Canadian consumers are increasingly frugal as economic uncertainty looms, with Black Friday and Holiday spending reflecting careful decision-making, according to recent surveys conducted by DIG360 in partnership with the Angus Reid Group.
“This year, we observed that frugality isn’t just a trend but a dominant force,” said David Ian Gray, founder and strategist at DIG360. “Shoppers are prioritizing needs over wants, hunting for deals out of necessity, not excitement.”
The surveys, which took place immediately after Cyber Monday and the first week of December, paint a picture of cautious spending and growing cynicism about holiday promotions.
Black Friday Participation Holds Steady, but Cynicism Grows
Approximately 70% of Canadians engaged in Black Friday promotions this year, consistent with 2023 but markedly higher than pre-pandemic levels of around 50%. Despite this, Gray highlighted an underlying dissatisfaction among consumers: “Most shoppers rated the deals as poor, which aligns with retailers attempting to protect margins.”
In fact, 49% of those who made purchases reported encountering misleading advertisements or what they considered “fake discounts”. Gray noted this growing cynicism could present long-term risks for retailers: “The more consumers distrust the deals, the less effective these promotions will become.”
A notable shift in 2024 was the concentration of purchasing in the final week of November, which Gray attributes to last-minute decision-making. “More units likely moved, but they came at lower price points, benefiting value-focused retailers the most,” he explained.
Black Friday Promotions Overwhelm Many Consumers
The survey uncovered a notable consumer sentiment: promotional fatigue. Over half (56%) of Canadians reported feeling overwhelmed by the sheer volume of Black Friday advertising.
“This is a signal for the industry to re-evaluate its reliance on daily promotions,” said Gray. “The constant push of discounts – may deliver short-term gains, but it erodes brand loyalty and consumer trust over time.”
Postal Strike Impacts Online Shopping
With the Canada Post strike beginning mid-November, 64% of online Black Friday shoppers reported shipping delays. This figure was up slightly from 56% in 2023, signaling mild but notable disruptions.
Looking ahead, concerns about delivery timelines remain high: 71% of online Black Friday buyers expressed apprehension about receiving their holiday purchases on time. This uncertainty has made brick-and-mortar stores an attractive fallback.
“Physical stores are becoming more critical as we approach Christmas,” Gray observed. “When shoppers want certainty, they’re more likely to rely on in-store shopping.”
Holiday Gift Spending Down Amid Economic Constraints
As December began, 87% of Canadians planned to purchase gifts for the holiday season. However, the surveys revealed a significant divide along income lines:
- 21% of households earning under $50,000 reported they would not buy gifts.
- In comparison, just 7% of households earning over $100,000 planned to skip gifting entirely.
Self-reporting spending is down for Holidays in every category, including travel, Holiday events, and dining out. Gray pointed to this as evidence of economic strain. “We’re expecting fewer gifts per household and smaller ticket items prioritized. It’s not that people are skipping gifting altogether, but they are being selective, postponing expensive items until the price is right.” The only constant reported was spending time with family and friends – just not at a cost.
Amazon Dominates, but Physical Stores Play Key Role
When asked where shoppers sought inspiration for holiday gift ideas, Amazon dominated the results:
- 63% of respondents turned to Amazon for ideas.
- TEMU and Shein registered minimal influence, at 7% and 3% respectively.
- Despite media attention, only 3% of shoppers reported using AI tools like ChatGPT for inspiration.
The physical store resurgence also stood out, with 49% of respondents identifying stores as a key source of inspiration, second only to Amazon. “The store remains omni-relevant, and 60% view it as the key channel in the final two weeks before Christmas,” said Gray. “Shoppers want certainty, and physical retail delivers that when online reliability falters.”
Notably, 41% of online shoppers had already experienced delayed, lost, or incorrect orders this season, further emphasizing the dependability of in-store shopping.
Boxing Day Outlook: Fewer Expectations for Deals
Looking ahead, 36% of holiday gift shoppers plan to shop on Boxing Day, a figure below the 50% participation seen on Black Friday this year. However, the surveys revealed deep skepticism: 72% of Canadians believe Boxing Day sales will offer no better deals than those seen on Black Friday.
“The consumer cynicism is clear,” Gray noted. “Shoppers are fatigued, and many simply don’t trust these promotions anymore.”
For retailers, this fatigue may signal a need to rethink their strategies. Rather than prioritizing deep discounts to drive unit sales, Gray suggests focusing on margins and overall brand value.
Second-Hand Gifting on the Rise
Another emerging trend is the mainstreaming of second-hand and vintage gifting. Approximately 31% of Canadian gift-buyers reported incorporating resale, thrift, or vintage products into their holiday shopping.
“The stigma around second-hand gifting appears to be diminishing,” Gray observed. “This reflects both a shift in consumer mindset and the ongoing focus on affordability.”
Performance Marketing and the Long-Term Risks for Retailers
One of the most significant concerns raised in the surveys is the impact of performance marketing at the expense of brand marketing on retail strategies. Gray emphasized that while constant discount-driven messaging can generate short-term sales, it comes at a long-term cost.
“Over-reliance on promotions trains consumers to expect deals, undermines brand equity, and cuts into margins,” he said. “Retailers need to strike a balance between driving immediate sales and building sustainable customer relationships.”
Conclusion: A Cautious, Cynical Consumer Base
The findings from DIG360 and Angus Reid Group highlight a Canadian consumer base that is increasingly cautious, frugal, and cynical about holiday promotions. While Black Friday participation remains high, satisfaction with deals is low, and shoppers are carefully monitoring their budgets.
Physical stores remain a vital player in the retail landscape, particularly as delivery challenges persist. Meanwhile, Boxing Day faces declining consumer enthusiasm as shoppers express doubts about the value of post-Christmas promotions.
“Retailers face a challenging end to 2024,” Gray concluded. “Those who prioritize transparency, value, and reliability will fare best in the face of economic uncertainty. Will this foreshadow more restructurings in 2025? Time will tell.”
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Canadian shoppers are getting smarter, not spendier—cautious, deal-savvy, and craving trust over hype. Retailers, take note: value and transparency now matter more than flashy discounts.
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Excellent analysis! The findings clearly highlight a cautious, value-driven consumer shift that retailers must strategically address.
Making strategic shifts right at the tricky turns of the austere consumer trend.
I’ve definitely noticed more people heading into brick-and-mortar stores lately. It seems like everyone is trying to find the best deals in person this year.
Great breakdown of Canadian consumer behavior this holiday season. The shift toward value and in-store shopping really resonates—people want reliability over hype.
This was a really insightful look at how Canadians are shopping this year. I found the point about frugality being a necessity rather than just a trend particularly interesting. It’s also eye-opening to see how cynicism is growing around holiday promotions despite participation holding steady!