Skyrocketing prices, Canadians cut even Christmas expenses
TORONTO – It will be a meager Christmas in Canada. Less expenses for a period that seemed, at least that, “untouchable”.
In its Holiday Retail Outlook 2022, Deloitte Canada says overall holiday spending is expected to drop 17%, to $ 1,520 per household, as recessive worries and rising interest rates hold back budgets. Additionally, the report highlights that Canadians are planning to shop early and seek out deals in an effort to increase their spending power.
The study, based on a Leger survey of over 1,000 Canadians conducted in late August, found that more than a third of respondents plan to start shopping earlier than last year. And retailers themselves seem to be responding to that trend by launching Christmas-themed products early, with some promotions even moving in early fall.
Amazon Canada, for example, introduced the Prime Early Access Sale last week, offering “Prime” members a two-day shopping event. Also according to the Deloitte survey, more and more Canadians seem willing to close their Christmas expenses on the occasion of Black Friday, therefore by the end of November, as confirmed by Marty Weintraub, partner and national leader in retail consultancy of Deloitte. “Many more Canadians than last year will complete their purchases by Black Friday.” The survey found that 26% of respondents will finish their Christmas shopping on that occasion, up from 18% last year. “All the retail seasons of the past few years are getting ahead of us” Weintraub said.
The projected reduction in spending is unusual compared to conventional retail trends, Weintraub added: “Canadians are telling us that they will reduce their spending, which is not typical. We have seen those spending increase year over year, except in the year. 2020 “. But then the pandemic began. Today, perhaps, the crisis is, if possible, even deeper.