Wrapped in resilience
A season of smart spending
Consumers are more resourceful this year, spending smart and looking for an experience that extends beyond the price tag. Climb inside the mind of the Canadian consumer with our 2025 holiday retail outlook.
Holiday shopping is getting smarter. New technologies and economic uncertainty are changing how Canadians browse, buy, and decide. But even with caution top of mind, shoppers are willing to spend a little more when value and reliability are part of the experience.
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Our 2025 holiday retail outlook explores how retailers can meet consumers where they are: balancing innovation with reassurance, and delivering the value, consistency, and confidence shoppers are looking for.
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The bottom line:
As recession concerns linger, Canadians are shopping with intention. For retailers, that means promotions and price clarity will matter more than ever. Those who can prove value without sacrificing profitability will be best positioned to capture savvy spend.
Value and brand loyalty are driving gift choices
With inflation still top of mind, Canadians are more value-conscious than ever. Shoppers are looking for smarter ways to make their money go further. That means budgets are being stretched through earlier shopping. Consumers are deal-seeking as they look to make trade-offs between everyday spending and seasonal indulgences.
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of Canadians expect prices to climb this holiday season
say they’ll be shopping around to find the best deals
say personalized offers play a role in where they decide to shop
Timing the holiday spend
Canadians are planning their purchases earlier and more strategically. Retailers need to show up at the right moments.
Spend across the season:
October
November
Black Friday/ Cyber Monday
Early December
Late December
Value-driven retailers define the season
Though shopping local is still on Canadians radar, consumers are leaning on, value-driven retailers in the search for price, consistency, and convenience.
Where Canadians' buy gifts:
Amazon
Mass merchants
Warehouse membership clubs (i.e., Costco)
Shein/Temu/Alibaba
This bottom line
With holiday spending set to spike around Black Friday, Cyber Monday, and early December, retailers have a short window to capture attention. This year, leaders need to time promotions strategically and sharpen pricing strategies to stand out .
More shoppers are turning to AI for holiday inspiration
Curiosity around AI is quickly turning into everyday use, especially with younger shoppers. Trust and privacy concerns might be a barrier for older generations, but younger shoppers are relying on AI tools and social platforms to discover and research products.
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understand AI
have used AI in the past three months
are concerned about how GenAI is being used
AI moves into the shopping aisle
AI is quickly becoming part of how Canadians decide what to buy, with younger consumers leading the way in using these tools for research and discovery.
The new path to purchase
Who's turning to AI for holiday gift inspiration?
Gen-z
Average
Baby boomers
This bottom line
More consumers are turning to AI tools and social media to guide what they buy. Retailers need to optimize their platforms for AI-driven discovery and making product information seamless and accessible wherever shoppers are looking. However, real value will come from focusing on high-impact use cases aligned with business needs, not just adopting AI for its own sake.
