Rakuten survey finds inflation will impact, but not reduce, Canadians' holiday spending
Canadians are finding creative gifting solutions to address financial concerns this holiday season
TORONTO, Sept. 27, 2022 /CNW/ - The vast majority of Canadians are being especially mindful about their holiday gift spending this year to offset rising prices and inflation, according to a new survey by Rakuten.ca in partnership with Ignite Labs. The survey, whose results are being released today, found 82 per cent of Canadians cite at least one economic factor impacting their holiday spending in 2022. Inflation ranked highest, at 61 per cent, followed by rising grocery prices (53 per cent) and rising gas prices (32 per cent). On average, Canadians expect to spend $600 on gifts this year. That's higher than in 2020, during the pandemic, when the anticipated spend was $466.
"To navigate financial strains like inflation, Canadians are becoming more mindful when shopping - especially during the holiday season," says Claire Sweeney, VP of Marketing at Rakuten.ca. "We're also seeing retailers adapt to changing pressures and expect retailers to be more strategic with discounting. As shoppers become more intentional with purchases, it's not surprising to see that Canadian's are leaning into sales and loyalty programs."
Faced with economic challenges that impact holiday spending, Canadians are turning to smart-shopping strategies, such as sales and loyalty programs, to get the most out of their money.
More than three-quarters (78%) of Canadians say they will try to shop for gifts during sales in order to save money. Almost two-thirds (61%) plan to shop on Black Friday – up significantly from 2020 (50 per cent).
Some shoppers are getting a head start on holiday shopping this year, with a quarter of keen Canadians (27 per cent) saying they have already started. However, timing does tend to get away from us this time of year, with most Canadians (75 per cent) wrapping up their holiday purchases in December, just in the nick of time, and almost a third (30 per cent) of holiday gifts are described as last-minute purchases.
Canadians are increasingly turning to the circular economy for holiday gift-giving, indicating a shift towards more intentional spending. Nearly half (44 per cent) say they expect to give at least one homemade gift in 2022, while more than a third (38 per cent) expect to purchase a gift second-hand, including from thrift shops, online resellers and antique shops with nearly one-third (32 per cent) saying they will "re-gift" at least one item this year. Those aged 18-24 are the most likely to re-gift (61 per cent) compared to those aged 45+ (22 per cent).
There's been a significant increase in how Canadians are leveraging loyalty programs like Rakuten with 62 per cent of shoppers now making a point of using programs that offer Cash Back compared to 49 per cent in 2019. When given the choice between loyalty programs that offer points for holiday shopping or Cash Back, Canadians overwhelmingly (63 per cent) prefer Cash Back. Using loyalty programs for holiday shopping is especially popular with those under 45 (68 per cent plan to use, compared to 57 per cent of those 45 or older).
Gift cards are useful gift options to stay on budget and many Canadians are looking to do just that with the majority (57 per cent) of Canadians likely to purchase gift cards for this year. This number is significantly higher in Vancouver at 70 per cent and Atlantic Canada at 68 per cent compared to Greater Toronto at 57 per cent followed by Greater Montreal at 47 per cent.
The Rakuten Canada survey was conducted online by Ignite Lab, a Toronto-based survey consultancy specializing in retail, travel and technology segments, in September 2022 with a nationally representative sample of 1,000 Canadians. A sample of this size is accurate to within +/-3 percentage points, 19 times out of 20. References to previous Holiday research are from surveys conducted in 2020 (approx. 6-months into Covid) &/or 2018-2019 (pre-Covid).
About Rakuten.ca. Now celebrating its 10th anniversary in Canada, Rakuten is a leading shopping rewards program that offers Cash Back, deals and rewards from all your favorite brands. By partnering with over 750 brands in apparel, health and beauty, travel, on-demand services, subscription boxes and more, Rakuten helps Canadians get more from the things they buy. Since launching in 2012, Rakuten has become the largest and most rewarding shopping experience, and its 6.5 million members have earned $140 million in Cash Back just for shopping through Rakuten. For more information, visit Rakuten.ca.
SOURCE Rakuten.ca
Lynn Scherloski, [email protected], Direct: (416) 969-2657
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