Accenture’s latest Holiday Shopping Survey suggests a brighter season ahead for Canadian retailers, as consumers plan to boost their holiday spending by an average of 35% over last year. However, retailers should be cautiously optimistic as they navigate a holiday landscape shaped by price-sensitive shoppers, a wave of unspent gift cards, and consumers grappling with “buyers’ block.”
“It’s promising that consumers plan to spend more this holiday season,” says Suzana Colic, Managing Director of Retail Strategy and Consulting at Accenture Canada. “But price and value still matter to many. Retailers will need to cater to a group of deal seekers who love a bargain and are driven by promotions, incentives, and savings.”
Here’s a closer look at three trends that could define the 2024 holiday shopping season for Canadian retailers.
Trend 1: Cautious Optimism for Consumers Amid Heightened Deal-Seeking Behavior
Canadians are expected to spend about $780 on average this season, up from $578 last year. But with 71% of shoppers citing price and value as key factors, they’ll be watching closely for promotions before committing to purchases. A third of consumers say they’ll buy as they see discounts, underscoring the need for agile, data-driven sales strategies.
Retailers can respond by maximizing opportunities beyond high-traffic sales days like Black Friday and Cyber Monday. With many shoppers starting early, a dynamic sales approach throughout November and December—tailored to inventory levels and adjusted to demand—could boost profits and drive sales.
Trend 2: Unspent Gift Cards Are a Growing Retail Opportunity
Last holiday season, nearly two-thirds of Canadians received gift cards, with 38% planning to give them this year. Yet, 40% of recipients left an average of $136 unspent on these cards, signaling a major opportunity for retailers to boost revenue and customer loyalty.
For retailers, a few adjustments can encourage cardholders to use their balances. Easy-to-access balance checks, reminders for unused amounts, and smooth in-store and online redemption options can enhance the gift card experience. By personalizing this experience, such as suggesting products that align with card values, retailers can cultivate repeat visits and deeper brand connections.
Trend 3: Shoppers Grapple with “Buyers’ Block” in the Search for the Perfect Gift
Finding the perfect gift is often a challenge, and Accenture’s survey shows that 64% of shoppers are unsure where to begin, while 71% worry about making a wrong choice. This overwhelming choice leads to “buyers’ block,” with 79% of shoppers likely to abandon their carts due to indecision, and 27% potentially taking their business elsewhere.
Physical stores may be a respite for these uncertain shoppers, with 52% preferring to shop in person to see and feel products. Retailers who create engaging store environments, like dedicated areas for gift wrapping or personalized services, can attract these shoppers. Additionally, tech-based solutions are set to play a role: Accenture’s survey found that 89% of consumers believe AI could improve their holiday shopping experience by offering personalized gift recommendations.
With Canadian consumers looking to spend more but demanding value and guidance along the way, retailers who stay adaptable and provide both deals and thoughtful shopping experiences could see this holiday season turn out to be one of growth.
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