In its 2025 Holiday Retail Outlook, Deloitte Canada forecasts a 3% increase in holiday retail spending this year. The report emphasizes a shift towards mindful consumer behavior amid economic uncertainties, with nearly half of Canadians concerned about a worsening economy. Consequently, 78% of consumers plan to seek out the best deals this holiday season.
Key Trends in Holiday Spending
The outlook reveals several significant trends for the upcoming holiday shopping period:
- One in five Canadians intend to start their shopping in October, up from 15% in 2024.
- Almost a quarter of holiday budgets will be allocated to Black Friday.
- 42% of shoppers are expected to begin their holiday purchases online.
- 73% of consumers prefer local or Canadian-owned retailers.
AI Adoption and Shopping Behavior
Artificial intelligence is reshaping consumer experiences. Approximately 50% of Canadians have interacted with AI for personalized recommendations and gift ideas. Retailers are encouraged to harness AI to enhance customer service and remain competitive.
Consumer Concerns and Spending Habits
The survey highlights some critical concerns:
- 70% of Canadians express anxiety about data privacy when shopping.
- 46% believe the economy will decline in the next year, while 80% fear tariffs affecting the economy.
- Inflation remains a top concern, with 70% expecting higher prices.
The Mindful Consumer
While spending on gifts and experiences has increased slightly by 2%, spending in other categories has declined by 8%. This reflects a cautious approach to discretionary spending as family finances show modest improvement.
Shopper Preferences
With 48% of consumers finding holiday shopping stressful, online shopping remains a popular choice. Key findings include:
- 55% of budgets will be spent in-store, with Baby Boomers leading at 60%.
- Gen Z and Millennials are shifting more of their budgets to online purchases compared to Baby Boomers.
- 63% of shoppers are influenced by loyalty programs, and 48% respond to personalized offers.
Cybersecurity and Consumer Trust
As retailers increase their digital presence, concerns around cybersecurity are prominent. 64% of consumers are hesitant to shop with retailers that have experienced data breaches. Trust and loyalty will be essential for retailers aiming to maintain long-term consumer relationships.
The Deloitte Canada survey, conducted from August 27 to September 5, 2025, involved participants from various demographics across Canada, focusing on spending habits and consumer concerns. As holiday shopping approaches, both retailers and consumers are navigating a landscape defined by caution, innovation, and increased value-seeking behavior.
