This festive season, Canadian budgets for holiday goods are seeing a merry increase of 32% year-over-year – the most significant rise since 2019, says a report and survey by JLL Canada.
“Deal seeking behaviour shapes holiday shopping strategies, with nearly 90% of respondents looking for bargains. Saving money remains a top priority, with Gen Z emerging as the biggest savers. Regionally, B.C. and Ontario residents are channelling the generosity of the Ghost of Christmas Present with larger budgets and greater reliance on social media for purchasing decisions, while Albertans are frugal about their holiday wish-lists,” said the report.
“Shopping centres remain the preferred avenue for holiday purchases, with 74% of respondents choosing this option. However, internet platforms are close behind at 70%, indicating a diversified approach to gift-sourcing.
“Nearly all respondents intend to go to shopping centres, with many planning to spend between 30
and 90 minutes there. The weeks leading up to Black Friday are proving to be the most popular shopping period, especially for online purchases. Gift cards, clothing, and shoes top the list of sought-after items, reflecting a trend toward practical and flexible gift options. Mass merchandisers remain the top physical-store type for Canadian holiday shoppers, followed by clothing and accessories stores, then discount or dollar stores. Amazon has strengthened its lead as the preferred choice for Canadian shoppers, followed by Walmart and Canadian Tire.”
The report said Canadians plan to spread 32% more joy, with budgets for holiday goods increasing from an average of $739 in 2023 to $971 in 2024. JLL said this is the most significant increase since it began tracking holiday budgets in 2019.
“Additionally, Canadians are putting more emphasis on experiences, with plans to increase spending from $310 to $553, a 64% increase from last year. As a result, when considering both goods and experiences, the share of experiences increased from 30 to 36%, while the share of holiday expenses such as food and decorations decreased from 21 to 17%.”
The report said the younger the generation, the more likely the respondent is to save. While nearly half
of Zoomers choose to save, just over one third of Boomers do.
“For 42% of respondents, saving money remains a top priority this year. More Canadians will prioritize saving money or giving their friends and family what they want. At the same time, fewer Canadians will focus on avoiding the hassle and crowds and on having fun,” said JLL.
“More than half of Albertans will prioritize saving money this holiday season, compared with fewer than one-quarter of Saskatchewan shoppers. Saskatchewan is the only province where getting loved ones what they want is the top priority. In turn, Atlantic provinces are more likely to save money than the national average.”
The report said shopping centres remain the preferred shopping method in Canada, with 74% of respondents choosing this option, followed by online purchases from internet platforms at 70%.
“Most shopping methods will see increased use this year as shoppers seek more variety for their holiday gift giving. As a result, the average number of channels has increased from 2.4 to 2.7, indicating greater engagement across multiple channels. Buying online from brick-and-mortar stores with home delivery gained the most popularity this year, while buying online for curbside pickup saw almost no growth,” explained the report.
“More shoppers will visit shopping centres this holiday season, with nearly all respondents planning to join the festive fray. The average dwell time has also increased slightly from 65 to 66 minutes. With an expected increase in foot traffic in shopping centres, more shoppers plan to spend between 30 and 90 minutes, growing the percentage of respondents from 50 to 54%. In turn, the percentage of shoppers who spend less than 30 minutes or more than 90 minutes remains unchanged from last year’s holiday rush.
“In addition to those who go to eat and drink, those who spend more than 90 minutes also have a higher average holiday budget for goods and experiences. Those who spend less than 30 minutes, however, don’t necessarily have less to spend but tend to prefer to shop online for their festive finds.”
Related Retail Insider stories:
