In its 2022 Holiday Retail Outlook, Deloitte Canada says overall holiday spending is expected to fall 17% to $1,520 per household as recessionary concerns and higher interest rates rein in budgets. It says Canadians are also planning to shop early and hunt for deals in a bid to stretch their spending power.

The report, based on a Leger survey of more than 1,000 Canadians conducted in late August, found more than a third of respondents plan to start shopping earlier than in 2021. Retailers appear to be responding by rolling out Christmas-themed products earlier, with some even moving holiday promotions earlier in the fall. Amazon Canada, for example, introduced the Prime Early Access Sale in early October, offering Prime members a two-day shopping event

Meanwhile, Black Friday is increasingly how many Canadians plan to close out their seasonal spending, the Deloitte survey found. “We saw quite a big jump in terms of how many Canadians will complete their shopping by Black Friday,” said Marty Weintraub, a partner and national retail consulting leader at Deloitte. The poll found 26% of respondents will finish their holiday shopping on Black Friday, up from 18% in 2021.

“All the retail seasons over the past few years are getting earlier,” Weintraub said. “The retail market is competitive.” The planned reduction in spending this year is unusual compared with conventional retail trends, he said.

“Canadians are telling us they’re going to be reducing their spending, which is not typical,” Weintraub said. “We’ve seen it typically increase year over year, except in 2020.”

Source: Globe and Mail