While holiday spending won’t hit pre-recession levels, it should be better than it was the last couple of years, according to a new survey from Maritz Canada.
Based on online interviews with 1,500 people 18 and older, the survey found that Canadians will spend an average of $602 on gifts this year, a 6% increase over the past two years.
The results are considered accurate within 2.53%, 19 times out of 20.
“We do see a modest improvement in holiday spending after a pretty significant dip in 2008 and $2009,” said Rob Daniel, managing director of Maritz Research Canada, a division of Mississauga, Ont.–based Maritz Canada. “We’re still not back to where we were in 2007–when the average spend was $636–but we are seeing things head in the right direction.”
The study also showed credit cards will be used frequently this year, with 43% of respondents indicating they’ll do some shopping on credit up from 34% last year. That’s a double-edged sword for retailers, said Daniel, since it could mean a “dark” January and February when the credit card bills arrive.
The rise in credit card spending signifies that Canadians may be feeling a little bit more financially secure, said Daniel, but it also underscores how important credit card loyalty programs have become in influencing consumer purchase decisions. More than half of survey respondents said that their method of payment depends on what will earn them the most loyalty points.
The stronger Canadian dollar also means that more Canadians–16% versus 11% in 2009–will do their shopping in the U.S. this year. More than half, 59%, of Canadians said that better prices for the same products and services is the leading reason they will purchase gifts outside their own country.
The report also indicated “modest” year-over-year growth for online shopping, with 11% of Canadians saying they will make an online purchase this year compared with 9% in 2009.
Clothing and apparel will be the leading gift choice for 52% of Canadians, although gift cards continue to emerge as a top gift choice, with 49% of Canadians indicating their intention to give gift cards this year, up from 39% in 2008.
Other leading gift choices are entertainment items such as CDs, DVDs and games (48%), followed by toys (43%), beer, wine and spirits (41%), electronics (37%) and candies/chocolate (36%).
Survey respondents indicated Walmart will be the leading holiday shopping destination, with 66% saying they plan to shop at the store and spend an average of $116. It is followed by Canadian Tire (44%), Zellers (41%), Future Shop (34%) and liquor/beer stores (34%).
