Canadians to Cut Holiday Spending by 14 Percent

A new retail report finds average seasonal spending will reach a record low of $1,305 per consumer.

Updated on Oct. 20, 2026 in Spending

Gouache-painted illustration of a single evergreen branch and a plain matte gift tag, evoking mindful seasonal spending in Canada. — Deloitte Canada reports that holiday spending is expected to drop 14 percent this year, as consumers adapt to economic uncertainty. AI Illustration. Upload story photo >

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Do you plan to spend less on holiday gifts this year compared to previous years?

Deloitte Canada projects that Canadian holiday spending will fall by 14 percent this year. Consumers anticipate an average spend of $1,305, the lowest level recorded since the firm began tracking seasonal expenditures.

Why it matters

Economic uncertainty and concerns regarding potential tariffs are driving a shift in behavior. Consequently, shoppers are increasingly prioritizing value when planning their holiday budgets.

Canadian holiday spending is projected to decline by 14 percent. The average spend per consumer is expected to reach $1,305, marking the lowest figure since Deloitte began tracking seasonal expenditures.

The players

Deloitte Canada

This professional services firm provides audit, consulting, financial advisory, and tax services while conducting regular market research on Canadian consumer trends.

The details

Consumers are actively adjusting their financial habits to navigate a climate of economic instability. The focus on value-driven shopping reflects a broader response to external fiscal pressures and trade concerns.

The 2026 holiday retail outlook and spending predictions were released in 2026.

Market Dynamics

This projected decline in spending follows the patterns identified in the Deloitte Canada 2026 Holiday Retail Outlook. The current trajectory marks a clear departure from historical consumption habits established during past holiday seasons.

Retailers and investors may need to adjust their expectations for end-of-year profit margins as consumer budgets tighten. Families should anticipate a more value-conscious market environment that may prioritize budget-friendly goods over premium options.

The takeaway

The shift toward value-based shopping suggests that households are choosing to conserve capital amid economic uncertainty. Consumers may find success this season by focusing on early budget planning and prioritizing essential purchases.