Unlike last year, consumers are likely to spend more this year as the pandemic has eased and people are returning to pre-pandemic holiday traditions, including parties and gift-giving.
After a survey of 2,500 consumers, RCC expects Canadians to spend an average of $792 on holidays this year, compared with $693 last year. Based on past experience, consumers actually spent much more than they planned, so actual spending could exceed $800 this year, the committee said.
Canadians will spend the majority of their budget on clothing this year, followed by food, toys and personal electronics, up from last year’s largest share.
In fact, clothing overtook food to become the most expensive category in a recent survey of American teenagers’ consumption. In 2020, the pandemic hit the global garment industry hard. This year, though, the industry seems to be picking up. That’s because most consumers will need to buy new clothes this year, driven by worn out old clothes, changing sizes and going out more often, research firm NPD said. Beyond that, Canadians say holiday discounts and free shipping are important factors in their thinking about buying.
Although Canada is not as big as the European and American markets, it is also a big economic country and has a high acceptance of cross-border shopping. Many Chinese products are very popular in Canada.
