Canadians are feeling the pressure of inflation as they prepare for holiday shopping season. The average spending on gifts is expected to increase by 10 per cent to $1,478, according to a retail outlook report from Deloitte Canada. Despite a decrease in inflation to 1.6 per cent, experts believe that Canadians will still be conscious of their budgets and spending when it comes to holiday shopping. Many Canadians are planning to rein in their shopping by spending less per person and giving gifts to fewer people.
To cope with rising prices and financial pressures, Canadians are turning to alternative gift-giving strategies. Many are opting for gift cards, coupons, cashback sites, loyalty programs, rewards points, and even second-hand items. Gift cards are becoming increasingly popular, especially among older Canadians, as they provide an easy way to manage budgets and reduce the stress of holiday shopping. Younger generations are also embracing more affordable gift options and prioritizing shared experiences over material goods.
The trend of “underconsumption core” has led many to consider DIY-homemade gifts and second-hand or refurbished products to stretch their holiday budgets further. Self-giving, where individuals buy things for themselves, is decreasing as people look for ways to trim expenses. Setting a hard budget, using deals apps, starting holiday shopping during Black Friday, and making a list of gift recipients are all strategies to help avoid overspending during the holiday season. Online marketplaces and social media channels can also provide value and convenience for holiday shoppers.
Starting early and spreading holiday spending over multiple months can help capitalize on potential sales or deals. For those who collect credit card rewards, redeeming them during the holiday season can help offset the impact of increased prices. It is important for individuals to prioritize their financial well-being during the holiday season and not feel pressured to overspend. Communication with friends and family about scaling back or omitting gift exchanges can help alleviate financial strain for everyone involved. The key is to be flexible and budget-conscious when approaching holiday shopping this season.
