Canadian consumers are expected to spend nearly $9.3 billion over the Black Friday/Cyber Monday weekend, coming up FridayNovember 28. While Amazon and Walmart remain the top shopping destinations for Canadians this year, new data from Xero, the global small business platform, demonstrates that Canadians are also keeping small businesses at the top of their shopping lists.
According to the report, across all regions, most Canadians intend to include small businesses in their holiday shopping this year, even when it costs more to do so, and 1 in 4 Canadians plan to increase their small business spending this year compared to last year.
Report Highlights:
- 80% of Canadians feel a sense of pride when shopping from small businesses;
- 70% are willing to pay more for a product or service to support small businesses;
- 1 in 4 Canadians (26%) plan to spend more with small businesses this year;
- Boomers were more likely to be planning to shop from small businesses and take pride in shopping from small businesses than younger Canadians (69% and 83% vs. 65% and 70% nationally, respectively);
- Canadian women were more likely to be planning to shop from small businesses and take pride in shopping from small businesses than their male counterparts (70% and 84% vs. 60% and 75%, respectively).
Ashalee Mohamed, Head of Canada GTM, Xero Canada, said more than two-thirds of Canadian consumers plan to shop small this year.
“Canadian consumers are rolling up their sleeves to support local, and it’s a very deliberate movement. Across all regions, even when it costs more, most Canadians intend to include small businesses in their holiday shopping this year. In fact, one in four Canadians (26%) plan to increase their small business spending this year compared to last,” she said.
“The other takeaway that stood out is just how important shopping small has become to Canadians. Sixty-nine per cent nationally say that shopping small is more important this year than in previous years. Canadian consumers have felt the impacts of a weakened Canadian economy first-hand this year, yet this data demonstrates that most consumers feel a continued commitment to support small Canadian businesses as we head into the holiday season. That level of intentionality is really encouraging to see.
“What’s particularly striking is the sense of pride behind these decisions. Eighty percent of Canadians feel a genuine sense of pride when they shop at small businesses. So, regardless of broader trade and economic trends, the motivation we are seeing here is really about Canadians wanting to support their neighbours and keep their local economy strong. That fundamentally aligns with Xero’s ethos of how we support our small businesses as well.
Mohamed said the data represents a really positive signal for the small business economy because it shows that, despite economic pressures, Canadians are making intentional choices to support local businesses during one of the most critical sales periods of the year.
“The holiday season can, in many cases, make or break a small business’s annual performance, so this commitment from consumers comes at exactly the right time,” she said.
“What makes this particularly meaningful is that Canadians aren’t just planning to shop small, they’re willing to pay more to do it. Seventy percent of Canadians told us they’re willing to pay more for a product or service if it means supporting a small business. That signals a fundamental emphasis on values. It tells us that Canadians understand their spending power has a direct impact, and they realize that for a small business owner, every single sale counts toward their bottom line.
“We’re also seeing this trend hold strong across demographics. Boomers and women are leading the charge – 69% of Boomers and 70% of women plan to shop small – but even younger Canadians, who are often thought to prioritize convenience, are showing a shift. Nearly two-thirds of 18-34-year-olds plan to support small businesses this year. That broad-based support is exactly what Canada’s small business economy needs right now.”
Mohamed said the data highlights that we have a real opportunity to boost the economy heading into the end of the year and into 2026.
“While Canada’s small business economy has faced significant challenges, from lingering inflation and low consumer spending to the impacts of supply chain disruptions, this consumer commitment to shop local could be a turning point,” she said.
“For Canada’s small businesses, every sale counts, and even a small shift in consumer buying habits can have a powerful impact on a small business’s bottom line. Based on Xero data from earlier this year, if Canadians switched just 10% more of our spending towards small businesses, this could mean as much as an extra $88 billion a year flowing into Canada’s small business economy. That’s not just about individual businesses surviving; it’s about strengthening the entire ecosystem that small businesses create in our communities.
“When you combine this consumer sentiment with other positive developments like recent interest rate cuts and progress on open banking, there’s good reason for cautious optimism. The holiday season is critical, and if this intention to shop small translates into real spending, it could provide the boost many small businesses need to close out the year on a stronger note and build momentum heading into 2026.”
Mohamed said individual consumer purchases are absolutely fundamental to the health of Canada’s small business economy.
“Small businesses are the cornerstones of the Canadian economy, and they rely on their communities in a way that larger retailers simply don’t. When you shop at a small business, more of that money stays in your local economy; it gets reinvested in the community, it supports local jobs, and it helps create the vibrant, diverse commercial landscapes that make our neighbourhoods unique,” she added.
“The holiday season amplifies this impact dramatically. For many small businesses, holiday sales can represent 20-30% or more of their annual revenue. That makes the difference between a business that thrives and one that struggles. It’s the difference between being able to hire seasonal help, invest in inventory for the new year, or even just keep the lights on through the slower months.
“What our data shows is that Canadians fundamentally understand this connection. When 69% of Canadians say shopping small is more important this year than ever before, they’re recognizing their role in supporting their local economy, and when they’re willing to pay a premium to do so, that’s a really powerful signal of intentionality.
“My advice to Canadians is simple: embrace that sense of pride in supporting local, and remember that those small purchases truly add up and make a massive difference. It doesn’t have to be all or nothing; even shifting a portion of your holiday spending to small businesses can have a meaningful impact. For small business owners, maintaining clear visibility into your cash flow and consistent financial insights is essential during this period, enabling your business to deliver more timely promotions and informed strategic decisions. Now is the time to make sure you’re in control, engaged with your community, and ready to deliver the kind of personalized service and unique offerings that remind customers why shopping local matters.”
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