Shoppers focus on practical gifts and strict spending limits amid rising costs and economic caution
Canadians are heading into the holiday season with tighter budgets and a sharp focus on value, as economic pressures and rising living costs reshape traditional spending habits, according to the Harris & Partners 2025 Christmas Spending Report.
The survey reveals that 71.5 percent of Canadians plan to cut back on Christmas spending this year, while 85 percent intend to set strict budgets, and more than half report feeling anxious about affording the holidays.
Joshua Harris, CEO of Harris & Partners, notes that “many families are still working through the effects of high living costs, and for a large number of people, there is simply less financial flexibility available.”
Retailers are responding to this cautious consumer sentiment by launching aggressive discounts earlier than usual.
As reported by BNN Bloomberg, Canadian Tire began its Black Friday deals on November 6, while Amazon Canada is set to kick off its promotions on November 20, with a special emphasis on Canadian products and small businesses to help avoid tariffs.
Retail analyst Bruce Winder observes that “retailers are fairly aggressive this year on price,” reflecting both economic uncertainty and a desire to capture early spending.
Practicality is driving gift choices, particularly among low and mid-income Canadians.
Winder points out that consumers are gravitating toward essential items, maintaining steady holiday budgets at $975 per person, and prioritizing needs over experiences.
“If your toaster breaks, they’re going to get you a toaster for Christmas,” he says.
The emotional toll of financial strain is also rising, with more than half of survey respondents expressing anxiety about holiday costs.
Harris emphasizes that “the emotional impact of financial strain is real, and this time of year can intensify it.”
He encourages Canadians to set realistic budgets, plan early, and seek financial guidance if needed.
Meanwhile, advertising strategies are shifting as well.
The Canada Post strike has disrupted flyer delivery, forcing retailers like Canadian Tire to rethink how they reach consumers.
Winder notes that while digital engagement is growing, traditional flyers and catalogues—such as the Amazon Toy Book—still offer strong engagement for certain categories.
As the holiday season unfolds, both retailers and consumers are adapting to a new landscape shaped by caution, practicality, and a heightened awareness of financial limits.
