Feeling ‘gouged’ by retailers, consumers shrink holiday spending plans: survey
Fears of a recession and pressure from inflation have Canadians feeling less like Santa and more like Scrooge heading into the holidays, a new survey from Deloitte Canada shows.
The consultancy firm’s annual holiday spending outlook shows the average amount Canadians are planning to spend over the holidays this year has reached a five-year low of $1,347.
That’s down 11 per cent from 2022’s spending forecast and well short of the roughly $1,700 average spend seen back in 2019 when the survey launched, says Deloitte Canada partner Marty Weintraub.
The results are “not surprising,” Weintraub tells Global News, as the economic outlook dampens, and consumers feel frayed after battling inflationary pressures and high interest rates for well over a year.
The survey of more than 1,000 Canadians conducted in late August and early September showed roughly two-thirds of respondents are concerned about a recession. More than half (55 per cent) are worried about upcoming hikes to their rent or mortgage payments, while a third are worried about paying for gifts over the holidays.
“All of these things are weighing on the minds of the consumer this holiday season,” Weintraub says.
“This year we’re just basically going to see a hunkering down. So we’re going to spend less on gifts and also give fewer gifts to fewer people.”
Charitable giving is also expected to take a hit this season, with projected spending down 40 per cent over the holidays.
While gift-giving is expected to take a hit, Canadians are meanwhile still keen to spend on experiences, with an 11 per cent jump in forecast spending on travel. Some 26 per cent said they plan to treat themselves to a concert, spa, trip or other experience.
On the opposite end of the spectrum, 24
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