Canadians are planning to spend a little more this holiday season, but will be focusing on “spending smart,” according to a new report. The 2025 holiday retail outlook from Deloitte Canada shows holiday spending is projected to increase by three per cent this year, with spending on gifts and experiences up two per cent. “This year, Canadians are telling us that, actually, they will be spending,” Shaunna Conway, national retail leader at Deloitte Canada, told CTV’s Your Morning Ottawa Tuesday morning. “Some of that is part of inflation, some of that is part of Canadians are feeling resilient and resourceful as they head into the holiday season. While there is uncertainty, they’re going to continue to spend this year.” Non-gift purchases will be down eight per cent this holiday season, Deloitte said. The survey shows Canadians will spend an average of $1,521 on gifts, experiences, entertaining and non-gift purchases over the holidays. Conway said while Canadians are looking to spend this holiday season, they’ll be starting their shopping earlier. “They’re looking to bring that spend forward and start spending in October and really heavy in October and November, looking at that Black Friday, and they’ll be looking for discounts and pricing value,” Conway said. Twenty-three per cent of shoppers plan to spend on Black Friday/Cyber Monday and 20 per cent will shop in November, according to Deloitte. The survey finds 73 per cent of shoppers prefer to support local and Canadian businesses, but shoppers will also be focusing on their favourite retailers and brands for gifts, including Amazon and other mass merchants. “One of the key things this year that’s a little bit different is we’re seeing Canadians spend where there is a loyalty program of where they’re getting additional discounts,” Conway said. “It’s a big opportunity for retailers to think about is how are they getting those promotions out early, how are they ensuring that Canadians know where the value is in their product set.” Personal elf for shopping Deloitte Canada says many shoppers will be turning to AI for holiday gift ideas. The survey shows 63 per cent of respondents said they understand AI and 50 per cent have used it in the past three months. Conway says 33 per cent of Gen-Z shoppers will turn to AI for holiday gift inspiration, while 21 per cent of Canadians plan to use AI for help with their shopping list. “AI is being leveraged to ensure that you get the most personalized experience from the brand, that they’re resonating with you across all channels,” said Conway. “That’s allowing the consumer to kind of take that experience with the brand into their own hands and do custom searches and look at products, comparisons and get inspirations and really be kind of the champion of their own destiny when it comes to interacting with the retailer.” The survey found one in four Canadians believes retailers should use AI to assist with customer service. “More consumers are turning to AI tools and social media to guide what they buy,” Deloitte said in its report. “Retailers need to optimize their platforms for AI-driven discovery and making product information seamless and accessible wherever shoppers are looking. However, real value will come from focusing on high-impact use cases aligned with business needs, not just adopting AI for its own sake.” Some shoppers say tools like ChatGPT can be helpful. ““I get it to help me because I have four kids so it makes it easier to get ChatGPT to help organize it. I do ask where to go,” said Amanday Kylie. Others remain skeptical. “I’m not big on artificial intelligence because it drives me crazy that big brother is watching everything you might search,” Anne Scott said. With files from CTV News Ottawa’s Katelyn Wilson
