Canadian wallets are opening wider this holiday season despite economic pressures, with Deloitte Canada forecasting a 3% jump in consumer spending compared to last year. The average Canadian shopper plans to shell out $1,347 on gifts, entertainment, and celebrations—marking a notable shift in consumer confidence as we approach the final stretch of 2024.
“We’re seeing a cautious optimism among shoppers that wasn’t present last year,” says Marty Weintraub, national retail leader at Deloitte Canada. “While inflation concerns haven’t disappeared, consumers are prioritizing the holiday experience after several years of scaled-back celebrations.”
The forecast reveals a fascinating dichotomy in spending patterns. Higher-income households plan to increase their holiday budgets by nearly 7%, while middle-income families are holding steady with only modest increases. Lower-income households continue to face the steepest challenges, with many reporting plans to reduce spending by up to 5% compared to 2023.
E-commerce continues its dominance in the holiday shopping landscape, with 59% of surveyed consumers indicating they’ll make the majority of their purchases online. This represents a 4% increase from last year, with convenience and comparative shopping cited as primary motivators.
Black Friday and Cyber Monday promotions remain critical shopping events, with 68% of respondents planning to take advantage of these sales. However, the data shows a growing trend of “promotion fatigue,” with consumers becoming increasingly selective about which deals they pursue.
“The retail calendar has essentially turned into a year-round promotion cycle,” explains retail analyst Jennifer Marshall. “Shoppers are becoming more sophisticated about distinguishing genuine values from marketing hype.”
Despite economic headwinds, certain categories are poised for significant growth. Technology gifts are expected to see a 12% spending increase, while experiential gifts like concert tickets and travel vouchers show a remarkable 18% jump—reflecting consumers’ continued prioritization of experiences over material goods.
The “buy now, pay later” financing option continues its meteoric rise, with 34% of shoppers planning to utilize these services—up from 26% last year. This trend is particularly pronounced among millennials and Gen Z consumers, raising concerns among financial advisors about post-holiday debt challenges.
Regional differences across Canada paint an intriguing picture of holiday spending intentions. British Columbia leads with the highest projected per-household spending at $1,456, while Quebec shoppers remain the most conservative, averaging $1,205 per household.
For retailers, the forecast presents both opportunities and challenges. While increased spending is welcome news for the sector, the compressed nature of this year’s shopping season—with fewer days between American Thanksgiving and Christmas—creates logistical pressures.
As we approach the critical holiday shopping period, one thing remains clear: despite inflation concerns and economic uncertainty, Canadians are determined to celebrate the season with renewed enthusiasm. The question remains whether this spending boost signals a broader economic confidence or simply represents a temporary reprieve from financial caution.
For more insights on consumer trends, visit CO24 Business or check CO24 Breaking News for the latest economic updates affecting Canadian shoppers.
