Pandemic Decreases Planned Holiday Spending
Canadians will spend an average of $1,104 for the 2020 holiday season, a net decrease from $1,593 (or 30.7 per cent) in 2019, says the ‘PwC Canada's Holiday Outlook’ report. A whopping 86 per cent of Canadian consumers expect to spend the same or less this holiday season, with deep cuts in travel spending. When asked how the pandemic will affect their personal spending capabilities for the holiday season, 57 per cent of respondents say it's had a negative or slightly negative impact. Also, 85 per cent of consumers plan to use their credit card at some point during the holiday season. Among those, 79 per cent of them aren't worried about debt. Similar to last year, the biggest proportion of holiday spending among respondents as a whole will be on family members. But people will be spending a lot less on themselves (-49 per cent). Another major trend accelerated by the pandemic is curbside pick-up, with 33 per cent of shoppers choosing this method for their online purchases, compared to 13 per cent last year. When it comes to in-store shopping trends, the report shows a big generational divide: 60 per cent of those planning to do at least three-quarters of their holiday shopping in stores are aged 55-plus. When it comes to what influences consumer purchases, younger generations are much more likely to be influenced by online and social media advertising.