Increases in inflation for shoppers and the need for wage increases for retail workers clearly shows that the retail landscape is growing but Canadians’ needs are shifting.
And with the holiday season fast approaching, more surveys and reports are indicating that Canadians are looking for ways to spend their money wisely.
Rakuten.ca, Canada’s leading shopping rewards program that offers Cash Back and deals from consumers’ favourite brands, commissioned its annual Holiday Spend Survey which found that four-in-five (81 per cent) Canadians are stressed about the cost of buying holiday gifts this year. The survey data highlights that this anticipated stress is due to inflation with gift prices, coordinating schedules, and hosting loved ones.
Key highlights from the survey:
- Average anticipated holiday spend is $637, up from $570 in 2023;
- Canadians anticipated to spend the most include parents ($791) – dads at $831 and moms at $762;
- Many Canadians are planning to use loyalty programs like Rakuten.ca to augment their budgets with cash back (58 per cent);
- More Canadians than ever are planning to create a holiday budget (88 per cent), up from an average of 76 per cent in 2023.
Danai Mushayandebvu, Social Media and PR Specialist, Rakuten Rewards, said Rakuten Rewards is a Cash Back application where its members, seven million of which are in Canada, have the opportunity to earn Cash Back from their favourite stores when they make a purchase.
“The concept is that by connecting shoppers with the top brands . . . those merchants can provide Cash Back on those items that we use every single day while our retail partners find new loyal customers and drive record sales,” she said, adding those Canadian members earn more than $140 million in Cash Back at their favourite stores.
“The retail landscape is still growing but I think what is happening is Canadians specifically are becoming more savvy because times are changing. We’re not earning as much per se and the cost of living is higher. So we can get more bang for our buck so to speak and programs like this are advantageous. We’re going to shop anyway. That’s the bottom line. That we are shoppers and if we can make the most of it then why not.”
Mushayandebvu said the Rakuten survey suggests Canadians are budgeting better for the holidays and their anticipated spending.
“So in 2023, 76 per cent of shoppers were budgeting while this year from the results it shows that 88 per cent of the participants are budgeting. It’s just a reflection of the landscape where we want to spend but we also want to be mindful in that spending and a lot of mindfulness in financial planning is budgeting,” she said.
“Regardless of all of this, Canadians are planning on spending 12 per cent more than they did last year. And I think it does come down to that budgeting. If someone is spending willy nilly, they might not be able to spend as much but if you’re budgeting and planning ahead then it means you’re probably actually able to spend more when the time comes.”
Mushayandebvu said Rakuten membership continues to grow because unlike other rewards programs this is Cash Back versus points.
“So the return on investment is immediate. You’re getting a cheque in the mail every quarter and you can see and spend that money right away versus like a points program where you know you can collect points for the last 10 years and wondering where those points go to. I think there’s something with the gratification unlike other programs and it’s very enticing.”
Since launching in 2012, Rakuten.ca connects consumers with over 750 stores,.
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