Accenture’s 19th Annual Holiday Shopping Survey finds Canadian consumers are choosing strategy over spontaneity as they head into the holiday season. According to the Canadian data, more than half of those surveyed (53%) say they’ll actively look for sales and promotions, compare prices and shop around to make the most of their budget. In a sign of the times, more than 60% say they’ll use AI to help them shop.
“Retailers are going to need to think and act more strategically to bring value to consumers this year, especially as many anticipate a decline in disposable income,” said Fawad Baig, Retail Industry Lead, Accenture Canada.
“AI can be a powerful differentiator – not just for comparing products or finding the best deal, but for reimagining the entire customer journey. From personalized product recommendations and AI-powered styling tools to predictive inventory and dynamic pricing that keeps essentials affordable, leading retailers are already using AI to create more intuitive, relevant and efficient experiences that build trust and loyalty.”
The report outlines five key trends shaping how Canadians plan to shop this season and what retailers need to do to meet consumers expectations.
TREND 1: HOLIDAY SHOPPING GETS SMARTER WITH AI
Consumers are turning to AI for help. 61% plan to use generative AI for holiday shopping. Over half (57%) already use gen AI tools, up from 31% in 2024.
What retailers can do:
- Refine AI tools: 42% of Canadians prefer brand-specific AI assistants for tailored advice, while 37% favour platforms like ChatGPT or Copilot. Retailers should optimize AI to offer what customers are looking for, including:
- Product comparisons (59%).
- Help finding purchase locations (54%).
- Gift ideas and inspiration (47%).
- Boost AI visibility: Consumers are most likely to use AI to help shop for electronics (73%), home appliances (63%), and personal care products (56%). Retailers should ensure their brand and messaging are discoverable in AI searches.
“This holiday season, Canadians are embracing AI like never before. With 61% planning to use generative AI for shopping and more than half already doing so, retailers have a clear opportunity to meet consumers where they are. Shoppers want AI tools that make life easier, from comparing products and finding purchase locations to inspiring gift ideas. Retailers that refine their AI experiences and ensure their brand is visible in AI-driven searches will be best positioned to capture demand, especially in categories like electronics, home appliances and personal care,” said Baig.
TREND 2: DISCOUNTS ARE ON THE “NICE” LIST
Shoppers are budget-conscious. 41% expect less disposable income this holiday season than they did last year. Many feel overwhelmed by ads (53%), too many choices (46%), and fear of buyer’s remorse (43%).
What retailers can do:
- Lead with value: 53% of consumers will seek sales and compare prices; 40% will set clear budgets. Retailers should meet this demand with clear promotions and competitive pricing.
- Think beyond big sale days: Only 15% plan to start shopping on Black Friday, and just 2% on Cyber Monday. Most shoppers (67%) plan to start earlier than that. Retailers should offer value throughout the season to capitalize on shoppers’ long lead times.
- Ease the stress: Shoppers say retailers can simplify the experience by being transparent about pricing (53%), making comparisons easier (51%), and improving product discoverability (51%).
“Canadians aren’t waiting for Black Friday or Cyber Monday this holiday season. More than two thirds plan to start their shopping even earlier, so they have enough time to find the best deals and discounts. With many expecting tighter budgets, they’re hunting for sales, setting clear spending limits and putting value first. Retailers need to focus on flexible, season-long deal and discount strategies that can adapt to changing demand and make the most of existing inventory – because Black Friday and Cyber Monday alone are no longer enough for consumers,” added Baig.
TREND 3: RETURNS MATTER—EVEN IF THEY DON’T HAPPEN
Return policies influence purchase decisions. While 61% don’t plan to make returns this year, strict policies can still deter shoppers.
What retailers can do:
- Make returns easy: 61% avoid retailers with strict or no-return policies. 65% say they want to be able to return online stores in-store; 69% want free shipping or access to a prepaid label.
- Reduce return rates: Most returns happen due to poor quality (45%) and bad fit (43%). Retailers can improve accuracy in product descriptions (51%), detail materials and durability (46%), and highlight trustworthy reviews (38%).
“Canadians are steering clear of stores with strict return policies, even though more than half don’t plan on making returns this year. Shoppers want the option to return online orders in-store and they expect free shipping or access to prepaid return labels. With most returns happening because of poor quality or fit, accurate product descriptions, clear details on material durability and trustworthy reviews can make all the difference. Retailers need to be thinking about flexible return policies and clear product information – helping minimize the unknowns of ordering online while simultaneously reducing the number of returns altogether,” noted Baig.
TREND 4: IN-STORE EXPERIENCES ARE BACK
Physical stores are regaining popularity. Just over half (51%) of Canadians plan to shop in person. Top reasons: seeing products firsthand (41%), taking items home immediately (37%), and easier returns and/or exchanges compared to online (33%).
What retailers can do:
- Create memorable experiences: 52% are influenced by exclusive in-store promotions or product drops, and 42% by festive atmospheres. Retailers should offer seasonal environments and limited-time product drops.
- Prioritize convenience and value: Department stores (45%) and mass merchants (44%) are top destinations. Shoppers are drawn by better prices, discounts and promotions (54%), convenient locations (47%), and loyalty rewards (44%).
“Canadians are rediscovering the value of in-store shopping, with just over half planning to visit physical stores this holiday season. The ability to see products firsthand, take items home immediately and enjoy hassle-free returns is driving this resurgence. Retailers that create memorable experiences through festive atmospheres and exclusive product drops will stand out. At the same time, convenience and value remain key, with shoppers gravitating toward department stores and mass merchants for competitive prices, loyalty rewards and easy access,” said Baig.
TREND 5: TRAVEL GIFTING IS PERSONAL AND PRACTICAL
Canadians planning to gift travel want meaningful experiences. Nearly two-thirds (63%) say holiday travel creates stronger memories than physical gifts. But half will stay domestic, and 55% are influenced by geopolitical and global events.
What retailers can do:
- Offer flexible options: Canadians gifting travel tend to do so to their partners (52%), or for their families and themselves (38%). With 68% wanting more out of every dollar spent and 53% open to “book now, pay later,” providers should emphasize affordability and tailored packages.
- Build trust with AI: Gen AI is gaining traction in travel planning—used by 24% via online travel agencies, 20% via airlines, and 19% via hotels. Travel brands should make AI tools accessible, transparent, and helpful across the booking journey.
“Travel gifting is becoming a deeply personal choice for Canadians, with nearly two-thirds saying holiday travel creates stronger memories than physical gifts. While many are staying domestic and mindful of global events, they’re also looking for flexibility and value, whether through tailored packages, affordability or book-now-pay-later options. For travel brands, trust and convenience are critical, and AI is emerging as a powerful tool to simplify planning and booking. Making these experiences accessible and transparent will help retailers deliver the meaningful, practical travel gifts Canadians want this season,” said Baig.
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