A survey by Deloitte Canada has found Canadians are planning to cut back for the holiday season this year.
Seventy-six percent said they are cutting down due to higher food prices, 67 percent due to inflation worries, and 60 percent say it’s because of economic concerns.
The 2022 Holiday Retail Outlook also found the biggest spending cuts will be seen in key categories including non-gift electronics (-55%), travel (-30%), and non-gift clothing (-27%)
- One in three (37%) plan to shop earlier this year, with 46 percent believing it will help them get better deals
- Of those who plan to reduce their holiday spending, 76 percent are cutting down because of higher food prices, inflation worries (67%), and economic concerns (60%)
- 41 percent of consumers plan to only buy what their family needs
- 15 percent say they will shop and spend for themselves, down from last year.
According to the survey, four in ten Canadians have seen their household finances worsen this year, with the average household spending falling 17 percent this year to $1,520.
Thirty-seven said they’ll be shopping earlier this year, and almost half of those said it’s because it may help them to get better deals.
“In 2021, consumers were looking for a reason to celebrate as pandemic concerns started to abate,” says Marty Weintraub, Partner, Deloitte Canada’s National Retail Leader. “However, this holiday season consumers are dealing with worries from every angle be it economic headwinds, rising interest rates, inflationary pressures, the ‘COVID hangover’, new and reoccurring diseases, geopolitical uncertainty, and more. Across income brackets, consumers have seen their buying power shrink and they’ll be looking for ways to stretch their dollar.”
Additionally, more than half say they prefer to buy gifts that support small or local businesses, while consumers in the Atlantic (71%) are most likely to buy local.
The study also found, more Canadians are looking forward to getting together this year, with 41 percent planning to host formal meals this year, up by six percent from last year.
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