The weight of the season
Our 2023 holiday retail outlook shows Canadians are feeling cautious amid economic challenges this
season.
Canadians are approaching the holiday season with apprehension this year. Higher interest rates are
squeezing budgets and have households tightening their belts and considering trade-offs to prevent
their holiday expenses from causing financial distress in the New Year. In this uncertain economy,
the retailers that deliver the most value for the dollar will warm the heads and hearts of
consumers.
Consumers look to spend smart
Economic strain trims holiday budgets, encouraging savvy and selective shopping.
Price increases challenge consumer trust
Shoppers are prioritizing essentials and questioning price hikes this holiday season.
Value tops the wish list
Canadians will broaden their gift hunt, seeking the best deals across more stores and sites.
E-commerce plateau in Canada
Online stability sparks focus on customer experience.
The true price of sustainability
While giving sustainably is in, retailer claims are in question.
Consumers look to spend smart
This year, Canadians are scaling back their spending. The weight of escalating housing expenses,
soaring grocery prices, and a potential recession has dampened the festive spirit. In response,
holiday spend is expected to be down 11% from last year, signalling fewer splurges and more
thoughtful purchases across the board.
-11%
overall decrease in holiday spending
67%
of Canadians are concerned about the impacts
of a recession
55%
are concerned about increases in rent/mortgage payments
33%
are worried about how they will pay for gifts
Price increases challenge consumer trust
Tough decisions and strategic choices define this holiday shopping season, with nearly half of
consumers (48%) planning to buy only what their family needs. They’re growing wary of potential
price hikes, hinting at
wavering trust in the retail scene.
76%
are preparing for
steeper price tags
steeper price tags
73%
think, rightly or wrongly, that retailers may be hiking prices unfairly
How will Canadians be spending during the holiday season?
Expecting higher prices this holiday season, shoppers will be careful with their spending.
Value tops the wish list
This year, Canadian shoppers are making conscious choices to keep within their holiday budgets.
Determined to make every dollar count, consumers are visiting 37% more stores and websites than last
year,
searching both in person and online for the best value and deals.
55%
will spend their money in stores
41%
will opt for shopping online
E-commerce plateau in Canada
While more Canadians than ever shopped for the holidays online in 2020,
that number’s sliding down: only 41% of plan to do so in 2023. Now, consumers
are mixing up their delivery choices.
63%
of shoppers will
opt for standard delivery
48%
will seek same-day
or next-day
delivery
33%
will buy online
and pick up in-store
Returns matter. A lot.
Hassle-free returns are shaping the Canadian holiday shopping scene. As some retailers introduce
return fees or axe returns altogether for sale items, 57% of consumers let return policies steer
their buying choices.
Is Canada's Prime membership bubble bursting?
Amazon is still the destination of choice this year, but not just for deals. While Prime
memberships dipped to 46% from 47%—a first since 2020—only 12% of consumers are considering
other retail subscriptions.
The true price of sustainability
Economic pressures aren't stopping 37% of Canadians from choosing eco-friendly gifts whenever
possible. But many people remain skeptical of brands’ sustainability claims.
55%
of consumers are willing to pay more for sustainable products
70%
believe brands/retailers should be responsible for making sustainable products
44%
don’t believe most sustainable claims made by brands
Canadians are on a hunt for holiday value. They’re looking to make every dollar count, whether
that’s online or in the store. For retailers, it's not just about price—it's about crafting
genuine value at every touchpoint. From swift checkouts to smooth returns, retailers that adapt
will ring in the New Year on a positive note.
Key contact
Marty Weintraub
National Retail Leader
Marty leads the National Retail Consulting practice for Canada. For
the past 20 years, he has advised retail clients on developing and
implementing enterprise-wide retail transformation and operational
improvement programs that impact business processes, organization
designs and technology enablement. These programs result in his
clients realizing significant improvements to sales, margin, SG&A and
working capital in a world of retailing where traditional ways of
operating are no longer sufficient.