Unwrapping 2024 Canadian holiday shopping trends

This holiday season, from November 1 to December 24, Canadian total retail sales are expected to increase 2.2% year-over-year (YoY), according to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment. In-store shopping is expected to continue to outperform online sales this year, as consumers look to maximize budgets browsing through brick-and-mortar storefronts for sales.  

“While Canadian consumers remain mindful of their spending due to various shifts in the economy, there are encouraging signs,” said Michelle Meyer, Chief Economist, Mastercard Economic Institute. “The drop in inflation and the reduction of interest rates should enhance consumers' purchasing power for the holiday season." 

Key trends to watch for this holiday season include: 

Gifting Gadgets: With a projected 4.2% YoY increase in electronics spending, Canadians are likely to splurge on the latest tech gadgets this holiday season. Price reductions along with the introduction of new devices such as phones and video games are anticipated to drive strong growth in this sector as electronics continue to be among the most sought-after items for 2024. 

Fashionably Festive: Spending on apparel is expected to increase 2.5% YoY this holiday season. The growth will likely be driven from consumers capitalizing on sales not only for holiday gifts, but as Canadians transition their seasonal wardrobes. 

Something That Sparkles: Much like apparel, spending on jewellery and other accessories is expected to increase this year. While always a popular gift idea, jewellery and accessories are expected to see a 2.6% YoY boost in spending as Canadians indulge on items such as necklaces, watches, and earrings. 

Holiday shopping may shift more significantly into December this year: Although holiday preparations seem to start earlier each year, Black Friday remains the traditional kickoff for the holiday shopping season. This year, Black Friday falls later in the calendar on November 29, creating a shorter holiday shopping season this year compared to 2023. As a result, a larger portion of holiday purchases will likely take place in December. 

“Retailers are investing in elevated in-store experiences to attract foot traffic this year, with many expected to introduce in-store exclusive deals to improve the physical shopping experience,” said Steve Sadove, Senior Advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Despite this, consumers are still expected to stay savvy and conscious of their budgets as they continue to maximize their dollar in search of the best deals – specifically looking in-store to find them.” 

Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.