales
of $57 billion in 2010, representing
nearly 70% of total food store sales.
For retailers looking to uncover
opportunities for expansion into
Canada, it is important to
understand how the dominant
retailers operate their banners.
33

19. With 5.4 million people,
Toronto has the highest
population of all cities
in Canada.
Toronto is the 6th largest city in
North America. Opening a store in
Toronto gives retailers access to a
population base comparable to
Philadelphia (5.6 million).
34

20. Canada’s unemployment
rate is 7.8%*, compared
with the US rate of 8.9%.
Canada’s employment rate has
been quite stable in recent years,
and the Canadian government
predicts that the unemployment
rate will remain around 7% until 2012.
Indications of stable employment
rates in Canada point to a prosperous
economy and continued spending
among its consumers.
*as of March 2011
37

21. Canadians spell like the Brits!
Much of the Canadian written
language abides by British spelling
rules; words like center, neighbor
and labeling are spelled “centre,”
“neighbour,” and “labelling”, in
Canada. Businesses moving into
Canada will need to alter
packaging and c o m m u n i c a t i o n
materials to accommodate
subtle but important differences
in how Canadians spell.
Anyone for the “theatre”?
38

22. Canadians are very
open to ethnic diversity.
While only 77% of
Americans approved
of interracial marriage,
92% of Canadians are in
favor of such unions.
Canada generally has a rich
culture of racial integration. This
is reflected in the wide array of
multicultural retail offerings in
Canada’s major cities.
41

23. Watt International Sources
Who we are and what we do
We are a truly integrated retail agency, with over forty years ∙ PAGE 2: Facts about Canada, ∙ PAGE 22: Canadian consumers upbeat on
experience in over forty countries around the world. Working Niagara Falls Tourist Guide online site finances, economy, Harris/Decima-Inves-
collaboratively with our clients, we use research to help PAGE 5: J. Grau, Canada retail ecom- tor’s Group Measure of Consumer
merce forecast: Measured Growth Ahead, Confidence, Harris Decima, March 8, 2011
uncover the most meaningful insights, set the right strategies,
and deliver results-oriented creative solutions across every eMarketer, February 2011; Research and ∙ PAGE 25: D. Groen, Craving Corrie, The
Markets: Canada B2C E-Commerce Report Walrus, January/February, 2011; L.
brand touchpoint. 2011, Business Wire, March 15, 2011 Grainger, After 50 years, Coronation Street
∙ PAGE 6: J. Klein, It’s not political, but more still strangely popular, Toronto Life,
We eat, sleep and breathe retail. Through our integrated December 8, 2010; L. Barnard, Canadians
approach, our clients receive a single-source solution, Canadians are lefties, The New York Times,
February 15, 2010 love their Corrie, The Toronto Star,
efficiencies in account management, and a brand experience December 7, 2010; Dr. J.C. Robert,
that’s connected from the first insight to the last creative ∙ PAGE 9: CIA Factbook Canada in the Making, University of
expression. ∙ PAGE 10: About Retail; CIA Factbook Quebec, 2005
∙ PAGE 13: Canadian Moms global leaders ∙ PAGE 26: O.E. Akkad, Canadians’ Internet
If the pieces of your brand puzzle just don’t seem to fit, we’d when it comes to the environment, usage nearly double the worldwide
love to talk with you. Our single-source, best-in-class, integrated Canada Newswire, Natural Marketing average, The Globe and Mail/Comscore,
Institute, P&G, March 30, 2011 March 8, 2011
retail model works, and we can show you how.
∙ PAGE 14: A. Jones, One-Third of Canadians ∙ PAGE 29: My Canada Includes Tourtiere,
will be Visible Minority by 2031: StatsCan, The Unofficial Sugary Snack, CBC Digital
City TV/ The Canadian Press/Statistics Archives, broadcast date: September 1,
Canada, March 9, 2010; C.Joseph, Census: 1994
research insight strategy innovation creative Nation now 16% Hispanic, National ∙ PAGE 30: Answers.com; Collectors cherish
Journal, March 24, 2011 Canadian Tire Money, The Star Phoenix,
∙ PAGE 17: L. Whittington/ S. Delacourt, Saskatoon, April 25, 2007
Tory tax cuts could trigger election, ∙ PAGE 33: Canadian Grocer Executive
January 27, 2011; Elections Canada Report, Canadian Grocery Industry
∙ Consumer + Shopper ∙ Brand Positioning ∙ Brand Name, website; V. Krishna, The tax rate debate, 2010-2011, Canadian Grocer & Kraft
Research Identity + Guidelines The National Post, March 21, 2011 Foods, 2010
∙ Marketing Strategies
∙ Financial Analysis ∙ Retail Design ∙ PAGE 18: P. Viera, Mood of Canadian and ∙ PAGE 34: Statistics Canada; CIA Factbook;
∙ Channel Strategies US consumers darken, Financial Post, Pocket World in Figures, The Economist,
∙ Stakeholder ∙ Product + ∙ Package Design March 29, 2011; Mortgages in arrears, 2011
Interviews Canadian Bankers Association as of
Merchandise ∙ Merchandising + ∙ PAGE 37: B. McKenna, Top Challenge for
∙ Trends + Innovation Strategies POP Displays January 2011, March 2011; Record 2.9
million US properties receive foreclosure next government, The Globe and Mail,
Reports March 23, 2011; T. R. Homan, US Economy:
∙ Private Brand ∙ Integrated filings in 2010, despite 30-month low in
∙ SWOT + Best Architecture Communications December, RealtyTrac, January 12, 2011; Unemployment rate unexpectedly
Practice Analysis declines, Bloomberg Businessweek, March
∙ Business + Strategic ∙ Brandvertising TM US Housing Vacancies and Homeowner-
4, 2011
∙ Need State + Path Planning ship, US Census Bureau, Wikipedia
∙ Web, Mobile + ∙ PAGE 41: Majority accepts mixed
to Purchase ∙ PAGE 21: The Nielsen Company, Nielsen-
∙ Management Social Media
marriages, August 29, 2007, The Vancouver
Modeling wire, Insights On The Changing State Of
Consulting ∙ Total Production Canada’s Private Label Consumer, October Sun
∙ Performance Management 19, 2010; CIA Factbook
Measurement (KPIs) ∙ Value Engineering
43

24. Watt International Inc.
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