Inflation Affecting Three-Quarters (74%) of Canadians' Holiday Spending: Givex Survey
Annual Givex 2023 Holiday Gift Card Survey reveals that Canadians are adapting their gift-giving habits as inflation concerns rise
TORONTO, Nov. 14, 2023 /CNW/ - Today, Givex (TSX: GIVX) (OTCQX: GIVXF), the cloud-based global customer engagement and business insights platform, released new data that explores Canadian spending habits and attitudes toward gift cards ahead of the 2023 holiday season.
Based on the findings from the 2023 Holiday Gift Card Survey, it is evident that inflation is exerting a growing influence on Canadians' holiday spending this year, with three-quarters (74%) of Canadians reporting that inflation will impact their gift-giving plans, an increase of nearly 9% from last year. This sentiment is felt among Canadians across all provinces, sexes, and household income (HHI) levels, with each reporting a year-over-year increase.
The Givex survey also reveals that despite inflation, Canadians are still spending, though not as much as last year. One in five Canadians (20%) plan on spending at least $200 on gift cards this holiday season (down from 27% in 2022), with over half (53%) of Canadians expected to spend at least $100 or more on gift cards this holiday season.
"The impact of inflation has been felt by Canadians this year, with increasing costs of living across the board," explained Mo Chaar, Chief Commercial Officer of Givex. "Our Holiday Gift Card Survey data reveals the effects of rising prices on consumer spending, and provides valuable insights into shoppers' preferences for gift cards. As we gear up for one of the busiest times of the year for retailers and hospitality establishments, and with customers expected to spend less than in previous years, it's more important than ever for businesses to maintain customer loyalty. Givex equips brands to make better-informed business decisions, strengthen their relationships with customers and, ultimately, increase sales."
Key findings from the survey include:
- When asked if inflation has impacted gift-giving plans this holiday season, 74% of Canadians agreed (up from 68% in 2022).
- Notably, this proportion doesn't vary much with income. 78% of those with HHI below $50,000 agree, as do 73% of those with an income of $100,000 or more (up nearly 20% from 61% in 2022).
- One in five (20%) Canadians plan on spending $200 or more on gift cards this holiday season (down from 27% in 2022), with over half (53%) of Canadians expected to spend at least $100 or more on gift cards this holiday season (down from 61% in 2022).
- 43% of Canadians say they would most like to receive a gift card for necessities (such as groceries and gas) this year, up slightly from 41% in 2022.
- Only 37% of men say they would most like a gift card for necessities, compared to almost half (48%) of women.
- More than half (52%) of younger people (aged 18-34) say they would most like to receive a gift card for necessities as a gift, compared to just over a third (35%) of those who are aged 55 and up.
- 42% of Canadians with an annual HHI of over $100,000 say they'd like to receive a gift card for necessities as a gift, up from 35% in 2022. Meanwhile, almost half (48%) of those with HHI of less than $50,000 say they'd most like to receive a gift card for necessities as a gift.
- Nearly all Canadians like receiving gift cards: only 6% say they don't like getting them as a gift. Credit card gift cards are the most popular option, with a majority (55%) picking them as one of their favourite types to get, up from 50% in 2022.
- Almost four-in-five Canadians (78%) agree that buying a gift card is less stressful than finding a physical gift.
As the cost of living rises, some Canadians are adjusting their holiday gift-giving plans accordingly. There is a growing demand for digital shopping experiences, and leading this digital transformation, Givex recently launched customizable and animated e-gift cards that enable shoppers to add a personal touch to their digital gift cards with heartfelt video messages or images.
The findings from this survey shed light on consumer spending behaviours and empower businesses to make strategic choices that can influence their profits. For more information about Givex, visit givex.com.
These are the findings of a survey conducted by Givex from October 27 to November 1, 2023, among a representative sample of 1,509 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.5 percentage points, 19 times out of 20.
The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 128,000+ active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex's integrated end-to-end management solution provides Gift Cards, GivexPOS, Loyalty Programs and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, tackle complex challenges and transform data into actionable insights at www.givex.com.
SOURCE Givex
Media Contact: Lauren Moorman, [email protected]
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