The 2025 Canadian holiday outlook, as detailed in the latest PwC Canada survey, points to a season marked by more thoughtful spending, generational divides, and shifting loyalties to domestic brands. With over 1,000 Canadian consumers polled in late summer, the data provides retailers with essential guidance for engaging holiday shoppers this year.
Canadians Cutting Back for the Holidays
Canadian consumers plan to spend an average of $1,675 on gifts, travel, and entertainment, representing a 10% decrease over last year but a 2% increase from 2023. While 81% of respondents are considering cutbacks in various areas—especially gifts for friends, pets, and themselves—spending on family remains a priority. PwC researchers explained that as wallets are tightening, Canadians will be making hard choices about where to spend their money. Slightly over eight out of ten respondents are considering cutting back to save money over the next six months. While they don’t plan to cut spending on family members, they do plan to cut spending on gifts for friends, pets, and themselves compared to last year.
Reducing reliance on credit cards and increasing debit card use is another notable trend, as consumers strive for better control over their budgets and spending habits.
Generational Spending Differences
The most significant declines in holiday budgets are seen among Gen Z and millennials, who plan to spend 34% and 11% less than last year, respectively. These groups are navigating economic uncertainty, entering the workforce, moving into their own homes, beginning new mortgages, and—particularly for millennials—starting families. The survey authors explained that more Gen Z consumers have entered the workforce and set up their own residences. Many millennials have now had children, are early into mortgages, and could be affected by job losses.
Beyond budget constraints, younger Canadians place a premium value on brand transparency, sustainability, and digital convenience. For example, 44% of Gen Z respondents plan to use self-checkout technology, and 44% of Gen Z and 41% of millennials favor mobile payment solutions, notably higher than the 29% average for all consumers.
Local Loyalty and Canada-First Sentiment
A notable shift emerged in attitudes toward domestic products: 49% of Canadians now say they will choose a Canadian-made product at a higher price if a similar imported item is available. Comparing generational preferences, 64% of baby boomers opt to pay more for homegrown brands, while 62% of Gen Z prefer to save money on imports. As the survey notes, almost half of respondents (49%) say when buying holiday gifts, they would choose a product made in Canada that costs more if two products have a similar look, feel, and quality.
This Canada-first mentality is also reflected in the sharp drop in planned cross-border shopping. Just 12% of Canadians intend to visit the United States to shop during the holidays—a decline from 20% last year—and new de minimis rules will likely lead to fewer younger customers shopping online across the border.
Regional Spending Patterns
Holiday budgets vary by province, according to the survey:
| Region | Average Spend | Year-over-Year Change |
| British Columbia | $1,821 | ▼14% |
| Ontario | $1,788 | ▼10% |
| Atlantic Canada | $1,581 | ▼12% |
| Prairies | $1,557 | ▼29% |
| Alberta | $1,532 | ▼8% |
| Quebec | $1,532 | ▲4% |
| Canada (national) | $1,675 | ▼10% |
Physical Retail Maintains Its Appeal
Although digital retail continues to expand, in-store experiences remain central for Canadian shoppers. 56% of respondents said that the ability to see and touch products motivates their store visits, and 64% plan to make purchases in person. The authors emphasized that in-store shopping is an integral part of the holiday experience for many. The tactile element of in-person shopping continues to be key, with the highest number of respondents (56%) ranking the ability to see and touch products as a factor.
Gift cards top the list of holiday purchases, chosen by 47% for family and 51% for friends. Retailers should ensure gift cards are accessible and strategically placed.
Human Touch in Customer Service
Addressing high-stakes purchases and travel disruptions, Canadians demonstrate a clear preference for real human support. 73% would rather speak to a customer agent by phone, with only 9% choosing to use AI or chatbots. People want to interact with a person or have a person-like experience, so retailers need to continue to invest in people while they work towards significantly improving their usage of tools such as agentic AI.
Retail Strategies for 2025 Success
The evolving landscape means Canadian retailers must focus on:
- Personalized marketing and digital service upgrades
- Competitive pricing and quick promotions
- In-person experiences and gift card placement
- Customer service delivered by real agents
Despite caution and economic uncertainty, there are significant opportunities for brands that understand shifting preferences and generational trends. By focusing on consumer-centric strategies, retailers can create the vibrant and engaging shopping moments customers are looking for over the holiday season—and beyond.
