According to a recent report, holiday spending in Canada is anticipated to decline this year as inflation reduces consumer purchasing power and looming economic uncertainties.
According to Deloitte Canada’s 2022 Holiday Retail Outlook, household holiday spending would decline 17% to $1,520 as budgets are restrained by recessionary worries and rising interest rates.
In an effort to stretch their budgets, it says Canadians also intend to shop early and look for offers.
The report, based on a Leger survey of more than 1,000 Canadians conducted in late August, found more than a third of respondents plan to start shopping earlier than last year.
Retailers seem to be reacting by releasing Christmas-themed products sooner, and some have even moved holiday campaigns earlier in the fall.
For instance, Amazon Canada launched the Prime Early Access Sale last week, giving Prime subscribers access to a two-day shopping extravaganza.
Meanwhile, the Deloitte study indicated that a rising number of Canadians plan to wrap off their seasonal buying on Black Friday, a significant retail event that previously marked the beginning of holiday shopping for many customers.
According to Marty Weintraub, partner and national retail consulting leader at Deloitte, “we noticed quite a large spike in terms of how many Canadians will complete their shopping by Black Friday.”
According to the survey, 26% of respondents—up from 18% last year—will complete their holiday shopping on Black Friday.
“All the retail seasons over the past few years are getting earlier,” Weintraub said. “The retail market is competitive.
According to customary retail trends, the expected decrease in expenditure this year is uncommon, he added.
According to Weintraub, “Canadians are telling us they’re going to be lowering their spending, which is not common.” “We’ve seen it typically increase year over year, except in 2020. ”.
Report: Canadian holiday spending is anticipated to decline due to the recession.
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