Will Canadians celebrate Black Friday holiday cheer or financial fear?


Article content

As much as they want that classic holiday experience of giving and receiving gifts, Canadians are taking a more cautious approach to this year’s Black Friday and Cyber Monday shopping days. Unlike last year, when consumers were busting loose their spending habits post-pandemic, this year, things are a bit more sedate, thanks in part to the 40-year high inflation rate, and the looming threat of a recession hanging over everyone’s heads.

Advertisement 2

Article content

The 2022 Holiday Spending Study, conducted by the Chartered Professional Accountants of Canada (CPA Canada), reveals that Canadians have plenty to worry about during “this most wonderful time of the year,” as two-thirds of those surveyed believe inflation will make it harder to buy gifts this upcoming holiday season.

Article content

“Households across the country have been feeling the pinch this year – what started off as rising prices grew worse as Canada’s inflation rate peaked to its highest level in almost four-decades – but that doesn’t mean taking on debt has to be inevitable,” says Doretta Thompson, CPA Canada’s financial literacy leader, in a recent media release. “Even though holiday shopping is underway, it’s never too late to learn how to manage merriment within your means.”

Advertisement 3

Article content

According to the Retail Council of Canada’s 2022 Holiday Shopping survey, Canadians are “anticipating spending more time searching and buying in physical stores, and foresee laying out $790 on holiday purchases – about the same as last  year – despite financial challenges,” notes the survey available on retailcouncil.org. (Other retail organizations put that budget between $400 to $589 this year.)

“Black Friday and Cyber Monday will continue to be the busiest shopping days, both in-store and online with consumers looking for more deals and to get back into the holiday spirit,” notes the RCC.

The survey reveals that, while eight in 10 consumers intend to buy gifts for others this year, “62% say their gift giving habits have changed … with the main reason being that they are looking to buy more meaningful gifts for fewer people.” People will also be looking for more deals, and consider shopping in a wider assortment of retailers for the best prices.

Advertisement 4

Article content

We apologize, but this video has failed to load.

Regardless of the bleak economic outlook, Canadians are gearing up for Black Friday, according to payment provider Moneris Canada, stating Black Friday will once again be the busiest shopping day of the year, and busiest day in terms of total transaction count and dollars spent. The company is predicting spend volume “will be up 9.5% compared to holiday 2021,” according to its recent media release.

Friday is also the busiest day of the week – a trend Moneris says will continue through to the end of 2022, while Cyber Monday is going to give everyone a run for their money.

Many companies have been celebrating Black Friday all month by rolling out sales campaigns well ahead of this Friday and Monday’s traditional holiday shopping dates. Companies such as Amazon and Walmart’s pre-Black Friday deals, for example, were launched a while ago.

Advertisement 5

Article content

Meanwhile, according to finder.com/ca search history analysis, the most popular store for deals continues to be Best Buy, which snagged 28.2% of search volume, followed by Walmart (22.89%), Apple (17.44%) and Amazon (13.52%).

“Canadians are exhausted from ongoing inflation and recession fears,” notes Romana King, senior personal finance editor at Finder, a personal finance comparison site, in a recent media release. “The holiday season offers a respite and a welcome distraction, but it may threaten to blow a hole in the budget.” That said, adds King, “this is a make-or-break time for most retailers, so companies will compete hard for your spending.”

We apologize, but this video has failed to load.

Meanwhile, in its annual survey, the CPA Canada highlights Canadians’ financial worries during what should be the most wonderful time of the year: Two-thirds believe inflation will make it harder to buy gifts, and one-in-five say they are likely to take on debt to pay for holiday gifts. “It’s no wonder that 46% of Canadians report feeling more stressed around the holiday season compared to other times of the year,” notes CPA Canada in a recent release. “More than one-in-five say they are likely to take on debt to pay for holiday gifts.”

Advertisement 6

Article content

Canadians are still sensitive about asking for financial help as well, according to PayPal Canada’s 2022 Holiday Snapshot Survey, which found that seven in 10 Canadians “would be too embarrassed to ask for financial help with splitting the cost of seasonal festivities.”

The PayPal Canada survey found cost-of-living crisis is impacting festive expectations: Nearly three out of five Canadian respondents feel anxious that the holidays won’t be as good this year due to the cost-of-living crisis.

That said, Canadians want to pitch in and help. The survey found that Gen Z, for example, “want to do their part to help their families: Two in five Gen Z respondents say they will offer to chip in for festivities (for) parents and grandparents as they feel the older generations would be too proud of ask for money.”

Advertisement 7

Article content

The survey also revealed “the top reason survey respondents are too embarrassed to ask friends and family to chip in is because they believe others are struggling financially too,” with many Canadians willing to sacrifice their own wish lists for others.

Cost sharing in the digital age

Despite hesitancy over splitting costs, bill-splitting is happening online, with one in three Canadians saying they would transfer money to friends/family through a banking app. What’s more, 45% of respondents say they would be open to hearing about new digital ways to split costs as they navigate ongoing economic uncertainty.

Advertisement 8

Article content

— PayPal Canada.

Spending tips for a holly jolly season – a few key tips from CPA Canada:

Seasons’ savings: As with every financial decision, treat holiday purchases with as much planning as other financial decisions and make a holiday budget. Avoid being one of the 11% of those surveyed who plan to avoid shopping at the last minute, which cuts down on impulse purchases that could waste money.

‘Sale’ away: Once a budget is in place, try to maximize each dollar you spend by seeking out deals on every item on your gift list. There are no shortages of holiday sales and over half of Canadians report an intention to shop on Black Friday, Cyber Monday, Boxing Day or other upcoming sales events. Just beware of overspending on things you don’t need because they have an attractive price tag ‘for one day only.’

Give a ‘priceless’ gift: For those looking beyond their wallet to give something truly priceless – the gift of time. Nearly half intend to give a non-traditional gift this year, including a gift they made themselves, or simply spending time or sharing an experience with someone.

Advertisement 1

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Source link

Denial of responsibility! galaxyconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.