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Report: Holiday Spending

By CFIN Newsdesk posted 11-24-2023 08:00

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Deloitte recently released its 2023 holiday retail outlook, which reveals that Canadians are feeling cautious about spending this holiday season on groceries and gifts, and are shopping around to find the best deals.

Here are four takeaways from the report.

1. Canadians continue to feel the pinch from inflation, and are worried about holiday expenses causing financial issues in the New Year. As a result, consumers are scaling back spending during the holidays this year.

Holiday spending is expected to be down 11% from 2022.
67% of Canadians are concerned about a potential recession.
33% of consumers say they worry about how to pay for gifts.
Consumers say they will spend less on gifts (-18%), gift cards (-14%), charity (-40%), and groceries (-23%).

2. Online purchases are strong, but have declined since peaking in 2020. Canadians are also diversifying where they shop.

41% of Canadians say they will shop online for gifts this year.
33% of shoppers say they will be buying gifts online but pick them up in-store.
45% say they will visit many stores to get what they need.
69% of respondents say they shop on Amazon; 61% at mass merchants; 40% at warehouse membership clubs; and 36% at department stores.

3. Value is key this year, and consumers say they will be making more conscious choices to stay within their holiday budgets.

Canadians say they will visit 37% more stores in person as well as websites than in 2022 to search for the best deals.

55% say they will shop in-store.
57% report that return policies influence their buying choices.
48% says they will only be buying what their family needs; 71% are looking for products on sale; and 29% are shopping at less expensive stores.

4. Sustainability is a priority, and Canadians are purchasing environmentally friendly gifts more often.

37% of consumers are prioritizing eco-friendly gifts whenever possible.
55% say they will pay more for sustainable products.
70% say brands and retailers should make sustainable products, although 44% say they don’t believe sustainable claims made by brands.