Canada holiday spending expected to fall amid recession fears: report – National

A new report says holiday spending in Canada is expected to fall this year due to inflationary Consumer purchasing power shrank and economic instability appeared.

In the 2022 Holiday Retail Outlook, Deloitte Canada overall speaking holiday spending expected to drop 17% to $1,520 per household as recession fears and higher interest rates curb the budget.

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It said Canadians are also planning to shop early and hunt for deals that extend their spending power.

The report is based on Leger’s survey of more than 1,000 Canadians conducted at the end of August, which found that more than a third of respondents plan to start shopping earlier than last year.

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Retailers appear to have responded by launching Christmas-themed products earlier, with some holiday promotions moving even earlier into the fall.

Click to play video: 'Inflation affects holiday shopping'

Inflation affects holiday shopping

For example, Amazon Canada introduced its Prime Early Access Sale last week, giving Prime members a two-day shopping event.

Meanwhile, Black Friday – a major retail event that once signaled the start of holiday shopping for many consumers – an increasing number of Canadians are planning to shut down their seasonal spending, the survey found. Deloitte’s observations show.

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Canadian consumers start holiday shopping early

“We have seen a huge jump in the number of Canadians who will complete their shopping on Black Friday,” said Marty Weintraub, a partner and national retail consulting lead at Deloitte.

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The poll found that 26% of respondents would end up doing holiday shopping on Black Friday, up from 18% last year.

“All the retail seasons over the past few years have come earlier,” Weintraub said. “The retail market is competitive.”

Click to play video: 'Recession fears deep holiday discounts'

Recession fears that prices will fall deeply during the holiday season

This year’s planned spending cuts are unusual compared to usual retail trends, he said.

“Canadians are telling us they are going to reduce spending, which is not typical,” Weintraub said. “We’ve seen it generally go up every year, except for 2020.”

& copy 2022 Canadian Press


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