Survey Finds 2 in 5 Canadians are Reducing Holiday Gift Budgets

November 20, 2024 TruthUSA

With Black Friday and Christmas approaching, a new survey says 2 in 5 Canadians plan to cut back on holiday gift spending this year.

Of 1,013 Canadians surveyed, 42 percent say they will spend less this holiday season, while 23 percent plan to spend more, and 28 percent will keep their budget unchanged. The survey was commissioned by marketing platform Omnisend and published on Nov. 20.

These figures make Canadians the “most cautious” shoppers compared to those in other countries, said a release on the survey results. The survey found that 37 percent of Americans and Britons, and 34 percent of Australians, also plan to spend less.

A separate poll published the same day by FedEx Canada said 33 percent of 1,517 Canadians surveyed plan to spend less on holiday-related purchases this year. However, that number is down from the 37 percent who planned to reduce their spending last year.

“While financial constraints are still top of mind, it’s very promising to see an increase in purchase intent leading into the holiday shopping season,” said Ann-Marie McIntosh, Vice President Global Brand at FedEx.

“Our data showed that the majority of Canadians surveyed, 66 percent, aren’t stressed about holiday shopping. They’re using time-tested strategies—like waiting for major sales, conducting research, and taking stock of who’s on their shopping lists—to make the most of their holiday budgets.”

Kids Take a Backseat

While Christmas gift-giving has traditionally been focused on children, Omnisend’s survey says shoppers are now prioritizing their spouses as the top gift recipients this year.

Sixty percent of Canadians are primarily shopping for their spouses, followed by parents at 55 percent and children at 48 percent. Additionally, 24 percent plan to buy gifts for their pets, according to the survey.

Many are also taking advantage of holiday discounts to treat themselves, with 37 percent of respondents admitting to self-gifting during the season. Most (61 percent) buy items they’d purchase anyway to take advantage of sales, while 29 percent reward themselves with spontaneous treats.

Shoppers’ Go-To Platforms

While online shopping is the primary method of choice for holiday shoppers, brick-and-mortar stores still capture a significant share of the market, according to the Omnisend survey.

Sixty-nine percent of shoppers plan to purchase gifts from major online marketplaces, with Amazon (97 percent), Walmart (43 percent), and Etsy (13 percent) leading the way. Meanwhile, Chinese online marketplaces Temu and Shein are used by 19 percent and 15 percent of Canadian shoppers, respectively, Omnisend said.

For in-person shopping, 60 percent of Canadians plan to buy gifts at large retailers, 31 percent at discount stores, 25 percent at small businesses, and 14 percent at specialty or boutique shops.

Despite the popularity of online shopping, 67 percent of shoppers are concerned about package theft, FedEx reported. However, more than half (59 percent) plan to continue shopping online, with many citing the convenience of e-commerce as a key reason.

Shoppers are also taking measures to protect their packages, with 58 percent using delivery tracking tools, such as photo proof of delivery, real-time tracking, mobile apps, and notifications, as their primary method of protection against theft, according to FedEx.

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