Canadians will spend an average of CA$1,563 (3.7% increase over previous year) during the 2018 holiday season
TORONTO, Oct. 3, 2018 /CNW/ – Eight out of ten Canadians plan to spend the same or more this holiday season according to PwC Canada’s 2018 Holiday Outlook report. Consumers will spend an average of CA$1,563, up from CA$1,507 (or 3.7%) in 2017 and 60% will shop between Black Friday and December 25. Economic factors such as higher interest rates, climbing debt levels and trade negotiations do not appear to be barriers to Canadians increasing their gift giving this upcoming season.
“Canadians are ready to shop this holiday season despite recent trade uncertainty and climbing debt levels,” says Myles Gooding, National Retail Leader, PwC Canada. “Retailers should expect to see an influx of shoppers in-store compared to last year but online sales still remains a convenient shopping experience for all.”
Despite higher interest rates and rising debt levels among Canadians, more than 74% will use their credit cards to purchase gifts and only 19% are concerned about credit card debt. The report indicates that more than half of Canadians (62%) believe the economy will perform the same or better in the next six months and are likely to spend more.
Travel continues to make up the largest part of holiday spend (46%), followed by gifts (41%) and entertainment, which includes dining out (13%). Gift cards continue to be a popular gift option as they are simple and convenient.
This holiday season, we will see more people shopping in-store, rather than online, to find inspiration and compare prices. Millennials, on the other hand, prefer using Amazon and Google for their shopping needs, citing convenience as a major reason. In Canada, there is only a 23% adoption of Amazon Prime compared to 55% in the United States.
Approximately one-third of Canadians plan to shop in the US to access better deals and wider product range. Most shoppers are focused on apparel (49%) and electronics (48%).
Click here to access the report.
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SOURCE PwC (PricewaterhouseCoopers)
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