Canadian holiday spending expected to decline in 2023: report

garretschoenbergOctober 18, 2022

According to Deloitte Canada’s 2022 Holiday Sales Outlook, Canadians plan to cut their holiday spending by 17% compared to last year.

Canadians plan to cut vacation spending this year due to inflation and economic uncertainty, according to a Deloitte Canada report. Photo by David Paul Morris /bloomberg

Canadians have been hit hard by inflation and rising prices, and Scrooge may spend more on holidays than Santa in the 2023 season, according to a new report.

Deloitte Canada’s 2022 holiday retail outlook, released Tuesday, said Canadians plan to cut holiday spending, with the average household spending $1,520, down 17% from $1,841 in 2021. I expect.

Canadians treat themselves less and make significantly fewer non-gift purchases. This includes her 55% decrease in non-gift electronics, 30% decrease in travel, and 27% decrease in non-gift clothing.

Marty Weintraub, National Retail Consulting Leader, Deloitte Canada, said:

But as consumers deal with rising interest rates, higher prices, a COVID hangover and geopolitical uncertainty, Canadians are trying to hold out the dollar for as long as possible, says Weintraub. said. “As Canadians look to expand their vacation budgets, shopping will be faster and deals will likely hit an all-time high.”

Based on Leger’s survey of more than 1,000 Canadian consumers in late August, the report found that about 41% of Canadians had their households hit hard this year, and nearly half (48%) I expect the economy to get worse. 2023.

To get the most out of their spend, 70% of respondents say they buy from the lowest-priced retailer, up from 56% last year.

About 43% said they spend more time comparing prices, and 69% said they plan to look for deals.

Nearly one in three, or 37%, said they plan to start shopping early this year, with some planning to start shopping before November. This shows that retailers rolling out holiday-themed merchandise ahead of Halloween can find enthusiastic buyers.

Once the big retail event that marked the beginning of holiday shopping for many consumers, Black Friday is increasingly being planned as a way for some Canadians to wrap up their seasonal spending, according to a Deloitte survey. It turns out that the

“We have seen a significant increase in the number of Canadians who have completed their shopping by Black Friday,” Weintraub said. The poll found that 26% of respondents expect to finish holiday shopping on Black Friday, up from 18% last year.

However, Boxing Day remains a “strong tradition” with one in three consumers (32%) planning to take advantage of Boxing Day sales, a figure similar to 2021.

Concerns about rising prices and supply chain problems also mean consumers are more likely to shop at higher-value retailers, such as online giant Amazon and big box stores, according to a Deloitte report. increase.

Seventy-one percent of respondents said they would be more likely to shop on Amazon this year, up from 62% in 2021, and 63% said they would shop at a mass retailer, compared with 55% last year.

The report also noted that there may be a slight uptick in shopping at stores that have declined in popularity due to the pandemic this holiday season.

Respondents said they plan to spend more than half (56%) of their holiday budget in physical stores, compared to 41% online. Nearly half (51%) say they prefer to shop in person this season, a 2% increase from 2021.

chchan@postmedia.com

twitter.com/cherylchan

— Using Canadian Press files