Consumers tightening belts for the holidays

With eight in 10 Canadian consumers being more careful about how they spend their money this holiday season, retailers need to double-down and lean into loyalty programs, offer deeper discounts, and improve customer experience if they hope to entice shoppers to loosen their purse strings, says a consumer poll by KPMG in Canada.

The survey shows 83 per cent are more cautious about what they are spending money on this year compared to last year, given high inflation, interest rates, and mortgage costs. What's more, 62 per cent are frustrated by their online shopping experience with over two-thirds wanting to see retailers think outside the box to replicate online that in-store shopping experience.

The survey findings show Canadians are frustrated with both their in-store and online shopping experiences. As a result, loyalty programs are proving increasingly important when it comes to where Canadians choose to shop. Nearly eight in 10 (78 per cent) Canadians are opting to shop at retailers that offer loyalty rewards programs, with over half (55 per cent) saying that they are worth giving up their personal information. In fact, 70 per cent are not worried about their information being compromised when signing up for rewards programs. Although the vast majority, 93 per cent, think retailers should be more transparent in how they protect and store personal data.