[ad_1] Have you started your holiday shopping yet? Plenty of Canadians are hitting “Add to cart” extra-early, whether they’re buying for Christmas, Kwanzaa or Hanukkah. Last year, supply-chain issues frustrated shoppers. The shipping delays have improved somewhat this year, but now inflation and tighter household budgets are spurring many of us to buy ASAP, in case prices rise even more. Retailers got an early start, too—eager to unload overstocked inventories ahead of a possible recession; several stores began offering huge discounts as early as October. Canadians are shopping early (and shopping around) If financial pressures are making you rethink your gift list, you’re in good company. Many Canadians are approaching holiday shopping this year with “cautious optimism and concern,” according to Deloitte Canada’s 2022 Holiday Retail Outlook, an annual forecast for retailers. “What’s different this year, than any other year, is the messiness we have around us—geopolitical concerns, economic headwinds, the threat of recession, supply chain problems, and on and on,” says Marty Weintraub, national retail leader at Deloitte Canada. “This is the first time it’s all happened at the same time. If anything, the mood might be even darker than it was [when we did the survey].” Highlights from Deloitte’s survey of 1,000 Canadians, conducted in early September, include: 76% expect prices to be higher than last year. 37% are shopping earlier this year. Many of us (60%) plan to look for sales, buy from retailers with the lowest possible prices (70%) or switch brands if our first pick is too expensive (72%). Canadians plan to spend an average of $1,520 over the holiday season, down 17% from last year’s figure, $1,841. 76% of those who plan to spend less are cutting back because of higher food prices (76%), inflation worries (67%) and economic concerns (60%). Have you budgeted for holiday shopping? — MoneySense (@MoneySense) November 10, 2022 We’re buying less, but the gifts are more meaningful To keep holiday spending in check, most Canadians are buying less, crossing names off their gift lists, and focusing on more meaningful purchases. Many of us are cutting back, but it’s not impacting the giving spirit, says Deloitte’s report. “The biggest reductions are going to come from three categories that may surprise you,” says Weintraub. “One is non-gift electronics, 55% lower than last year. The second one is travel, down 30%, and the last is non-gift apparel, down 27%. Those are big, double-digit decreases, but you’ll notice none of those categories are gift-giving, which we define as gifts and gift cards—down 10% from last year. The big chunk that gets the 17% decrease overall is that we’re not going to buy stuff for ourselves or travel.” Similarly, in another survey, the Retail Council of Canada found that eight in 10 Canadians plan to buy gifts, but more than half of respondents (62%) will shop for “more meaningful gifts for fewer people.” Meanwhile, research by Interac found that two-thirds of Canadians are practicing “intentional spending,” which it defines as “the action of making purposeful purchasing decisions that live up to their financial goals and personal values.” For many, that includes holding off buying for at least a day, if the item is non-essential. “These are challenging times for many consumers, and there is no easy solution,” says Nader Henin, EVP of commerce at Interac. “Canadians tell us they are managing the current pressures they face by being very intentional in their spending.” Rather than feeling restricted by “intentional spending,” eight out of 10 survey respondents felt more positive associations, like a sense of control, discipline, empowerment and/or thoughtfulness. “Intentional spending doesn’t rule out the ability to indulge on what’s most important to you, but it does mean Canadians are weighing the value of each purchase before they make it,” says Henin. “Many customers are also making highly considered purchases which align with what they care about most deeply, and 62% say they want tools which encourage intentional spending.” (To that end, Interac has released a calming music track to listen to while shopping.) Photo by Karolina Grabowska from Pexels Lingering debt is a holiday hangover nobody wants It’s perhaps unsurprising that debit card usage has been trending upwards as we head into the busiest shopping time of the year. (Here’s how much debt Canadians have leading into the holidays.) Interac’s research found that four in 10 Canadians are hesitating to charge their purchases to credit cards. Using a debit card can help people maintain control of their spending, says Henin. “They are focused on sticking with a budget, and are spending the money in their bank account—the money they own.” And if you do use a credit card, ensure that your card’s points or cash back program rewards you for your holiday spending. Check the fees, too. You might be paying for perks you don’t really need or use. Compare the best credit cards for online shopping READ NOW What’s the busiest shopping day of the year? If you’re shopping in person but can’t stand crowds, you may want to wait for Sunday. And Monday isn’t as “dead” at the mall as you might think. Here’s how the days of the week rank for busyness, in descending order, courtesy of payment processor Moneris: Friday Thursday Monday to Wednesday Saturday Sunday On Black Friday (Nov. 25), you might want to stick to online shopping. According to Moneris, it’s the busiest day of all in terms of total transactions and dollars spent. How to get the holiday gifts you want, on time Supply-chain problems have eased, but it may still be hard to find everything on your list. In addition to shopping early this season, try these 10 strategies to get your hands on great gifts without overspending: Compare prices. To find better deals, use comparison-shopping sites and apps, such as ShopToIt, Flipp, PriceFinder and Shopbot. If you’re set on a specific item at a particular retailer, though, don’t wait too long for prices to drop. Black Friday and Boxing Day are typically when
