Canadians Expect to Spend More this Holiday Season
BMO’s 2012 Holiday Spending Outlook has revealed that Canadians expect to spend an average of $1,610 this holiday season. Whether Canadians are more generous or this season is more expensive, 2012’s spending forecast is up from $1,397 in 2011.
When it comes to holiday shopping, Canadians expect most expenses this season will go toward purchasing gifts for their loved ones, estimates averaging at $674. Seeing an increase of $100 from last year, Canadians expect to spend more money on holiday shopping due to the fact that they have more people to shop for said 41 per cent of those surveyed.
"For most Canadians, the holiday season can be an expensive time of year and one where prudent and responsible financial planning is essential," said Su McVey, Vice President, BMO Bank of Montreal. "Putting a holiday-specific budget in place ahead of time that sets clear spending limits can keep Canadians from over-extending themselves, and ensure other financial responsibilities and goals stay on track."
Other interesting trends showed that over half of Canadians have set a loose or flexible holiday budget, while 29 per cent have a fixed budget. When preparing for the season, 68 per cent of Canadians began shopping before December.
In the toy retail market, toy analyst Gerrick Johnson with BMO Capital Markets expects toy retailers' tactics to boost holiday sales.
"Consumers this year will benefit from a number of new tactics that retailers have implemented: hot toy reservation systems, more aggressive price match programs, same-day online delivery, and earlier and cheaper layaway," said Mr. Johnson. "These moves should help toy sales by making more expensive items more accessible, making all items easier to buy. They are also likely to entice earlier sales, which should help lift toy sales throughout the holiday season."