Canadians plan to reduce spending this holiday season
Canadians intend to spend an average of 1,104 for the 2020 holiday season, according to PwC Canada's Holiday Outlook report, released Oct. 13. This is a net decline of 30.7% from the average spending budget of $1,593 in 2019.
For its report, PwC Canada conducted a survey of 1,000 consumers in Calgary, Montreal, Toronto and Vancouver to find out their shopping plans for the upcoming holiday season.
Impact of COVID-19
"Many Canadian consumers and retailers aren't sure what to expect as we approach the 2020 holiday season,” says Myles Gooding, National Retail Leader, PwC Canada. “This year, the impact and implications of the COVID-19 pandemic are top of mind for consumers. Canadian consumers plan to do more of their shopping online than in stores this holiday season, as they focus on convenience, health and safety, rather than the shopping experience itself."
The survey found 86% of Canadian consumers expect to spend the same or less this holiday season. In particular, they plan to slash travel spending Asked how the pandemic will affect their personal spending capabilities for the holiday season, 57% of respondents said it's had a negative or slightly negative impact.
In 2020, Canadians plan to spend 49% less on themselves for the holiday season, found the survey. Most of their spending will be on gifts – $630 in 2020 versus $647 in 2019. They plan to spend $308 on travel versus $743 in 2019, and $166 on entertainment versus $204 in 2019.
PwC Canada’s research found that 33% of Canadians plan to use curbside pick-up for their online purchases, compared to 13% last year.
The survey also found that with the current US/Canada border closed, the number of respondents who said they'd consider in-store cross-border shopping is down drastically from last year. “But at the same time, we're seeing an increase in online cross-border shopping – a phenomenon we refer to as the rise of the global shopper,” observed PwC Canada.