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Crackling firewood, a rich mug of eggnog and a holiday shopping list that seems to have no end.
This year, the holiday spirit might come with a few extra trips to the bank — as holiday budgets are expected to see a yuletide boost.
Canadians are expected to spend more this holiday season despite the financial challenges, according to a recent survey from the Retail Council of Canada (RCC).
The average holiday spending for 2024 is set to reach $972, up $74 or eight per cent from last year, the survey suggests. RCC interviewed over 2,500 shoppers from across Canada for the survey and found that 75 per cent were planning to maintain or up their spending.
Ontario leads the online shopping race with an average spend of $1,158, according to RCC — up 11 per cent from the previous year.
“I’m buying for more people this year. So. I’m probably going to spend more [on] this, just because of that,” said Haley MacArthur, a shopper at the Eaton Centre.
Omar Fares, a customer behaviour expert and retail management lecturer at Toronto Metropolitan University, says he believes that inflation and the post- pandemic financial constraints played a role in shifting the average Canadian’s spending habits.
“There was… a long period of time of pessimism, about the outlook of the market,” Fares said.
He quoted a recent survey by PWC which stated that 65 per cent of Canadians believe the economy will stabilize or improve in the coming months, which is 48 per cent up from last year.
“Now when you have a market that is a little bit more optimistic, you’re looking at more possibility to spend and more confidence to spend,” he said.
Fares said this increase in consumer confidence has translated into a higher shopping budget for the holidays. He said he thinks the recent reduction of interest rates has also instilled a sense of security in Canadians, with more finding it more affordable to splurge during the season.
However, not everybody is on board with burning a hole through their pockets during the holiday season.
“I don’t really like Christmas, I know I sound like the Grinch, I don’t mean to,” said Barbara Barrett, another shopper at the Eaton Centre.
“I know I’m in a mall now, but I don’t like running around getting presents just for the sake of getting presents,” Barrett said, “I don’t like the corporate glut of Christmas.”
The RCC survey also found that while Canadians are spending more, they are also becoming more strategic with their spending. In fact, 71 per cent of the Candians surveyed are adapting their spending habits, prioritizing sales and buying only when they find the best deals.
RCC x Leger Holiday Shopping Survey 2024, is a member-exclusive survey based on asking more than 2,500 shoppers across Canada.
Reporter, On the Record, Fall 2024
OTR reporter, Fall 2024
