In 2024, Canadian shoppers filled stores and online carts more frequently, yet spent less per transaction, according to new data from Moneris, Canada’s leading payment solutions provider. The shift towards budget-conscious shopping has retailers anticipating a holiday season that may determine if the trend will continue.
“Throughout the year, it’s been a tale of two trends,” said Peter Goldsztajn, Vice President of Corporate Data Analytics at Moneris. “Consumers are making more purchases, but each purchase has been a little smaller.” Moneris reports a notable 13% increase in transaction counts year-over-year in February, while average transaction size dropped 6% in March.
As businesses prepare for the holiday rush, Moneris’ data suggests consumers may still be holding back, waiting for deals on Black Friday and Cyber Monday.
Holiday Shopping Trends Reveal Consumer Caution
Will smaller purchases continue?
Despite higher transaction counts throughout 2024, Moneris data shows that consumers are opting for smaller purchases, possibly reflecting concerns about inflation and budget management. “Heading into the holidays, transaction counts are on par with last year, while transaction size remains down,” Goldsztajn said. “What this suggests is consumers are holding out for the holidays, making this time of year even more important for businesses.”
Data from Moneris reveals an 8% increase in total volume in April, with transaction counts peaking at 13% higher in February compared to 2023. Yet the average transaction size was as low as 6% lower in March, demonstrating shoppers’ caution about spending.
Black Friday Still Reigns Over Cyber Monday
Consumers prefer brick-and-mortar shopping for Black Friday deals
Moneris’ insights from the 2023 holiday season show that Black Friday outpaced Cyber Monday in terms of consumer spending. The total spend on Black Friday surged 23% week-over-week, with particularly high growth in The Territories (+32%), Quebec (+31%), Ontario (+27%), and Manitoba (+22%). In contrast, Cyber Monday saw a modest 5% increase, mostly driven by transaction size rather than count.
“Sales are starting earlier and lasting longer, but Black Friday still stands out as a major spending day,” said Goldsztajn. “Between Black Friday and Cyber Monday, there’s a clear winner. Last year, Black Friday spending increased more than 20% week-over-week across Canada, while Cyber Monday’s rise was only 5%.”
2023 Holiday Insights Provide Clues for 2024
Higher transaction counts, stable total spend expected
In 2023, a pattern of higher transaction counts but lower transaction sizes resulted in only a 1% total spend increase for the season. Atlantic Canada and Quebec led the way in increased total spend, with a noticeable rise in transaction counts, while Saskatchewan and Manitoba experienced declines in total spend, primarily due to lower transaction sizes.
As Goldsztajn noted, “Looking at last year’s holiday season, we saw the same battle between the number of purchases and the size of each purchase. If the same trend continues, businesses could expect higher foot traffic but slightly smaller shopping carts, as consumers shop around for the best deals.”
Holiday Preparations: Tips for Businesses
Moneris has provided key recommendations for Canadian retailers to optimize sales and manage risks this holiday season:
- Review Best Practices: Ensure all employees understand security basics to minimize fraud.
- Optimize for In-Store and Online Sales: Use unified solutions like Moneris Total Commerce to cater to holiday shoppers wherever they choose to shop.
- Secure Payment Terminals: Monitor terminals and set password protections to prevent unauthorized access.
- Prepare for Peak Times: Use data insights from tools like the Merchant Direct Platform to analyze peak shopping times and adjust staffing levels accordingly.
For new businesses, Moneris advises using available data to anticipate busier periods and planning extra staffing to meet demand. For online transactions, leveraging secure payment options like 3D Secure 2.0 can shift liability to the card issuer, safeguarding retailers against chargebacks.
As Canadian businesses head into the 2024 holiday season, the question remains: will shoppers continue to prioritize value and caution, or will traditional holiday spending patterns prevail? With foot traffic up but shopping carts lighter, it could be a critical season for retailers to understand and meet consumers’ evolving needs.
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