Global pressures are reshaping how Canadians shop — and the shift is showing up on their receipts. New survey data from Interac reveals that 78% of Canadians have redirected at least one monthly purchase from a big-box or international retailer to a local Canadian business since tariffs were first announced, with a quarter of Canadians shifting three to five purchases a month, and a fifth of Canadians pivoting six or more.
Interac Debit transaction data reflects the purchase pivot: for the first time in recent years, small and medium sized businesses (SMBs) consistently outpaced larger merchants in year-over-year volume growth between April-July 2025. During this period, SMBs saw an incremental 15 million Interac Debit transactions, compared with the same months in 2024, it said.
“Earlier this year, consumers told us they intended to shop more locally in light of tariffs — and they’ve followed through. While larger merchants have traditionally led in Interac Debit volume growth, small and medium businesses are now growing their volume at a faster rate,” said Debbie Gamble, Group Head, Chief Strategy & Marketing Officer, Interac. “Our summer data snapshot shows Canadians are using their spending power with great intention — responding to global pressures through where they shop, what they buy and how they choose to pay.”
The new Interac data reveals five standout ways Canadians are spending this summer:
- Small restaurants win big. Following tariff announcements, restaurants saw the most dramatic change. Within the April-July 2025 time period, volume growth for SMB restaurants was twice as large as their chain counterparts. Convenience stores and tourism-related SMBs also saw a boost.
- Little treats, big comfort. At a time of heightened global economic uncertainty, many Canadians are turning to small indulgences — especially food — for comfort and connection. Nearly two-thirds (64 per cent) say affordable treats help lift their mood, and 59 per cent say it feels even better when those purchases support local businesses. When asked to compare their spending this summer versus last:
- 42 per cent of Canadians are spending more on fresh produce from farmers’ markets
- 30 per cent are spending more on baked goods from local bakeries
- 21 per cent are spending more on premium jams, sauces and honeys
- Essential luxuries. Interac also asked Canadians what non-essential purchases they would never cut from their budget – even when feeling financially squeezed.
- More than a third (35 per cent) of Boomers and 27 per cent of Millennials say purchases toward their health and wellness is the category they are least likely to eliminate from their budgets.
- Three in 10 (30 per cent) of Gen Z and 23 per cent of Gen X report that streaming services are their number one spending priority they would not discontinue.
- A quarter of Gen Zs (26 per cent) would not forgo skincare or personal care products.
- Made in Canada — or not made in the U.S. The preference for Canadian-made goods remains strong, with 70 per cent of Canadians checking product labels for Canadian origin before buying. If a Canadian option isn’t available, two-thirds (65 per cent) say they prioritize goods made outside the U.S.
- Tap Canadian. Supporting local isn’t just about where Canadians shop — it’s also about how they pay. Four in 10 Canadians (42 per cent) were unaware that using Interac Debit can help small businesses save on transaction fees and keep more money in Canada. Choosing this 100 per cent Canadian payment method helps dollars stay local, can support small businesses in their growth and hire and reinvest in their communities. Nearly six in 10 Gen Zs (57 per cent) say knowing the benefits makes them more likely to pay with Interac Debit.
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This snapshot really highlights how global economic pressures are influencing everyday choices. It’s interesting to see how Canadians are adjusting their summer spending—balancing essentials with lifestyle priorities in a changing financial landscape.