Canadians intend on cutting back on how much they spend for the upcoming holiday season, according to Deloitte Canada’s 2022 Retail Holiday Outlook. .“In 2021, consumers were looking for a reason to celebrate as pandemic concerns started to abate,” said Deloitte Canada national retail leader Marty Weintraub in a press release. .“However, this holiday season consumers are dealing with worries from every angle, be it economic headwinds, rising interest rates, inflationary pressures, the ‘COVID hangover,’ new and reoccurring diseases, geopolitical uncertainty, and more.”.The survey said average household spending will fall 17% this year to $1,520. .The survey went on to say the largest spending cuts will be seen in non-gift electronics (-55%), travel (-30%), and non-gift clothing (-27%). It added one-in-three Canadians plan on shopping earlier this year, with 46% believing it will help them obtain better deals. .Of the people who plan to reduce their holiday shopping, they are cutting back because of high food prices (76%), inflation worries (67%), and economic concerns (60%). Two-fifths of Canadians said they would limit buying to what their family needs. .The survey said almost half of Canadians expected the economy to worsen next year. It said four-in-10 people have seen their household finances worsen this year. .Three-quarters of respondents expect prices to be higher this year. Supply chain challenges pushed consumers to find substitutes, with 61% of people indicating they would try new brands if what they want is out of stock..Weintraub said the ordeal “represents an opportunity for retailers to engage with consumers with utmost transparency and consideration.” He said consumers might be unaware of how retailers are working to offset increased costs. .“Across income brackets, consumers have seen their buying power shrink and they’ll be looking for ways to stretch their dollar,” said Weintraub. .Inflation in Canada rose 7% on a year-over-year basis in August, down from a 7.6% gain in July, according to data from Statistics Canada released on Sept. 20. .READ MORE: Inflation in Canada down to 7% in August.Travel accommodation prices rose by 33% on a year-over-year basis in August, a slower rate compared with July. The slowdown stemmed from the steep monthly price increase last August, the first August since the beginning of the COVID-19 pandemic with fewer restrictions. .Grocery store item prices increased in August by 10.8%, rising at the fastest pace since 1981. The supply of food continued to be affected by factors such as extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain problems. .The survey did not specify method, sample size, or dates conducted. No margin of error was assigned.
