Key Takeaways
- Preliminary market data suggests Canadians are willing to spend more this holiday season than in previous years, with a modest growth in Boxing Day retail sales expected.
- Younger consumers are expected to cut back on overall spending and favor digital alternatives due to an inflationary environment.
- The divide between generations is widening, with older consumers more likely to follow the "Buy Canadian" trend than their younger counterparts.
- Shoppers are becoming more strategic, with tighter household budgets and elevated unemployment rates causing them to be more cost-conscious with their purchasing.
- Price is the ultimate deciding factor for many shoppers, with some not prioritizing buying from Canadian stores.
Introduction to Holiday Spending
The holiday season has seen a surge in spending, with preliminary market data suggesting Canadians are willing to spend more than in previous years. This trend is expected to be reflected in Boxing Day sales, with a modest growth in revenue anticipated. However, the divide between generations is widening, with younger consumers expected to cut back on overall spending and favor digital alternatives. This shift in behavior is largely due to an inflationary environment, which has caused shoppers to become more strategic and cost-conscious with their purchasing.
The Rise of Strategic Shopping
Shoppers are becoming more strategic, with tighter household budgets and elevated unemployment rates causing them to be more mindful of their spending. This is evident in the fact that many shoppers are only shopping when items are on sale. Toronto-based retail consultant Bruce Winder noted that Canadians appear to be shopping almost only when things are on sale these days. This trend is expected to continue, with shoppers becoming more discerning and looking for value for their money.
The Buy Canadian Movement
The "Buy Canadian" movement, which emerged in early 2025, has not had a significant impact on shoppers’ decisions at the checkout counter. While some shoppers, such as John Friesen, prioritize buying from Canadian stores, many others do not. In fact, price is often the ultimate deciding factor, with shoppers opting for the least expensive item regardless of where it is made. This is evident in the comments of shoppers such as Shayla Mitchelson, who noted that while buying from Canadian stores is a bonus, it is not a priority.
Shopper Behavior on Boxing Day
On Boxing Day, shoppers flocked to malls and stores to take advantage of sales and discounts. Many shoppers, such as Chelsea Miller, did not worry about the origin of the products they were purchasing, instead focusing on the price. Others, such as the Isnor family, preferred to buy Canadian when possible, but ultimately prioritized price. The busy Stone Road Mall in Guelph, Ont., was filled with shoppers looking for deals, with many expressing similar sentiments. Vickie Isnor, 44, noted that while it is nice to buy Canadian, price is the ultimate deciding factor.
The Impact of Inflation and Economic Uncertainty
The inflationary environment and economic uncertainty have had a significant impact on shopper behavior. With tighter household budgets and elevated unemployment rates, shoppers are becoming more cautious and strategic with their spending. This has led to a shift towards digital alternatives and a greater emphasis on value for money. As Morningstar noted, revenue from Boxing Day retail sales is expected to modestly grow year-over-year, but overall volume, or the number of units sold, is expected to be lower relative to 2024.
Conclusion
In conclusion, the holiday season has seen a surge in spending, with Canadians willing to spend more than in previous years. However, the divide between generations is widening, with younger consumers expected to cut back on overall spending and favor digital alternatives. Shoppers are becoming more strategic, with price being the ultimate deciding factor for many. The "Buy Canadian" movement has not had a significant impact on shoppers’ decisions, with many prioritizing value for money over the origin of the products they purchase. As the retail landscape continues to evolve, it will be interesting to see how shopper behavior adapts to the changing economic environment.
