Canadians Will Spend More This Holiday Season
December 10, 2021
Holiday spending will increase this holiday season, writes Peter Watson.
Holiday spending is forecasted to rise sharply from last year. After the pandemic lockdown, Canadians want to shop, celebrate, and spoil friends and family.
This insight is according to Deloitte Canada’s 2021 Holiday Retail Outlook.
Holiday spending during 2021 is expected to increase 31 per cent, an increase of eight per cent since 2019.
Shoppers concerns included potential supply chain disruptions, shipping delays and product shortages.
The plan this year was to shop early.
A little over half of Canadians want to support small businesses in their community. That is their preference, but the reality is Amazon will be their retailer of choice.
Most of us have experienced the changing preference of shopping. The advantages of online shopping is a significant shift, and it is not surprising that Amazon was the leading consumer choice for holiday shopping.
The Deloitte US study painted a different picture. Americans will only increase their holiday spending by five per cent.
Those less fortunate will have to curtail their spending this holiday season. This will apply to some Canadians.
Almost 12 per cent of consumers in the US do not plan to spend during this holiday season. That is more than double those that indicated they would not be spending in last year’s survey.
Most of those not planning to spend this year have lower incomes. The main concern was higher food costs.
While it might be interesting to compare spending patterns with our southern neighbours, it is more meaningful to compare spending habits between Canadians depending on their financial resources,
Canadians have varying financial ability and spending reflects that.
On a positive note, Canadians expect to donate significantly more this year than they did in 2019.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com