Canadians Boost Holiday Spending 10% in 2024
- Canadians' holiday spending is forecasted to increase by 10% this year, totaling $1,478 per person.
- Concerns about housing costs, credit card debt, and inflation are prevalent among consumers, impacting their spending habits.
- The anticipated increase in spending reflects a cautious approach, with many consumers focusing on value and online shopping.
In Canada, holiday spending is projected to increase by 10% this year, reaching $1,478 per person, as reported by Deloitte Canada on October 15, 2024. This rebound follows a decline in spending last year, although it remains below the levels seen in previous years, such as $1,520 in 2022 and $1,706 in 2019. Despite the anticipated increase, consumer sentiment remains cautious, with many Canadians expressing concerns about housing costs, credit card debt, and the affordability of holiday gifts. The report highlights that inflation is a significant factor influencing consumer spending, with two-thirds of shoppers expecting higher prices this season. As a result, Canadians are likely to allocate a larger portion of their holiday budgets to online shopping, with 43% planning to shop online, particularly from Amazon, which has seen a rise in Prime memberships. Additionally, the shopping landscape is becoming increasingly competitive, with many consumers planning to spend 67% of their holiday budget after Black Friday. The report also notes that a significant number of Canadians have been affected by retailer data breaches, leading to a decrease in shopping frequency at those retailers. Overall, while there is a forecasted increase in holiday spending, the underlying consumer concerns and inflationary pressures suggest that this season will be marked by cautious spending behavior and a focus on value.