Canadians are expected to cut their holiday spending by 14% this year, according to Deloitte Canada’s 2026 holiday retail outlook. The average planned spending is projected to drop to $1,305, down from $1,521 in 2025. This decline is driven by a 5% reduction in gift and gift card purchases, as well as significant cuts in holiday entertaining and experiences. Spending on alcohol, cannabis, groceries, and travel is expected to fall by 22% and 20%, respectively.
Deloitte Canada national retail leader Shaunna Conway noted that economic uncertainty is making consumers more discerning. While Canadians aren’t canceling the holiday season, they are prioritizing value. Retailers offering clear, compelling value propositions will likely attract more shoppers this year.
The survey revealed that 83% of respondents are concerned about the impact of tariffs on prices and the broader economy. One in three Canadians reported worsening household finances compared to last year, and 45% anticipate economic weakening by 2027. Despite this, 45% of consumers consider Canadian or local ownership important when shopping, though 35% prioritize value over local ownership.
Black Friday and Cyber Monday are still expected to be busy, with over half of holiday budgets anticipated to be spent during this period. Consumers are actively seeking discounts, with 78% looking for promotions to protect their budgets. Shopping journeys are becoming more fragmented, with an average of 16 stores and digital destinations planned for gift purchases, up from 14 last year.