Canadians’ holiday spending is set to return to pre-pandemic levels. Shoppers’ average holiday spend is estimated to hit $1,841 this year, bouncing back 31% from 2020 and rising 8% over 2019’s average spend.

Rising concerns over supply-chain issues and potential product shortages will persuade many Canadians—especially those who have weathered the pandemic well—to start shopping early. These same concerns may drive consumers to try new products and brands if their desired items are out of stock.

Canadians who weathered the pandemic well financially are poised to spend an average of $2,118 this holiday season. Those who have had a more challenging time financially are more likely to reduce their holiday spending to an average of $1,400, citing inflation concerns and a desire to increase their savings. Retailers that have invested in their customer data and analytics capabilities should be able to better curate offers based on individual needs.

Canadians continue to take advantage of online shopping to avoid crowded stores and mitigate their exposure to COVID-19. Many consumers intend to visit stores for transactional reasons this holiday season, such as picking up or returning items or to save on shipping costs. This will increase pressure on retailers, which are already experiencing hiring challenges.

Fundamental shifts in holiday shopping habits of Canadians accelerate

Tills will ring this holiday season!