Canadian Holiday Retail Spending Expected to Increase 4.4% This Year

Key Takeaways

• Canadians are spending more this holiday season, with a 4.4% increase in retail spending year-over-year
• 88% of total holiday spending occurred in-store, while 12% came from online shopping
• Clothing and accessories were popular purchases, with one-stop shops being the top choice for convenience
• Artificial intelligence is starting to shape how people discover products, compare prices, and interact with offers
• Consumers are becoming more informed and intentional with their spending, looking to stretch their dollar

Introduction to Holiday Spending
The holiday season is a time for giving, and it seems that Canadians are giving a little more this year. According to a new report from Visa Canada, preliminary 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 retailers, who rely heavily on the holiday season to drive sales. The report also highlights the importance of in-store shopping, with 88% of total holiday spending occurring in physical stores. This suggests that Canadians still value the traditional shopping experience, despite the growing trend of online shopping.

In-Store vs. Online Shopping
The report from Visa Canada also sheds light on the divide between in-store and online shopping. While 88% of total holiday spending occurred in-store, 12% came from online shopping. This divide is not surprising, given the convenience and flexibility that online shopping offers. However, it’s clear that Canadians still prefer to shop in-store, where they can see and touch products before making a purchase. This preference for in-store shopping is also reflected in the types of products that Canadians are buying. According to the report, clothing and accessories were popular purchases, with one-stop shops being the top choice for consumers looking for convenience. This suggests that Canadians value the ability to try on clothes and see products in person before making a purchase.

The Role of Artificial Intelligence
This holiday season also marks a turning point for shoppers, as artificial intelligence begins to shape how people discover products, compare prices, and interact with offers. According to Visa chief economist Wayne Best, this has led to a more informed and intentional consumer, making sure they can stretch their dollar. Artificial intelligence is changing the way that consumers shop, with many using online tools to compare prices and find deals. This has created a more savvy consumer, who is willing to do their research before making a purchase. As a result, retailers are having to adapt to these changes, by offering more personalized and targeted marketing efforts.

Consumer Behavior
The report from Visa Canada also highlights the changing behavior of consumers. With the rise of artificial intelligence, consumers are becoming more informed and intentional with their spending. They are using online tools to compare prices, read reviews, and find deals. This has created a more empowered consumer, who is willing to walk away if they don’t find what they’re looking for. As a result, retailers are having to be more competitive, by offering better prices, better products, and better customer service. This shift in consumer behavior is also reflected in the way that Canadians are spending their money. According to the report, Canadians are spending more on clothing and accessories, and are looking for convenience and value when making their purchases.

Conclusion
In conclusion, the holiday season is shaping up to be a strong one for retailers, with Canadians spending more than they did last year. The report from Visa Canada highlights the importance of in-store shopping, as well as the growing trend of online shopping. It also sheds light on the role of artificial intelligence in shaping consumer behavior, and the ways in which retailers are having to adapt to these changes. As the holiday season comes to a close, it will be interesting to see how these trends continue to evolve, and how retailers will respond to the changing needs and preferences of Canadian consumers. One thing is certain, however: Canadians are spending more this holiday season, and retailers are taking notice.