The shopping peak ends before Black Friday! Canadian holiday season consumption insights

It is learned that according to the "2022 Holiday Retail Outlook" released by Deloitte Canada, affected by inflation and rising prices, Canadians plan to cut holiday spending, with the average household expected to spend 1,520 Canadian dollars, a decrease of 17% from 1,841 Canadian dollars in 2021.

About 41% of Canadians have taken a hit to their household finances this year, and 48% expect the economy to worsen in 2023, according to a Leger survey of more than 1,000 Canadian consumers in late August. Across all income brackets, consumers are seeing their purchasing power decline.

Overall holiday season spending trends

As Canadians reduce their holiday shopping budgets, holiday shopping may be brought forward, with more consumers looking for discounts and seeking value for money.

Key findings from the report include:

The biggest spending cuts will occur in key categories including non-gift electronics (-55%), travel (-30%) and non-gift apparel (-27%).

37% plan to shop earlier in the year, even before November.

41% of consumers plan to buy only what their family needs.

15% said they shop and spend for themselves, down from last year.

70% of respondents said they would buy from the retailer with the lowest prices, up from 56% last year.

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

Brand loyalty declines, sustainable shopping suffers

According to the report, 76% of consumers expect retailers to charge higher prices this year than in 2021. If a product they want is out of stock, 61% of consumers will turn to other brands, and 72% said they would choose an alternative brand if their favorite brand is too expensive.

47% of consumers said affordability concerns would impact their willingness to purchase more sustainable and ethical products or services. Only 25% said they did not think such purchases would have much of an impact.

The survey shows that 44% would pay up to 10% more for a product that matched their values. 46% would not pay anything more, primarily because they can’t afford it (47%) or don’t think the product has a meaningful impact on sustainability (28%).

Shopping rush ends before Black Friday, Amazon becomes more popular

Deloitte research found that Black Friday used to mark the beginning of holiday shopping, but is now marking the end of the holiday shopping season. The survey showed that 26% of respondents will complete their holiday shopping on Black Friday, up from 18% last year.

But the report said Boxing Day remained an "unshakable tradition" with a third of consumers still planning to take advantage of Boxing Day sales, a similar figure to 2021.

Concerns about price increases and supply chain issues also mean consumers are more likely to shop at retailers that offer better value, such as Amazon, the Deloitte report said, with 71% of respondents saying they are likely to shop at Amazon this year, up from 62% in 2021.

At the same time, in-store shopping levels are set to rise, with some 51% saying they would prefer to shop in person this season, up 2% from 2021.

Editor✎ Ashley/

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