PwC survey bodes well for Canada’s retail sector
Canadian retailers should see improved holiday spending from consumers this year according to PwC Canada.
Its Holiday Outlook report has discovered that eight out of ten Canadians plan to spend the same or more during the holiday season than they did last year with family the largest beneficiaries.
The average Canadian will spend $869 on family, $537 on themselves, and $118 on friends. There will also be $40 worth of gifts for pets and $29 spent on ‘others.’
The expected 1.9% increase in holiday spending year-over-year is driven by men who are expecting to spend $1,820 this year on gifts, travel, and entertainment, while women are expected to spend $1,384 on the same things.
"Retailers can expect a busy holiday season as Canadians continue to feel positive about the state of their personal finances," says Myles Gooding, National Retail Leader, PwC Canada. "Canadians across the country and in different age groups will take advantage of deals offered in-store and online, creating a unique holiday shopping experience."
However, there will be a continuing battle between bricks and mortar retailers and online options with Canadians planning to spend 41% of their holiday shopping time online, up 4% from last year, while the bulk is still done in-store (59%).
Personal finances
The report shows that confidence in spending has improved as trade concerns ease and consumers feel happier with their personal finances.
A quarter of respondents said they are feeling better than last year about the state of their personal finances and while recent announcements show household debt-to-income ratio rising, more than 80% plan to use their credit card at some point during the holiday season.
Only 17% (vs 19% in 2018) are concerned about credit card debt and 21% are not worried about it.
