Many shoppers have already shifted their focus and spending towards Christmas, despite Halloween not even having arrived yet. Stores have stocked up for the holidays, and despite inflation, shoppers don’t seem to mind. In fact, some are planning to spend the same or even more this holiday season, with data from Deloitte Canada indicating a 10 per cent increase in holiday spending from last year, with the average shopper expected to spend around $1,400. Marty Weintraub, a partner and National Retail Leader with Deloitte Canada, explains that one of the main reasons for the increase in spending is that things just cost more, meaning people have to spend more to get the same products and services. However, actual spending might not start until later in the season, as Canadians will be hunting for the best deals due to inflation.
According to Deloitte Canada, Black Friday will be a significant shopping moment, lasting from the Black Friday period until Christmas Eve, accounting for about 67 per cent of all spending during the season. The organization predicts that 43 per cent of total holiday spending will be done online, meaning that stores without an online presence will be at a disadvantage this holiday season. Weintraub also notes that up to 70 per cent of Black Friday and Cyber Monday spending will be done online, higher than the rest of the season. This highlights the importance for retailers to have a strong online presence to attract shoppers during the holiday season.
As the holiday season approaches, many consumers are prepared to spend more despite the challenges of inflation. Deloitte Canada’s data shows that holiday spending is expected to increase, with shoppers planning to spend around $1,400 on average. Weintraub explains that the increase in spending is due to the rising costs of products and services, requiring consumers to spend more to maintain the same level of purchasing power. Despite this, many Canadians are expected to wait for deals before making their holiday purchases, with Black Friday being a significant shopping event leading up to Christmas Eve.
The shift towards online shopping is becoming increasingly prevalent, with Deloitte Canada predicting that 43 per cent of total holiday spending will be done online. This trend indicates the importance for retailers to establish a strong online presence to attract shoppers during the holiday season. Black Friday and Cyber Monday are expected to see a significant increase in online spending, with up to 70 per cent of purchases being made online during these events. This emphasizes the need for retailers to enhance their digital offerings to capitalize on the shift towards online shopping.
Despite the challenges posed by inflation, many consumers are still enthusiastic about the holiday season and are willing to spend more on gifts and celebrations. Retailers are gearing up for a busy shopping season, with Black Friday expected to be a crucial period for attracting shoppers and driving sales. With a significant portion of holiday spending expected to occur online, retailers without a strong digital presence may struggle to compete during the holiday season. It is essential for retailers to adapt to the changing consumer behavior and prioritize their online strategies to remain competitive and capture holiday shopping budgets.
