Canadian shoppers hunt for deals but stay cautious this holiday season

Canadian shoppers are moving through the holiday sales season with more caution this year, even as Black Friday and Cyber Monday continue to draw heavy interest. Bargains remain appealing, but the way people buy — and what they prioritize — is shifting noticeably.

According to Jeff Doucette of Field Agent Canada, the appetite for deals is still strong. He said roughly 90 per cent of Canadians planned to shop at some point between Black Friday and Cyber Monday. But instead of splurging on luxury items, many are taking advantage of the sales to stock up on everyday household necessities such as cleaning supplies and laundry detergent. Doucette noted that people are carefully watching their budgets, adding that rising prices have not been matched by higher salaries.

This tightening of household finances is reflected in holiday spending plans. On average, Canadians expect to spend less than $500 on gifts this year — a marked pullback from earlier years when shoppers were more comfortable buying big-ticket items. Doucette said the financial strain has encouraged people to be more intentional and strategic with their choices.

Retailers are also feeling the impact. Calgary wine shop owner Nathalie Gosselin said stores are working harder to convert interest into sales. She explained that many retailers have increased their in-store events, tastings, and customer experiences to attract buyers, but the payoff remains modest. Despite the extra effort, she described growth as slow and hard-earned.

Economically, the country is showing mixed signals. Canada’s GDP rose by 0.6 per cent in the third quarter, offering some positive news. However, unemployment remains elevated at 7.8 per cent, putting pressure on many households and influencing how people approach holiday shopping.

This strain is reshaping gift-giving traditions. Some shoppers, like Calgary resident Carla Little, said they once bought expensive, lavish gifts but now prioritize practical and meaningful items. The shift toward personal touches is also gaining momentum. Another shopper, Rod Zillman, shared that he has been making handmade Christmas cards to add sentiment and reduce costs. Others echoed similar preferences, saying that homemade crafts and creative gifts feel more thoughtful and budget-friendly.

Support for local businesses is also strong this holiday season. Gosselin said many customers are deliberately choosing to shop at independent stores, hoping to keep small retailers thriving at a time when competition and economic pressures are high.

New insights from the Boston Consulting Group highlight broader financial concerns across the country. Nearly half of Canadians feel less financially secure than they did a year ago. Even more worrying, one in three households say they would struggle to pay their monthly expenses if their income suddenly stopped.

Kathleen Polsonello, head of BCG Canada, said that shoppers are placing greater emphasis on essential purchases and Canadian-made goods. She also noted a growing reliance on technology when making buying decisions. About 40 per cent of Canadians have used — or plan to use — digital tools to compare prices and product specifications before purchasing. Among younger shoppers, including Gen Z and Millennials, that number climbs to around 50 per cent.

Overall, this year’s holiday shopping season is marked not by extravagant spending, but by careful choices, thoughtful gifts, and a stronger effort to support local businesses — all shaped by the financial realities many Canadians are facing.