Affordability considerations amid the heightened value of dwelling and a tricky job market impacted by the commerce struggle and tariffs could also be altering how Canadians store this vacation season, together with how a lot they spend and whether or not they prioritize shopping for native.
That’s in response to the newest survey knowledge from the Bank of Montreal, which additionally discovered customers might have already finished quite a bit or all of their buying due to worth considerations.
“In the wake of current tariff will increase, rising unemployment, and an upturn in inflation, it’s not shocking that Canadian customers are feeling a way of trepidation heading into the vacation season,” Sal Guatieri, senior economist with BMO, stated in a written assertion.
BMO’s survey was carried out from Sept. 3 by way of Oct. 11 and requested 2,500 grownup Canadians about their vacation spending plans this yr.
Sixty-one per cent of respondents stated they’ve adjusted their vacation buying plans ultimately as a result of tariff considerations, and 41 per cent stated they had been slicing again on how a lot they deliberate on spending for presents and different vacation gadgets.
Twenty-five per cent stated they began their vacation buying earlier to keep away from potential worth will increase.
This comes after the Bank of Canada warned that buyers had been feeling “cautious” forward of the vacation buying season, and after the Royal Bank of Canada reported customers had been spending much less, citing bank card knowledge.
A separate report from PwC Canada discovered 80 per cent of customers stated in the course of the summer time that they deliberate to spend much less total in the course of the vacation season and a median 10 per cent lower than final yr.
Inflation in September confirmed client costs on common elevated 2.4 per cent in contrast with a yr in the past, in response to Statistics Canada.
An unsure job market can also be weighing on customers in the course of the holidays, with unemployment hovering round seven per cent, and it’s even worse for youthful Canadians at over 14 per cent, in response to authorities knowledge.
“By weakening the financial system, the commerce struggle has lifted the unemployment price, undermining client confidence and earnings progress,” Guatieri stated.
Some retailers like Costco have adjusted their in-store vacation shows by focusing much less on seasonal decorations, toys and different non-essential gadgets to supply extra space for “requirements,” like meals and clothes.
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Forty-six per cent of respondents to the BMO survey stated gross sales and reductions had been inflicting them to spend extra or buy extra presents than they initially supposed.
Retail consultants say client instruments like loyalty applications might help to save cash in the course of the holidays, however provided that they’re used successfully.
Over a 3rd of respondents within the BMO survey, 36 per cent, stated they knowingly sacrifice their long-term financial savings to afford their vacation spending plans. That backed up a separate report from Willful in October discovered practically half of survey respondents, 46 per cent, stated they needed to dip into their financial savings to maintain up with day by day bills.
The BMO survey outcomes present customers are making cutbacks on some elements of their vacation buying checklist greater than others.
For instance, 46 per cent of respondents stated they plan on slicing spending probably the most on vacation decorations, 43 per cent stated journey, 42 per cent on eating out, 40 per cent on toys and video games, 38 per cent on alcohol, and 36 per cent on each clothes and entertaining company, the report says.
Overall, Canadians stated they deliberate on spending a median of $2,310 this yr, in contrast with $1,991 in 2024’s survey.
In the 2025 survey, 15 per cent stated they’re budgeting to spend extra on presents in anticipation of upper costs, and the most important change yr to yr was journey spending expectations.
In 2025, BMO survey respondents stated they deliberate on spending $545, whereas in 2024, it was greater than triple that quantity at $1,801.
The 2025 survey additionally confirmed respondents anticipate to spend a median of $517 on meals and groceries in the course of the holidays, whereas final yr’s survey didn’t embrace the identical class.
Buying Canadian in the course of the holidays
Consumers might have shifted their vacation spending plans due to larger costs and an unsure financial system and job market, however the survey outcomes additionally present Canadians could also be extra conscious in terms of what they particularly select to purchase.
In the BMO survey, 37 per cent of respondents stated they had been seeking to keep away from merchandise impacted by tariffs, together with buying extra Canadian-made merchandise.
Tariffs imposed on Canada and different international locations by the United States have fuelled a way of client patriotism ever for the reason that commerce struggle started, with the Buy Canadian motion doubtlessly set to peak in the course of the busiest buying season of the yr.
The added prices on some gadgets because of tariff insurance policies might not be the one purpose Canadians are delay from shopping for them.
A separate Ipsos ballot carried out completely for Global News in September discovered 58 per cent of respondents had gone out of their option to particularly keep away from American merchandise, providers, investments and journey.
Another ballot discovered six in 10 Canadians stated they’ll by no means belief Americans the identical means once more — a well-liked feeling after U.S. President Donald Trump repeatedly steered Canada ought to turn out to be the “51st state.”
This means it might not be the wallets of Canadian customers which can be hurting due to tariffs, it might even be sentiments total, which might clarify the push in direction of selecting Canadian-made merchandise wherever attainable over these made within the U.S.
Travel statistics additionally proceed to indicate declines amongst Canadians travelling to the U.S.
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