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Holiday Shoppers Forecast to Spend 11% Less Than Last Year
A recent survey by Deloitte predicts that Canadian holiday shoppers will spend an average of $1,347 this year, down 11% from last year. This decrease can be attributed to consumers being more thoughtful with their purchases and holding off on splurging.
Consumer Spending Habits
According to the survey, 48% of Canadians plan to buy only what their family needs during the holiday season. Additionally, 71% will seek items on sale and 29% will look for less expensive retailers to patronize.
Toys ‘R’ Us Canada’s vice-president of merchandising and supply chain, John Muriello, noted that customers are becoming more value-conscious, with many opting for deals and being selective in their purchases. Some shoppers have even finished their holiday shopping as early as September or October, while others wait until the last minute to make impulse buys.
Supply Chain Issues Easing
The toy industry has experienced supply chain issues in the past, but Muriello stated that the scarcity of popular toys is not as prevalent this year. The digital pet Bitzee, made by Spin Master Corp., has a "pretty strong" supply, he said.
In the luxury market, Holt Renfrew’s senior vice-president of product, Carolyn Wright, observed that consumers are being more careful with their purchases due to the economic climate. However, she believes that this will lead to thoughtful and value-driven purchasing decisions.
Retailers’ Strategies
Executives from Spin Master Corp. noted during an early November earnings call that they expect consumers to purchase very late in the season. Costco Wholesale Corp.’s chief financial officer, Richard Galanti, stated that the company plans to bring in new toys just before Christmas, as they are not unique to the holiday season.
Overall, retailers seem to be adjusting their strategies to accommodate the changing consumer behavior and economic climate.
Sources
- Deloitte survey
- Toys ‘R’ Us Canada’s vice-president of merchandising and supply chain, John Muriello
- Spin Master Corp.’s earnings call
- Costco Wholesale Corp.’s earnings call