Key Takeaways
- Canadians are spending more this holiday season, with a 4.4% increase in retail spending year-over-year.
- In-store spending accounts for 88% of total holiday spending, while online shopping makes up 12%.
- E-commerce spending has grown by 7% year-over-year, driven by extended promotions and convenience.
- Canadians are spending more on clothing and accessories, with a 10% increase from last year.
- Health and personal care items are also in high demand, with a 5.4% increase in sales.
Introduction to Holiday Spending
Canadians appear to be spending more this holiday season, according to preliminary data from digital payments company Visa Canada. The data shows that holiday retail spending was up 4.4% year-over-year across all payment types, including cash and cheque. This increase in spending is a positive sign for the retail industry, which has been impacted by various factors such as inflation and changing consumer behavior. The report from Visa Canada provides valuable insights into the spending habits of Canadians during the holiday season, including the types of products they are buying and the channels they are using to make their purchases.
In-Store vs. Online Shopping
The report from Visa Canada found that 88% of total holiday spending happened in-store, while 12% came from online shopping. This suggests that Canadians still prefer to shop in physical stores, despite the growing popularity of e-commerce. However, online shopping is still a significant channel, and the report found that e-commerce spending grew by 7% year-over-year. This growth is driven by extended promotions and the convenience of online shopping, which allows consumers to browse and purchase products from the comfort of their own homes. The fact that online shopping is growing at a faster rate than in-store shopping suggests that retailers need to invest in their e-commerce platforms to meet the changing needs of consumers.
Product Categories
The report from Visa Canada also found that Canadians spent more on certain product categories, including clothing and accessories, which saw a 10% increase from last year. One-stop shops were also a popular choice for consumers, suggesting that they are looking for convenience and a wide range of products under one roof. Health and personal care items were also in high demand, with a 5.4% increase in sales. This suggests that Canadians are prioritizing their health and wellbeing, and are willing to spend money on products that promote self-care and wellness. The growth in these product categories is a positive sign for retailers, as it suggests that consumers are still willing to spend money on discretionary items.
The Role of Artificial Intelligence
According to Visa chief economist Wayne Best, this holiday season marks a turning point for shoppers as artificial intelligence begins to shape how people discover products, compare prices, and interact with offers. Artificial intelligence is being used by retailers to personalize the shopping experience, provide personalized recommendations, and offer targeted promotions. This has led to a more informed and intentional consumer, who is able to stretch their discretionary spending and make more informed purchasing decisions. The use of artificial intelligence in retail is a growing trend, and it is likely to continue to shape the shopping experience in the future.
Methodology
The VCA Retail Spend Monitor tracks and analyzes retail sales activity over a seven-week period starting November 1, using some of its payments network data and survey-based estimates for other payment methods. This report provides a comprehensive overview of holiday spending in Canada, and provides valuable insights into the types of products that are in demand, the channels that consumers are using to make their purchases, and the trends that are shaping the retail industry. The report is based on data from Visa Canada, which is a leading digital payments company, and provides a reliable and accurate picture of holiday spending in Canada.
Conclusion
In conclusion, the report from Visa Canada suggests that Canadians are spending more this holiday season, with a 4.4% increase in retail spending year-over-year. The report provides valuable insights into the types of products that are in demand, the channels that consumers are using to make their purchases, and the trends that are shaping the retail industry. The growth in e-commerce spending, the popularity of one-stop shops, and the demand for health and personal care items are all positive signs for retailers, and suggest that consumers are still willing to spend money on discretionary items. The use of artificial intelligence in retail is also a growing trend, and is likely to continue to shape the shopping experience in the future. Overall, the report from Visa Canada provides a comprehensive overview of holiday spending in Canada, and provides valuable insights into the retail industry.
