As the 2024 holiday season approaches, Canadian consumers are gearing up for increased spending, with a notable emphasis on value and strategic shopping. Here’s an overview of the key trends shaping this year’s holiday shopping landscape:
Increased Holiday Budgets
Canadians plan to spend more this holiday season compared to previous years. The Retail Council of Canada (RCC) reports an expected average expenditure of $972, marking an 8% rise from last year.(Retail Council)
Similarly, JLL Canada’s survey indicates a 32% increase in holiday budgets, averaging $971 – the most significant uptick since 2019. (JLL)
Deal-Seeking and Strategic Shopping
Despite higher budgets, Canadians remain budget-conscious. Approximately 90% are actively seeking deals and promotions to maximize their spending power. (JLL)
This frugal approach is further highlighted by 71% of shoppers adjusting their gift-giving habits due to inflation, focusing on sales and early planning. (Retail Council)
Preferred Shopping Periods
The weeks leading up to Black Friday are pivotal, with 89% of Canadians planning to shop between November 1 and November 28. The period from December 3 to December 20 also remains significant for holiday purchases. (JLL)
In-Store Shopping Resurgence
Physical stores continue to play a crucial role, with 99% of Canadians intending to visit shopping centres during the holiday season, up from 95% last year. Additionally, 74% prefer making holiday purchases in-store, valuing the tactile experience and immediate gratification. (JLL)
Gift Preferences
Gift cards remain the top choice, with 78% of Canadians planning to purchase them. Clothing and shoes are also popular, with 16% of holiday budgets allocated to these categories.
Regional Spending Variations
Spending Habits Vary Across Provinces:
- Ontario: Leads with an average spend of $1,158, with 41% of purchases made online.
- Alberta: Budgets around $970, showing a strong inclination towards online shopping for décor and food.
- British Columbia: Averages $893, with a preference for in-store shopping and reliance on flyers (39%) for planning.
- Atlantic Canada: Spends about $904, with a strong loyalty to big-box retailers, dedicating 27% of their holiday budget.
- Quebec: Budgets approximately $770, focusing on home entertaining and maintaining steady spending habits. (Retail Council)
Impact of Inflation
Inflation continues to influence shopping behaviors, with 72% of Canadians reporting its impact on their gift-giving plans. This has led to more mindful spending, with 71% adjusting their habits by buying fewer gifts and seeking the best deals. (Grocery Business)
Technological Integration
Retailers are leveraging AI-powered tools to enhance the shopping experience. For instance, Shopify’s AI assistant, Sidekick, aids sellers with sales reports and customer data, contributing to a 26% revenue increase in the third quarter. (Reuters)
Conclusion
The 2024 holiday shopping season in Canada is characterized by increased spending coupled with strategic, value-driven consumer behaviors. Retailers can capitalize on these trends by offering compelling deals, enhancing in-store experiences, and integrating technology to meet evolving consumer expectations.
