Money troubles could force Canadians to cut people from holiday gift lists
The bottom of the tree will look a little bare this holiday season as cost-cutting Canadians say they plan to whittle down their Christmas lists.
Rakuten, the leading shopping rewards program, has just released its Holiday Spending Survey in partnership with Ignite Labs, and the results are certainly in keeping with the times.
Out of the 1,000 who participated in the online survey, 75% said they were looking for sales and offers, while 61% said they plan to use loyalty programs like Rakuten.ca to earn cash back.
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Fifty-six per cent said they’d shop for gifts earlier to “spread out the expenses,” and 35% said they’d skip the gifts and plan activities instead. However, 33% of respondents will have fewer gifts to wrap as they plan to skip all that by simply dropping people, such as friends, coworkers, and neighbours, from their Christmas gift list.
“Offsetting the financial strain of one of the highest shopping periods of the year is often a priority for many Canadians, and we’re seeing increasing numbers of consumers looking at ways they can save, whether it be shopping sales or stacking deals,” said Jennifer LaForge, general manager at Rakuten.ca.
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Seventy-six per cent of participants will be sticking to a budget, and according to the survey, the average holiday shopping budget is set to drop by $30.
“With the average anticipated spend on holiday gifts estimated to be $570, down from $600 in 2022, Canadians are looking to reduce their holiday spending amid rising costs seen throughout the year,” reads the survey.
On the other hand, it will be an expensive season for parents who, on average, say they plan to spend $745 on gifts.
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Here’s how participants plan to cut costs while shopping:
Loyalty programs and cashback — 61% will use their loyalty programs to earn cash back for holiday shopping.
Shopping timing — 63% of participants will shop for the best deals during Black Friday, 50% said they plan to shop during Cyber Monday, while 46% prefer Boxing Day.
Shift in gift-giving tactics — People are rethinking the gifts they’d like for themselves this year. Sixty-three per cent would rather receive practical items, and 53% said they’d love gift cards. Only 28% said they’d love experiences rather than traditional gifts, while 26% would like to receive luxury items.
“We’ve been seeing a lot more conscious consumers, especially those looking for everyday savings to balance the high-spend holiday season with the rest of the year,” said LaForge.
What are your cost-cutting solutions for the holidays?
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