Average spend rises modestly while shoppers stretch budgets and hunt deals this season
Canada is set to spend about $20.3 billion on gifts this holiday season, roughly $708 per adult shopper, a small increase from last year.
But behind that seemingly stable overall total lies a shift in how people are approaching their holiday spending according to a new report from NerdWallet Canada. Inflation, tariffs and ongoing debt burdens appear to be pushing many Canadians toward a tighter budget and more creative gift-buying strategies.
More than one in three shoppers say they plan to wait for sale pricing while another 35% expect to spend less per recipient than in past years, and 32% plan to shop for fewer people overall. Roughly the same share say that tariff pressures will affect where or how they buy gifts this year.
Meanwhile, nearly 30% of Canadians intend to prioritize purchases from local or small businesses, which is the highest level recorded in three years.
READ MORE: Economist explains what to watch for in holiday spending data
But there is a wide gap in spending plans with about 26% of respondents anticipating spending $1,000 or more this season, helping to push up the average spend, while nearly half expect to spend under $500, and 15% are budgeting $100 or less.
Among last year’s holiday shoppers who used credit cards, 28% are still carrying balances, rising to 37% in the youngest age bracket. That generation is also far more likely than older buyers to rely on credit card rewards, cashback apps, side hustles, or buy-now-pay-later plans to fund their gift purchases.
