Canadians are ready and excited for 2025 holiday shopping. The Retail Council of Canada (RCC), among others, issued their annual Holiday Shopping Survey results. Shoppers across Canada remain excited but are much more mindful and strategic amid inflation and economic pressures. The national average holiday spend is anticipated to be $975 per person (RCC). Black Friday deals, Cyber Monday sales, and Boxing Day steals continue to be appealing, and are anticipated to be high spend days. This holiday season will see the shopping experience stay upbeat, with Canadians starting to shop earlier and seeking good deals. The retail industry is expected to earn a lot of money from this year’s holiday sales. Learn more about the forecasted spending of Canadians below.
RCC’s survey findings
The RCC found that, on average, Canadians plan to spend around $975 this holiday season, slightly up from $972 in 2024. In 2023, they planned on spending just under $900. That’s an increase of 8% from the 2023 holiday season spend. Budgets are rising, but they are still under pre-pandemic levels.
Each year, Canadians spend more than they plan to. Expect averages across the country to be over the anticipated amount. Canadians are still budget-conscious, with 73% of those surveyed maintaining or increasing their budget, but still focusing on mindful spending.
Nearly ninety percent of Canadians – more than last year – are trying to seek deals and be more mindful of their budgets. Affected by inflation and increasing costs of goods, they prefer to find good deals.
Inflation has changed shopping behaviours
Despite financial pressures, Canadian shoppers seem determined to make the most of this holiday season. While Canadians are planning to spend more overall, they are focusing on mindful shopping plans and fewer gifts. Many are holding off on making purchases till peak sale times. This sentiment was reflected by multiple sources. For example, the RCC says that 90% of Canadians are actively budgeting for the holidays, and Deloitte shared findings showing that 78% are shopping specifically for deals. These changes are mainly because of inflation and economic uncertainty, as Canadians navigate sales, budgeting, and planning further in advance than they usually do.
This all supports Black Friday’s continued reign as king of deals day. Findings revealed that 53% call Black Friday the most important shopping moment, and 48% of Canadian shoppers plan to take advantage of the deals.
The return of in-store shopping
Ever since the COVID-19 pandemic, more people have gravitated towards online shopping. This year, things have changed. Respondents are indicating a higher preference towards in-store shopping. Shoppers are continuing to take advantage of the convenience of shopping methods that the pandemic has streamlined. However, they are becoming more aware of the repercussions of sharing their data, with 70% of Deloitte survey respondents worried about sharing personal information with retailers.
Sixty-two percent of Canadians still prefer in-store shopping experiences, but the RCC says that a big chunk, 38%, prefer shopping online due to the deals and convenience. There has been an increase in hybrid approaches, as well as greater research for promotions.
Canadian concerns, and what categories they’re choosing
Many shoppers have their hearts set on specific and pre-planned products and brands. They are researching to make sure they have the right gifts and good value, with 78% saying they’ll be shopping around to find the best deals.
In terms of categories, clothing (including accessories) and food/alcohol purchases for the holidays get the highest share at 16% each. There is a continued greater focus on gift cards, just like last year, with 42% of respondents opting for this as part of their holiday budgets. This is up from only 16% in 2021. If the gifts shoppers really want are not on the shelf, this percentage may rise.
PwC survey results indicated that current economic uncertainty is revealing different needs and values between generations. Younger consumers have greater brand awareness and care about brand stories and sustainability. Millennials and Gen Z are more inclined to use digital services, like online payments or self-checkouts. Interestingly, they are also projected to spend less compared to older generations. Gen Z consumers are planning to spend 34% less this year; Millennials, 11% less.
Most significant regional differences
The RCC survey provides insights about expected spending patterns by province. According to RCC, the national average spend will be around $975 per person.
Ontario
Ontarians will be spending $1095 this year, down 5% from last year’s average of $1,158, meaning it is no longer the highest in the country. The overall sentiment is that spending is stable, yet very price-conscious. People are doing more research to make sure they are spending wisely.
Quebec
Holiday shopping in Quebec is expected to take a dip this year. Quebecers are expected to spend an average of $620, down 20% from last year’s $770. With the highest percentage drop in spending, they continue to have the lowest average in the country. It is even lower than the national average. Budget-conscious Quebecers will focus more on home entertaining and be more deal-driven.
Prairies (incl. Manitoba / Saskatchewan)
Residents of Manitoba and Saskatchewan will be spending an average of $890, up 9% from last year’s $816, but still below the national average. These provinces are likely to spend on clothes, toys, and furniture. They are disciplined, deal-oriented, and plan their spending carefully.
Alberta
Alberta is expected to see the highest second increase, up 23% to $1,193 this year. Contrast this to last year, where spending was in line with the national average, at an average of $970. They have the highest budget among provinces and are promotion-focused.
Atlantic Canada
With a $912 average anticipated spend, they are down 1% from last year’s $904. Consumers here tend to be tradition-minded, but are increasingly focusing on value, following the trend across the country for value-driven spending.
British Columbia
This province has seen the highest increase at 26%, bringing its average to $1,129, just behind Alberta. This is a big change from last year’s average of $893. They are willing to spend more, but as is the case in the rest of the country, they are also deal-driven.
Holiday debt management tips
If you are in debt, here are a few resources to navigate this financially tricky time of year.
- Enjoy the holidays with a holiday debt plan.
- Track every expense and have separate trackers for fixed vs flexible spending.
- Budget for the 2025 holiday season according to your current financial state.
- Reduce debts all while celebrating and enjoying yourself. Spend cautiously, celebrate with your loved ones, and keep your finances healthy too!
- Be careful with how you use credit, and avoid buy now, pay later schemes. Use debit cards as much as possible – spend the money you have.
- If you haven’t already, this is a good time to set up a sinking fund. It will help you be better prepared for next year’s holiday season!
If you are struggling to manage your money or would like additional support navigating your finances, consider contacting Consolidated Credit Counselling Services of Canada. You can speak to a trained credit counsellor for free.
