New research from Boston Consulting Group offers insights into Canadian consumer behavior heading into Black Friday.
Key research findings include:
- 83% of Canadians plan to shop during Black Friday and other major sales events this year, and 34% are already using or planning to use GenAI to find the best deals – a sign that AI is reshaping how people approach holiday shopping;
- Canadians plan to spend CA$445 on average, a 7% increase from 2023.
- 85% of Canadians list price hikes on essentials as their top worry, higher than the global average.
- Gen Z and Millennials are set to outspend Gen X and Boomers, with Millennials expected to spend CA$490 compared to CA$380 for Boomers.
- Higher earners are taking advantage of deals, while others are cutting back on non-essential purchases.
“As inflation squeezes household budgets, generative AI is empowering consumers to make fast, informed decisions about what and where they buy,” said Jessica Distler, a BCG managing director and partner, and coauthor of the study. “This Black Friday and beyond, GenAI-enabled consumers will push retailers to up their game.”
“Retailers need to appreciate just how savvy consumers are these days. They start shopping early, and they want to see real, straightforward deals,” said Nate Shenck, BCG’s global head of retail. “Brands that deliver clear value with a personalized touch are best positioned to win over consumers this holiday season.”
The 2024 Black Friday survey by Boston Consulting Group examined the spending plans of more than 10,000 consumers across nine markets (Australia, Canada, Germany, France, Spain, Switzerland, Poland, the UK, and the US)
The company said more than a third of consumers (38%) either have already used GenAI in their shopping journey or are planning to use GenAI to shop the major sales events. GenAI use is even more pronounced among younger consumers, with 46% of Millennials and 52% of Gen Zers already using or planning to use GenAI to help them shop. Consumers report that they’re leaning on the technology to find the best deals, research products, and compare items. Among those who have already experimented with GenAI, more than 80% agree that the technology helps them shop smarter, and nearly 40% believe they’ll use it more while shopping in the future, said the report.
Despite Cost-of-Living Crisis, Consumers Still Plan to Spend
The report said price increases on essential goods (81%) and ongoing inflation (71%) remain top concerns for consumers. In response, 49% reported that they have cut back on nonessential purchases in the past three months, 45% check and compare prices more frequently, and 41% buy more at discounters or value retailers.
Despite these concerns, up to 75% of consumers plan to shop on Black Friday, Cyber Monday, or Singles’ Day this year. Price conscious consumers are turning to the big sales events to get a head start on holiday shopping and to fulfill their basic needs: 66% intend to buy gifts and 59% plan to stock up on essentials. Adults clothing and consumer electronics remain the most popular product categories, added the report.
If the Price Is Right
In times of inflation, consumers are looking for hefty markdowns. When asked what would qualify as a “good deal,” shoppers said they expect at least a 30% discount. This expectation is even higher in categories such as adults’ clothing where consumers want at least 36% off, said the report.
“They also want simplicity: across every country surveyed, consumers said their preferred type of deal was a clear discount on all items. Exclusive events and gamified activities were the least popular, although gamification was slightly more popular with Gen Z consumers compared to other age groups,” said Boston Consulting Group.
“Price-sensitive consumers aren’t waiting until Black Friday—they’re on the hunt early. More than 60% are already looking for deals as soon as October or early November, providing retailers with an extended time to influence consumers’ choice.”
Price-sensitive consumers this year are also expected to shop at discount stores, according to many other surveys on holiday shopping.
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