One-third of Canadians are expected to reduce their spending this holiday season, according to Deloitte’s annual retail outlook.
Deloitte managing partner Steve Lund says economic concerns, higher food prices, and job loss are major factors for cutting back.
The average Canadian home will spend about $1,400 – a drop of 18 percent over last year.
Lund says consumer confidence may be lower this year but Canadians are feeling more charitable when it comes to worthy causes.
COVID-19 has accelerated the shift to online shopping. Almost half of those surveyed have done it since the pandemic began, and 25 per cent have taken advantage of delivery services.
“The biggest difference relates to a reduction in travel – with COVID is not super surprising. There’s also a bit of a decrease in dining out because of COVID restrictions that exist,” says Lund.
More than half of those surveyed believe Canada’s economy will weaken in 2021 – which is up substantially from a year ago.
