As holiday shopping season approaches, we sat down with Danai, Rakuten Rewards Canada’s resident shopping expert, to talk about managing the financial stress of holiday shopping while maximizing savings. With her background in journalism and brand marketing, Danai has a knack for spotting trends and discovering the best deals. She’s here to share insights from Rakuten.ca’s 2024 Holiday Spend Survey, highlighting Canadians’ shifting shopping habits and providing practical tips to make the most of your holiday budget. From effective budgeting to leveraging cash-back rewards, Danai’s advice ensures you can celebrate the holidays with financial peace of mind.
Meet Danai – media spokesperson and resident shopping expert at Rakuten.ca, where she turns shopping into a masterclass in money management. Her experience in journalism and brand marketing gives Danai the tools required to spot trends and uncover the best deals; she’s on a mission to help consumers make the most out of their shopping experience. She is dedicated to sharing valuable tips and insider secrets, ensuring you never miss a great offer – because with Danai leading the way, you’ll be a pro at turning every purchase into a win.
Your 2024 Holiday Survey revealed that 4-in-5 Canadians are feeling stressed about holiday spending. What are the main contributors to this stress, and how does it compare to previous years?
High inflation, increased interest rates and the cost for everyday essentials continues to be a concern amongst Canadians forcing them to spend their money more wisely this holiday season. According to Rakuten.ca’s annual Holiday Spend Survey, anticipated stress is due to inflation with gift prices, coordinating schedules and hosting loved ones. As you mentioned, 4-in-5 (81%) Canadians are stressed about the cost of buying holiday gifts this year – even higher among those under 35 and in the Atlantic provinces. Building on the cost of gifting is the time required to shop for holiday gifts with 70% of respondents agreeing strongly/agreeing somewhat this is the second most stressful aspect of the season.
Across the board, we’ve seen similar attitudes to adjustment in gifting tactics, such as organizing/partaking in White Elephant gift exchanges (33% in 2024, 29% in 2023), shopping second hand (36% in 2024, 28% in 2023) and dropping recipients from guests lists (34% in 2024, 33% in 2023).
With inflation affecting gift prices and holiday budgets, what did your survey uncover about Canadians’ changing spending habits this holiday season?
The average anticipated spend for holiday gifts this year sits at $637 – up from $570 from 2023 and $600 in 2022, and up significantly from the pandemic low of only $466. Parents cite the highest average spend at $791 and geographically, those in the GTA have an average anticipated spend of $676.46.
With anticipated overall holiday spend increasing, we’re seeing a trend of Canadians adopting multiple tactics to save money – with an average of six tactics being used from loyalty programs, shopping sales and more. Some of these include:
- 56% of Canadians start budgeting throughout the year to offset the cost of gifts, travel, entertaining and more.
- 81% of Canadian shoppers set at least an approximate budget for their holiday gifting, up from 76% last year.
- 58% use loyalty programs to earn cash back on their holiday purchases
What are some practical tips for Canadian shoppers to maximize their holiday spending while still enjoying the festivities?
While it may take a little time upfront, planning and research are a great place to start when it comes to maximizing holiday spending while still enjoying the festivities. Practical tips for Canadians to save more this holiday season include:
- Plan ahead: Create a budget to help prevent overspending and keep you focused on what you need to buy
- Stacking deals: Sale prices aren’t the only way to save money. Do additional research to find the best deals and see where you can stack multiple offerings. By leveraging Cash Back apps like Rakuten.ca, you can also earn money in addition to your savings.
- Shop online: Many retailers have higher deals online, and Rakuten.ca works with over 750+ merchants offering cash back on online spending
- Key sales moments: The survey showed more Canadians than in previous years planning to shop on big sales moments like Black Friday and Cyber Monday
For Canadian retailers, what strategies would you recommend to attract holiday shoppers and stand out during major shopping events like Black Friday and Cyber Monday?
The survey showed more Canadians than in previous years planning to shop on big sales moments like Black Friday and Cyber Monday (31% more plan to shop on Black Friday and 27% more on Cyber Monday). 81% Young Canadians under 35 specifically plan to shop on Black Friday and 57% on Cyber Monday.
Some tips for Canadian merchants this holiday season include:
- Plan ahead: Be prepared for the holiday demand by streamlining operations for an efficient shopping experience
- Stacking deals: Understand that many Canadians are looking to save, so offer promotions, deals or consider partnering with Cash-Back programs, such as Rakuten, to ease shopping stress for Canadians
- Shop online: Consider offering opportunities for an easier online shopping experience
As Rakuten.ca gears up for Travel Week and the busy holiday shopping period, are there any exciting upcoming promotions or events that our readers should know about?
Member Appreciation Week is coming up, where members can get 3x Cash Back on select retailers. Participating merchants include Dyson, IHG Hotels & Resorts, Crocs Canada, Athleta, and more.
Historically, Rakuten.ca has offered its users an increased Cash Back amount during the holiday season, often upwards of 30% depending on the merchant. The promotions range from apparel, travel, tech and more.
While I cannot confirm what the deals will be, all of our users who receive and open their emails from Rakuten.ca can see a snapshot of what deals are live and can take full advantage of them.
