23 Nov

Canucks To Spend Less Holiday Bucks

Posted in News on 23.11.10 by John Meloche

Already fully entrenched in the holiday spirit, Synergy Marketing Consultants has been blogging a lot lately about holiday activities such as decorating and shopping. Naturally, when keeping your retail business in mind, it makes sense to take advantage of the season to do all you can to make the shopping experience at your business a memorable one for shoppers.

This will be especially important this year, as many shoppers are watching their wallets with extra care. With so many people on a budget, there is evidence that shoppers will not be spending as much as they might have in previous years. Just last week, The Canadian Press reported that retail analysts are predicting more frugal purchasing practices this year.

Citing a “recession-battered” Canadian public as a factor in the smaller holiday shopping budgets this season, it is apparent that there will be less splurging this year. The Canadian Press article interestingly also points out another reason why holiday shopping in Toronto may be slower to take off than usual.

“It doesn’t feel like the holidays yet,” said shopper Crystal Bowes, noting that the weather isn’t all that ‘wintery’ in Canada’s largest city, “so that influences me a little bit, but other than that it’s great because I can get more shopping done.”

“This warm weather is a killer,” added Brent Houlden, who is Deloitte Canada’s retail practice leader, “because we’ve all been programmed in our DNA to go shopping when we see snowflakes because that means Santa is coming.”

Deloitte recently completed their 2010 holiday outlook survey and concluded that, aside from the weather, Canadians are spending less as they are expressing great concerns about paying down debt over buying gifts. 44 per cent of the survey’s respondents plan on spending less this holiday season then they did a year ago.

In addition, the survey also found that even with extra money, most consumers would not increase their holiday spending budgets this year. Only 10 per cent of those surveyed said that they would spend any extra income on gifts while a whopping 75 per cent reported that they would either save the money or use it to lessen their debts.

Said Holden: “I think consumers are getting mixed signals (about the economy) and they’re reacting hugely rationally. They’re not totally out of the stores, but at the same point in time, they don’t have the debt capacity to drive huge purchases, so people are just being cautious.”

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