Atlantic Canadians will spend more on holiday shopping than other provinces, says new report
Altantic province residents will spend almost $1,100 per person, says Retail Council of Canada
The Retail Council of Canada says Atlantic Canadians will spend more money during the holiday season than any other region in the country despite inflationary pressures and the rising cost of living.
A report from the council released this week says the average Canadian will spend about $900 per person for the holiday season, but Atlantic Canadians will spend over $1,100 — up from $782 last year.
It comes at the same time that 80 per cent of Canadians are concerned with the state of their finances, according to the council's Atlantic director, Jim Cormier.
"Because of that, another 80 per cent are saying they'll spend the majority of their budget on buying gifts for others, but they will look for more deals and sales than they have in previous years," Cormier told CBC News.
Those deals can often come around shopping events like Black Friday, but Cormier says the report shows over 28 per cent of Canadians started holiday shopping as long ago as August to try to get the best prices on goods.
"We've been waiting for signs that people are going to be spending less because of inflationary pressures. But it's still not happening," Cormier said. "That said, consumers are becoming more savvy because they understand that, 'OK, maybe my money isn't going as far as it did a few years ago.'"
Cormier said the most popular gift items — like clothing and home entertainment items like food and alcohol — haven't changed. However, gift cards purchases have increased in the past few years.
The report suggests 45 per cent of Canadians intend to purchase gift cards this holiday season and 37 per cent of Canadians would prefer a gift card over a physical item.
Shopping online remains popular following the height of the COVID-19 pandemic, but 82 per cent of shoppers will buy locally, according to the report.
Al Antle, a credit counselor in St. John's, says people coming together after three years of altered holidays could play a factor in increased spending. He just hopes people will plan their spending accordingly.
"If you do not have cash, do not spend it," Antle said.
"You have to build the cost of credit into the cost. You have to, otherwise you're lying to yourself.… We have to be aware of the fact that when you buy on credit, you increase the cost of whatever it is you're buying significantly."
Antle said the number of people he sees seeking credit counselling typically rises in January, adding his business is seeing up to 40 cases a month as people continue to recover from COVID-19 financially.
If you don't feel like breaking the bank over the holidays, Antle says, there are other options — like charitable donations or experiences and events with family that highlight the true meaning of the holiday season.
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With files from Mariam Mesbah and Carolyn Stokes
