JLL Consumer Survey Promises Different Kind of Holiday Shopping Season in Canada

Date:

Share post:

The impacts of the COVID-19 global pandemic and continuing government-imposed health restrictions are setting the stage for a 2020 holiday shopping season that will play out in a significantly different manner than those previous. Shopping malls may not be as crowded as they usually are this time of year, with their aisleways buzzing and bustling food courts crammed with excited shoppers. And, Main Streets in most urban centres across the country will likely experience a dip in foot traffic and activity as well. However, as most Canadian consumers state an intention to spend the same amount on their holiday shopping as they did last year, the way in which they make their purchases is expected to represent the greatest change to the immensely important upcoming retail shopping season.

According to the recently released 2020 Holiday Shopping Survey – a report conducted by the commercial real estate and property investment company, JLL – Canadian consumers plan to spend an average of $428 on gifts this year, an amount that is consistent with numbers reported in 2019. Given the current circumstances surrounding the pandemic and the negative effects it’s imposed on the retail industry, these early predictions concerning consumer spending are likely to ring nicely in the ears of merchants everywhere. And although these numbers may seem like a surprise to those expecting a decrease in spending, Tim Sanderson, Executive Vice President, Retail, Canada at JLL, explains some of the forces and variables that helped drive the survey results.

“COVID-19 has impacted everyone’s lives in a really profound way,” Sanderson states. “And that’s shown up significantly in recent spending as well. Canadians have spent less on travel and entertainment this year than they usually would and have been spending a lot of time at home with friends and family. As a result, overall spend will be down this holiday season, but consumers are showing a willingness to spend the same amount on gifts as they did last year, with some planning to spend over $1,000, which is well above the average.”

Shopping Early and Online

Among those planning to spend, Boomers reported the highest budget for gifts at $519 and Gen Z the lowest at $259. Despite the generation, however, more Canadians plan to start their holiday shopping earlier this year with one-third of respondents indicating an intention to begin making purchases during the upcoming Black Friday/Cyber Monday weekend, representing a five percent increase over last year. Considering the different complexion of the 2020 holiday shopping season, it could be suggested that even further importance will be lent to the performance of retailers during this year’s Black Friday sales and events.

Although Sanderson recognizes the significance of the Canadian consumer’s intention to start their shopping early, he points to the ways in which they plan to purchase their items as the most compelling revelation within the report. When asked how the impacts of COVID-19 might change their shopping behaviour, 37 percent of respondents said that they were planning to do more of their shopping online, with 32 percent stating that they would be visiting fewer stores this year. It’s a change in shopping patterns that Sanderson says will be significant this holiday season, a change that he describes as being “fast-forwarded” by the pandemic.

“Canadians have been very selective about the physical retail locations that they’ve visited over the past eight-plus months,” he says. “And this is a trend that we expect to continue through the holiday shopping season. The migration of consumers toward online shopping has been evident for some time, but it’s a trend that’s been accelerated by the impacts of COVID. It’s also a trend that’s being driven by the younger generations. They are technologically savvy by nature and show more of a willingness to shop online. It’s a change in shopping patterns that will bear significant influence on the success of many retailers this holiday season.”

Satisfying a Need for Convenience

Shoppers between the ages of 18 and 24 are leading the migration, with more than half of those responding to the survey expressing a preference to shop for their products online, compared to just 29 percent of respondents aged 55 or over stating the same preference. The continued increase in e-commerce adoption by consumers is being influenced by many factors, including a general shift in behaviour toward a more convenient and seamless shopping experience. It’s helping to draw a clear line between those who offer e-commerce capabilities and those who don’t, primarily benefitting larger online retail entities like Amazon.

However, the report also suggests that brick-and-mortar retail locations can also leverage the consumer’s desire for convenience through the offer of curbside pickup. The option, which was virtually non-existent last holiday season, seems to be a popular one with consumers this time around, with 18 percent reporting plans to take advantage of it wherever it’s made available by retailers. It’s just one of a variety of ways by which consumers are looking to save time and stay safe this holiday season. And, it’s also a way in which some retailers can capitalize on local traffic and engage with those within the communities they serve, an opportunity that Sanderson suggests might reap the biggest rewards for retailers that realize its potential.

“Local businesses are the fabric of the communities they serve. And I think that current circumstances can be favourable for many retailers to leverage or increase their presence within their communities and attract customers who are ready to embrace the mentality of shopping local. What we’ve seen throughout the COVID period is that people aren’t going on any European vacations or ski trips this winter. Instead, they’re spending their money on their homes and their families and loved ones. And I think it’s going to be reflected in spending that is closer to home, too, resulting in crucial support for the businesses that help our communities grow and succeed.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

West Edmonton Mall Continues to Expand Luxury Retail with Addition of Moncler; Tiffany Marks 10 Years

Italian luxury brand Moncler is the latest to join the massive shopping centre with retailers such as Louis Vuitton, Balenciaga and Gucci. The mall’s first luxury store, Tiffany & Co. is also marking 10 years. 

Canadian Consumers to Prioritize Brick-and-Mortar Retail into December [Report/Interview]

Electronics are among the top gifts, with moderate growth in the restaurant and grocery sectors expected while also noting a controlled promotional approach due to slowing inflation.

Salesforce’s Rob Garf Discusses Canadian Retailers’ Strategies Amidst Q3 E-commerce Slowdown [Report/Interview]

Garf discusses a report showing a 9% decline in Canadian e-commerce growth, indicating a consumer expectation for discounts in the upcoming months. He discusses a consumer shift and how retailers can address it.

Early Signs Point to a Strong Holiday Shopping Season in Canada Despite Economic Challenges

Reports indicate that last Saturday and Sunday saw the biggest surge in consumer spending so far, with predictions made as we head into December.

Specsavers Set to Reach 100 Canadian Locations in Early 2024, Expanding into New Markets [Interviews]

The eyewear retailer, which entered Canada in 2021, is rapidly expanding and looking to gain market share from established players.

Burton Snowboards Transforms Toronto Flagship for [ak] Collection as Brand Looks to Expand [Interview/Photos]

The high-performance AK collection is a new focus, with Burton planning to grow its retail presence in Canada with more stores in key markets.

Liz Rodbell Returns to Hudson’s Bay as President and CEO Following Sophia Hwang-Judiesch Departure 

Rodbell led Hudson’s Bay and Lord & Taylor from 2013 to 2017, and she returns at a challenging time for HBC. 

Upper Canada Mall in Newmarket Adding Tenants as Area Sees Rapid Population Growth [Interview]

The super regional centre, considered the leader north of Toronto, is adding new retailers and concepts to attract consumers.

Lullaboo Nursery and Childcare Centre Expanding into Non-Traditional Locations Including Shopping Centres [Interview]

The company's CEO says that finding space is a challenge for the childcare concept, which is seeing significant demand from parents.

Gucci Opens Impressive Main Floor ‘World Of’ Boutique Concession at Holt Renfrew Calgary [Photos]

The approximately 4,000 square foot space houses the Italian luxury brand’s full collection for women and men. 

Lina’s Market Opens 1st Food Hall in Calgary [Interview/Photos]

The innovative space combines a grocery store, café, and food hall with nine diverse stations, introducing a fresh dining experience and contributing to the growing trend of European-style market halls in Canada.

PwC Survey Shows Canadians Ready to Boost Holiday Spending Despite Economic Challenges [Interview]

Canadian consumers are gearing up for a resilient holiday season, with a survey revealing an increase in holiday spending compared to the previous year — that includes a notable resurgence in in-store shopping, particularly among Gen X and Gen Z.

Mastermind Toys: A Surprising Entry into Creditor Protection Suggests Omnichannel isn’t Enough Anymore [Op-Ed]

Mastermind Toys' recent entry into creditor protection underscores the changing dynamics of retail success, challenging the effectiveness of traditional strategies. An expert says the retailer needs to focus on transformative experiences.

Discretionary Spend Remains Low as Canadian Retail Sales Remain Consistent [JC Williams Group Analysis]

Monthly StatCan numbers indicate a range of category performance numbers for the Canadian retail industry which is seeing headwinds.

Food Industry in Canada to See Dynamic Changes with Innovation and Evolving Consumers [Op-Ed]

Sylvain Charlebois discusses the transformative landscape of the food and beverage industry, emphasizing key trends shaped by technology, evolving consumer preferences, and sustainability concerns.

New Canadians Need to be Welcomed into the Retail Workforce as Industry Shifts [Podcast]

Suzanne Sears highlights the challenges faced by new Canadians in the job market, emphasizing the need for retailers to recognize the large pool of highly educated, underemployed individuals in the Canadian workforce.

The Impact of Ontario’s Salary Disclosure Legislation on Retail [Podcast]

The conversation explores potential challenges for retailers, including concerns about exploiting pay bands to avoid transparency and the possibility of increased costs and necessary adjustments in compensation. The discussion also highlights the return of baby boomers to part-time retail positions.

Indigenous-Owned Streetwear Brand SECTION 35 Launches 1st Store, Eyes Expansion to Vancouver Flagship [Interview]

The space serves as a smaller-scale entry into retail, with plans to expand to a flagship store in Vancouver allowing the brand to directly engage with customers and showcase its full range of products, including collaborations with other brands.

What Drives People to Panic Buy During Times of Crisis: A New Study Sheds Light on the Psychology of Consumers [Op-Ed]

A study identified four distinct consumer groups based on psychological traits, each displaying unique purchasing habits influenced by factors like fear of embarrassment and fear of missing out. Understanding these consumer motivations can help retailers.

Price Reduction for 202 Queen St. W. Retail Building in Downtown Toronto 

The four-level commercial building, home to Ontario’s first legal cannabis store, is now priced at $1.6m less than its appraised value.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

West Edmonton Mall Continues to Expand Luxury Retail with Addition of Moncler; Tiffany Marks 10 Years

Italian luxury brand Moncler is the latest to join the massive shopping centre with retailers such as Louis Vuitton, Balenciaga and Gucci. The mall’s first luxury store, Tiffany & Co. is also marking 10 years. 

Canadian Consumers to Prioritize Brick-and-Mortar Retail into December [Report/Interview]

Electronics are among the top gifts, with moderate growth in the restaurant and grocery sectors expected while also noting a controlled promotional approach due to slowing inflation.

Salesforce’s Rob Garf Discusses Canadian Retailers’ Strategies Amidst Q3 E-commerce Slowdown [Report/Interview]

Garf discusses a report showing a 9% decline in Canadian e-commerce growth, indicating a consumer expectation for discounts in the upcoming months. He discusses a consumer shift and how retailers can address it.

Early Signs Point to a Strong Holiday Shopping Season in Canada Despite Economic Challenges

Reports indicate that last Saturday and Sunday saw the biggest surge in consumer spending so far, with predictions made as we head into December.

Specsavers Set to Reach 100 Canadian Locations in Early 2024, Expanding into New Markets [Interviews]

The eyewear retailer, which entered Canada in 2021, is rapidly expanding and looking to gain market share from established players.

Burton Snowboards Transforms Toronto Flagship for [ak] Collection as Brand Looks to Expand [Interview/Photos]

The high-performance AK collection is a new focus, with Burton planning to grow its retail presence in Canada with more stores in key markets.

Liz Rodbell Returns to Hudson’s Bay as President and CEO Following Sophia Hwang-Judiesch Departure 

Rodbell led Hudson’s Bay and Lord & Taylor from 2013 to 2017, and she returns at a challenging time for HBC. 

Upper Canada Mall in Newmarket Adding Tenants as Area Sees Rapid Population Growth [Interview]

The super regional centre, considered the leader north of Toronto, is adding new retailers and concepts to attract consumers.

Lullaboo Nursery and Childcare Centre Expanding into Non-Traditional Locations Including Shopping Centres [Interview]

The company's CEO says that finding space is a challenge for the childcare concept, which is seeing significant demand from parents.

Gucci Opens Impressive Main Floor ‘World Of’ Boutique Concession at Holt Renfrew Calgary [Photos]

The approximately 4,000 square foot space houses the Italian luxury brand’s full collection for women and men. 

Lina’s Market Opens 1st Food Hall in Calgary [Interview/Photos]

The innovative space combines a grocery store, café, and food hall with nine diverse stations, introducing a fresh dining experience and contributing to the growing trend of European-style market halls in Canada.

PwC Survey Shows Canadians Ready to Boost Holiday Spending Despite Economic Challenges [Interview]

Canadian consumers are gearing up for a resilient holiday season, with a survey revealing an increase in holiday spending compared to the previous year — that includes a notable resurgence in in-store shopping, particularly among Gen X and Gen Z.

Mastermind Toys: A Surprising Entry into Creditor Protection Suggests Omnichannel isn’t Enough Anymore [Op-Ed]

Mastermind Toys' recent entry into creditor protection underscores the changing dynamics of retail success, challenging the effectiveness of traditional strategies. An expert says the retailer needs to focus on transformative experiences.

Discretionary Spend Remains Low as Canadian Retail Sales Remain Consistent [JC Williams Group Analysis]

Monthly StatCan numbers indicate a range of category performance numbers for the Canadian retail industry which is seeing headwinds.

Food Industry in Canada to See Dynamic Changes with Innovation and Evolving Consumers [Op-Ed]

Sylvain Charlebois discusses the transformative landscape of the food and beverage industry, emphasizing key trends shaped by technology, evolving consumer preferences, and sustainability concerns.

New Canadians Need to be Welcomed into the Retail Workforce as Industry Shifts [Podcast]

Suzanne Sears highlights the challenges faced by new Canadians in the job market, emphasizing the need for retailers to recognize the large pool of highly educated, underemployed individuals in the Canadian workforce.

The Impact of Ontario’s Salary Disclosure Legislation on Retail [Podcast]

The conversation explores potential challenges for retailers, including concerns about exploiting pay bands to avoid transparency and the possibility of increased costs and necessary adjustments in compensation. The discussion also highlights the return of baby boomers to part-time retail positions.

Indigenous-Owned Streetwear Brand SECTION 35 Launches 1st Store, Eyes Expansion to Vancouver Flagship [Interview]

The space serves as a smaller-scale entry into retail, with plans to expand to a flagship store in Vancouver allowing the brand to directly engage with customers and showcase its full range of products, including collaborations with other brands.

What Drives People to Panic Buy During Times of Crisis: A New Study Sheds Light on the Psychology of Consumers [Op-Ed]

A study identified four distinct consumer groups based on psychological traits, each displaying unique purchasing habits influenced by factors like fear of embarrassment and fear of missing out. Understanding these consumer motivations can help retailers.

Price Reduction for 202 Queen St. W. Retail Building in Downtown Toronto 

The four-level commercial building, home to Ontario’s first legal cannabis store, is now priced at $1.6m less than its appraised value.