Trade tensions, rising costs have Canadians expecting to cut holiday shopping

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Photo by Jeremy Weine/Getty ImagesConsumers plan to spend carefully for the holidays this year, as budget pressures and trade tensions reshape consumer habits in the retail landscape this season, according to PwC’s 2026 Canadian holiday outlook.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe report said Canadians plan to spend 11 per cent less this holiday season than last, for an average of $1,487 on gifts, travel and entertainment. Households with children plan to spend nearly double those without.This advertisement has not loaded yet, but your article continues below.Holiday shoppers are also making choices and trade-offs accordingly as spending contracts. Travel is set to see the the steepest category decline in spending, down 14 per cent, as many travellers plan to remain close to home or stay with friends and family.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againBut less spending overall doesn’t mean less shopping activity, as consumers plan to look for discounted pricing and promotions.“We’re seeing the rise of an active but cautious shopper,” the report said.This year, 75 per cent of Canadian consumers say they’re taking steps to stretch their spending, while 69 per cent plan to purchase less expensive alternatives.They also plan to be strategic about when they do their shopping. Younger generations plan to concentrate their shopping this year around peak promotional windows over the Black Friday weekend, while older generations plan to delay their spending into December.A significant majority of Canadian consumers say deals and discounts will influence their holiday shopping.The report said retailers that continue to align their promotional cadence to Black Friday and December will be better positioned to move inventory.This advertisement has not loaded yet, but your article continues below.Meanwhile, elbows are still up as Canadian consumers show patriotism with their wallets.As trade tensions sharpen focus on product origin, support for Canadian products is expected to remain strong as a majority of consumers are willing to pay more for domestic goods, giving retailers an opportunity to differentiate on origin and value.Despite planning to spend less overall this holiday season, buying Canadian has become even more important to shoppers.The survey said more than half or 54 per cent of consumers say they’ll pay more for a Canadian-made product, up from 49 per cent last year. Plans to cross-border shop stay roughly half of historic levels.“Just like last year, we see further evidence of Canada-first sentiment in the low number of consumers planning to cross-border shop this holiday season,” the report said. Just over one out of ten Canadian consumers plan to cross-border shop, down from 20 per cent in 2024.The survey was conducted in July and early August before the recent round of tariff escalations, so the numbers may under-represent current Canadian sentiment, it said.About 72 per cent of Canadian consumers continue to actively look for alternatives to U.S.-made products as they do their holiday shopping.The trade dispute could also affect holiday prices. New Canadian surtaxes on select U.S.-origin goods could increase costs for some importers and retailers. Separate U.S. measures may also create additional costs and market-access challenges for Canadian exporters.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.