Quebec Retail: The Shift to Digital

Online shopping benefits consumers, but it also creates challenges. As consumers increasingly buy through transactional websites, Quebec retailers must compete in a global market that includes Amazon and Chinese websites offering products at very low prices.

That challenge prompted the Conseil québécois du commerce de détail (CQCD) to propose an action plan to help Quebec retailers make the digital transition.

Léopold Turgeon, President and CEO of the CQCD, explains the current challenges facing retailers and discusses the Virage numérique des détaillants québécois program.

Leopold Turgeon – From the sale of blueberries to Loto-Québec

Léopold Turgeon is a self-taught, passionate leader from Saguenay–Lac-Saint-Jean who entered the retail sector at a young age. “It started with selling blueberries, then milk and beer, before I eventually held positions of responsibility at Loto-Québec for 27 years,” he says.

After a long career at Loto-Québec, Léopold Turgeon took on a new challenge by joining the Conseil québécois du commerce de détail (CQCD). He wanted to support entrepreneurs who take risks every day and create jobs. He had been with the CQCD for nearly six years at the time of the interview.

The Conseil québécois du commerce de détail is a leading voice for Quebec retailers. Its mission is to represent and promote the sector and support its members’ growth. The organization brings together more than 5,000 businesses and represents nearly 70% of Quebec’s retail economic activity.

Retail trade in Quebec in figures

Retail sales grew by 6% in 2017 and 4.5% in 2018. However, much of the price growth came from automobiles and gasoline, which together represented 40% of retail activity. Léopold Turgeon noted that higher fuel prices can lead consumers to reduce spending on products such as clothing and perfume.

Today, Quebec retailers find themselves competing, not with each other, but in direct competition with major foreign players. We are talking about retail giants like Amazon that manages to reach the consumer, delivering the products in record time and at competitive prices. Digital is becoming a crucial issue for Quebec retailers.

Some annual figures

• Online shopping for Quebecers outside of Canada is $3 billion;

• 80 million packages delivered to Canada come from the USA;

• 40 million of the packages delivered to Canada come from China.

For the past 25 years, online shopping has literally exploded. One learns from a CQCD survey that in Quebec, 71% of online purchases were made on Amazon during the holiday season. Moreover, one of the main demands of the CQCD is to have greater equity between Quebec traders and foreign online businesses that pay less taxes.

The Digital Shift for Quebec Retailers

The CQCD offered small retailers personalized support to help them make the digital transition. In partnership with Quebec’s Ministry of Economy, Science and Innovation, the project aimed to help 1,325 Quebec retailers begin selling online.

These businesses need practical guidance and support.

This situation prompted the government to provide the CQCD with $86 million for the 30-month project. At the time of the interview, 680 retailers had already enrolled.

About the Virage numérique des détaillants québécois program

A 3-step program

• The diagnostic stage: two days of work to analyze the store, detailing the number of products sold, the number of customers, but also determining the presence on social media, the number of subscribers and any details that can help start the program on the right foot;

• The stage of the meeting: where the CQCD meets with the business owner to propose an action plan;

• The training stage (two months later): which includes compulsory two-day training in digital development.

A total of 10 advisors were responsible for guiding retailers through the process. The program reviewed sales every quarter to measure progress and intervene when a business had difficulty moving forward.

The 1,325 participating businesses included 25 larger retailers that were already online and needed a different kind of support. The CQCD offered those businesses 15 days of more advanced assistance.

eCommerce-Québec 2018: an event not to be missed

From October 4 to 5, 2018, the CQCD organizes the 5th edition of the eCommerce-Québec event at the Palais des Congrès. The event will bring together nearly 1,300 participants (e.g. retailers, traders and suppliers) looking for a variety of new technology solutions. Learn more about the event eCommerce-Québec 2018.

Consumer importance in retail trade

He cites the example of De fil en pétales, a Val-d’Or business supported by the CQCD in its international development. By launching a transactional website, the company expanded from a local market to an international one.

"The role of the CQCD is to help retailers take the first step in the right direction," says Turgeon. Moreover, he advises to "always think consumer". "Create a Facebook page, be present on Instagram and federate your community, because it will support you on the web and help you increase your visibility," he concludes.

Want to hear the full episode of podcast helloDarwin with Léopold Turgeon to learn more about his career and his knowledge? Here is the podcast in its entirety:

About the interviewer:

This helloDarwin podcast episode was prepared and hosted by Olivier Lambert of Tactik Media. He is a co-founder of Tactik Media and the founder of LeadLion, with experience in web marketing and business development. He specializes in small businesses and closely follows developments in the digital sector.