The low loonie is not putting a damper on Canadian shopping habits.
A survey conducted by GfK in Canada found that, despite the slumping Canadian dollar, most shoppers are not decreasing their holiday shopping budgets, with 57% saying they plan on spending the same amount this year as last year, while 13% say there are planning to increase their spending. Of those boosting their holiday spending, the majority (84%) are bumping up their budgets by at least 10%.
The GfK online survey was conducted among 1,000 representative Canadians in November 2015.
In-store versus Online
It seems the tactile experience of shopping in store continues to have strong appeal for shoppers, with Canadians saying they plan to do 70% of their holiday shopping in-store and 30% online.
Women Tightening Their Purse Strings
Women are more likely to cite that they expect their holiday spending this year to decrease compared to a year ago (29% versus 23% of men). In contrast, most men (61%) say their holiday spending in 2015 will stay the same.
Millennials Will Shop More Online
Retailers should get ready to cater to the Millennials (ages 24 to 34), as 21% of this group claims that they expect to spend more this holiday season versus a year ago (compared to only 14% of 35 to 44 year olds and 9% of 45 to 69-year-olds).
Optimizing the digital and omni-channel (shopping both in-store and online) experiences will be key to retailer success with Millennials, who say they will do nearly 40% of their holiday shopping online.
Western Canadians foresee the greatest reduction in holiday spending (31%) – particularly in comparison with shoppers in Quebec, who are more likely to hold their budgets constant (60%) or be undecided (6%). The reduction out West is not insignificant, with almost 50% of those who are planning on spending less anticipating cutting budgets anywhere from 25% to 75%.
Online shopping is expected to play a more important role for shoppers in the West, accounting for 32% of all shopping, compared to 24% for those in Quebec (where in-store shopping is higher than in any other region).
Cross-Border Patterns Reversing
The declining loonie is also keeping Canadians shopping north of the border, with 32% of Canadian shoppers saying they took fewer trips to the US in 2015 compared to last year. Interest in cross-border shopping has also declined, with 15% fewer Canadians planning to maintain their stateside shopping jaunts.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
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