Canadians Tighten Belts This Holiday Season, Gen Z Leads in Cutting Back
Canadians are tightening their belts this holiday season, with Gen Z leading the way in cutting back on spending. A significant shift in consumer behaviour is evident, with affordability taking precedence over patriotism in purchasing decisions.
PwC Canada's latest report reveals that Gen Z shoppers are more likely to prioritize affordability over buying Canadian products. Only 36 per cent of Gen Z would choose a more expensive 'made in Canada' product, compared to 64 per cent of baby boomers. This trend is reflected in their expected spending this year. Gen Z expects to spend 35 per cent less, around CAD 850, while millennials anticipate spending 11 per cent less, approximately CAD 1,200. In contrast, Gen X and baby boomers expect to spend marginally less, around CAD 1,400 and CAD 1,100 respectively.
Overall, Canadians are planning to spend 10 per cent less than last year during the holiday season. On average, Canadians expect to spend $1,675, down from $1,860 last year. More than 80 per cent of Canadians plan to spend less overall due to cost-of-living pressures. Retailers are advised to consider these budget constraints and preferences of different generations when pricing and promoting products during the holiday season.
The shift in consumer behaviour, particularly among younger generations, is a significant trend retailers should acknowledge. With affordability being the primary concern, retailers may need to adjust their pricing strategies and promotions to cater to the budget-conscious shoppers this holiday season.
