Most Canadians plan to reduce spending during this holiday season

The recent poll by Accenture shows that many Canadians plan to reduce spending on non-essential items in order to save for the holiday season.

According to the report, respondents are cutting their spending on non-essentials (69%), traveling (63%) and decorative lights to reduce their utility bills (61%).

In addition to it, most Canadians are planning to give fewer gifts this year: 67% cut the number of presents to family and friends, and 57% decided not to give any at all.

“As we are heading into the holiday season, consumers have tightened their budgets and are adjusting their everyday spending while searching for new sources of income,” – noted Robin Sahota from Accenture.

In attempt to earn more for the holidays, many Canadians plan to take on more work. The poll shows that 41% of them are taking a side hustle while 39% plan to raise the number of their work hours.

Canadians are expected to spend on average $643 on holiday this year, which is slightly more than $635 reported a year ago, but still less than $721 seen in 2019.

It turns out the Generation Z (26%) and millennials aged 25 to 31 (29%) will most likely spend more on Christmas gifts this time. Meanwhile, baby boomers and Canadians over the age of 70 are the least likely (8%) to do the same.

According to the survey, pricing is the main factor affecting shopping this year (81%). Then follows product quality (69%) and discounts (53%).

Another interesting finding is that Canadians still prefer doing holiday shopping in off-line stores: 57% of respondents plan to shop in-stores instead of going online.

“Good in-store experience for them means excellent service, the human touch, and in-store incentives,” – added Sahota.

“Canadians are more strategic this holiday season, that’s why retailers offering promotions combined with convenient shopping, will be rewarded by their consumers.”