Nov 13, 2023
Value for money top of mind for consumers this holiday
As they face ongoing financial pressures, Canadians will reduce their holiday spending this year, says Deloitte Canada's ‘2023 Holiday Retail Outlook.’ The outlook shows four in 10 (41 percent) Canadians’ household finances have worsened this year, with nearly half (47 percent) expecting the economy to weaken in the next year. As a result, they will be cautious, savvy, and selective this holiday season, looking to shop around widely to find the best deals and get the most value for their money.
"Canadians are looking for value and are willing to shop around to find it – be it online or in-store," says Marty Weintraub, partner, national retail leader at Deloitte Canada. "This shift in behaviour gives retailers no choice but to rethink their value proposition and focus on providing a differentiated, seamless shopping experience that resonates with today's consumers irrespective of channel. Every touchpoint along the customer journey is an opportunity for retailers to deliver value – whether it's competitive pricing, product availability, fast checkouts, free delivery, easy returns, or personalized promotions."
The survey says Canadians are willing to go the extra mile – literally – to get the most value for their money. They will visit an average of 16.5 stores and websites this season, up 37 per cent from last year. Consumers plan to shop for gifts at Amazon (69 percent), mass merchant retailers (61 percent), and warehouse membership clubs (40 percent). Additionally, this year's season shows signs of stagnation in e-commerce growth as consumers plan to spend 41 per cent of their holiday budget online (versus 55 percent in stores), plateauing since 2021.
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