Deloitte Canada’s Annual Holiday Retail Outlook shows Canadian consumers are reining in their holiday spending in 2022. And the survey shows almost half who were surveyed are expecting the economy to worsen next year. Four in ten Canadians have seen their household finances worsen this year. Consumers plan to reduce their holiday spending significantly compared to last year.

A Partner with Deloitte Canada’s National Retail Leader says in 2021 consumers were looking for a reason to celebrate as concern about the pandemic started to ease. Marty Weintraub says, “However, this holiday season consumers are dealing with worries from every angle be it economic headwinds, rising interest rates, inflationary pressures, the ‘COVID hangover’, new and reoccurring diseases, geopolitical uncertainty, and more.” He says across income brackets consumers have seen their buying power shrink and are trying to stretch their dollars more.

According to the survey, average household spending will fall 17 per cent this year to $1,520. Other findings include:

-The biggest spending cuts will be seen in key categories including non-gift electronics, down 55 percent, travel is expected to be down 30 per cent and non-gift clothing will drop 27 per cent.

-One in three plan to shop earlier this year, with 46 per cent believing it will help them get better deals. Of those who plan to reduce their holiday spending, 76 per cent are cutting down because of higher food prices, 67 per cent point to inflation worries and 60 per cent have economic concerns.

-Forty-one-per- cent of consumers plan to only buy what their family needs.

-15 per cent say they will shop and spend for themselves, down from last year.
Brand loyalty may be impacted. Consumer trust has to be earned.

According to the study, more Canadians are looking forward to getting together this year, with 41 per cent planning to host formal meals this year, up by six per cent from last year. Half of those who were surveyed plan to shop in store instead of online.