Canadians plan to spend an average of $911 on holiday shopping this year, down 6.5 per cent from 2025, as inflation, higher prices and economic uncertainty influence household budgets, according to a new survey by the Retail Council of Canada (RCC) and Leger.
The ninth annual RCC x Leger Holiday Shopping Survey found that 52 per cent of Canadians expect to spend about the same amount as last year, while 22 per cent plan to spend more and another 22 per cent expect to spend less. Despite more measured spending plans, 82 per cent of respondents said they were confident they could buy everything they planned to purchase.
The findings point to a holiday shopping season in which retailers may face consumers who are increasingly focused on promotions, comparing prices and planning purchases around major sales events, while continuing to prioritize gifts for family and friends.
Shoppers focus on value and major sales events
Inflation and higher prices are the leading factors influencing holiday spending plans, cited by 48 per cent of respondents. More than half, or 56 per cent, said Canadian economic instability or inflation was affecting their holiday outlook, up from 53 per cent last year. The same proportion said those factors were affecting their household finances.
Among respondents affected by economic conditions, 49 per cent said they would spend more time looking for deals, 39 per cent planned to start shopping earlier, 39 per cent intended to establish a budget and 36 per cent expected to rely on loyalty programs.
The survey found that 64 per cent of Canadians planned to look for more deals than in previous years, compared with 63 per cent in 2025. Meanwhile, 43 per cent said they put off purchases throughout the year to take advantage of major sale days, up from 39 per cent last year.
Black Friday remains a central part of holiday shopping plans. The survey found that 88 per cent of respondents ranked the Nov. 27 event among their top three shopping days, up from 84 per cent in 2025, while 52 per cent ranked it as their top shopping day.
Cyber Monday also gained ground, with 72 per cent ranking it among their preferred shopping days, compared with 64 per cent last year. Respondents expected Black Friday and the Cyber Monday and Cyber Week period to each account for about 29 per cent of their holiday budgets.
Most Canadians also planned to continue shopping at their usual retailers at least as much as they did during the previous holiday season. Grocery stores were favoured by 78 per cent of respondents, followed by big-box retailers at 75 per cent and discount stores at 69 per cent.
Gifts for others take priority
Canadians are allocating a larger share of their holiday budgets to gifts for other people, even as planned overall spending declines. Gifts for others account for 86 per cent of expected holiday expenditures, up from 79 per cent in 2025, while purchases for themselves have fallen to 14 per cent from 21 per cent.
Immediate family members are expected to receive the largest share of spending, accounting for 64 per cent of planned holiday budgets.
The survey also found that 53 per cent of respondents considered giving a memorable or meaningful gift the most important factor when making a selection. By comparison, 23 per cent prioritized finding the lowest price, down from 25 per cent last year.
Clothing accounts for the largest share of planned gift spending at 19 per cent, up from 17 per cent in 2025. Gift cards remain steady at 16 per cent, while travel accounts for 8 per cent, up from 7 per cent.
Kim Furlong, President and CEO of the Retail Council of Canada, said shoppers were balancing their holiday plans with attention to value and personal relationships.
“Canadians are looking forward to the holidays, and they’re planning with purpose,” said Furlong. “They’re putting the people they love first, starting early and shopping smart for value. Retailers across the country are ready for them, with great deals, strong selection and more Canadian-made products that are easy to find.”
Online shopping grows, but physical stores remain important
Online purchases are expected to account for 42 per cent of Canadians’ holiday shopping budgets, up from 39 per cent last year. Physical stores will still account for the majority, at 58 per cent.
The survey found that 62 per cent of respondents planned to shop in stores because they wanted to see and touch products before buying them, up from 58 per cent in 2025.
Customer reviews also remain influential in purchasing decisions, with 80 per cent of respondents saying ratings and reviews were important when selecting holiday purchases. That proportion rose to 90 per cent among shoppers aged 18 to 34. Overall ratings were important to 45 per cent of respondents, while 40 per cent placed weight on written comments.
Artificial intelligence is also beginning to play a role in shopping plans, although relatively few consumers said they would rely on it to make gift decisions. About 31 per cent expected to use an AI tool for some part of their holiday shopping, most commonly to compare prices, cited by 21 per cent. Only 3 per cent said they would trust an AI assistant most when choosing a gift, while 47 per cent said they trusted their own judgment.
Interest in Canadian products remains strong
The survey found that 84 per cent of Canadians were more likely to purchase a gift clearly marked “Made in Canada,” unchanged from last year. However, price remains a consideration: 52 per cent of all respondents said they were more likely to buy Canadian-made products if the price was reasonable.
When asked what would make buying Canadian products easier, 58 per cent identified more affordable pricing as the leading factor.
U.S. politics, trade policy and geopolitical instability were also influencing shopping decisions, although their impact had eased from the previous year. Some 52 per cent of respondents said these issues affected their holiday outlook, down from 58 per cent in 2025. Among those affected, 58 per cent said they were avoiding U.S. brands and 57 per cent planned to support more local or Canadian-made businesses.
Regional spending plans vary
Alberta shoppers reported the highest average planned holiday spending at $1,184, down $9 from 2025. British Columbia followed at $993, down $136, while Ontario shoppers planned to spend $952, a decline of $143.
Manitoba and Saskatchewan had an average planned budget of $941, up $51 from last year. Atlantic Canada respondents expected to spend $868, down $44, while Quebec had the lowest planned spending at $664, an increase of $44.
The survey was conducted online by Leger for the Retail Council of Canada from Aug. 21 to Sept. 4, 2026, among a nationally representative sample of 2,500 Canadians aged 18 and older. It was conducted in English and French. The results are based on a non-probability online sample, meaning a margin of error cannot be calculated. Planned spending figures are self-reported and are not adjusted for inflation.
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