Latest News

Winnipeg Free Press - PRINT EDITION

Canadians set to spend more over Christmas: survey

By: Sunny Freeman

Posted: 11/9/2012 1:00 AM | Comments: 0

TORONTO -- A BMO holiday outlook suggests Canadians' spending spirits have improved this season, with the bank projecting an average 15 per cent jump in holiday spending over last Christmas.

The Bank of Montreal's 2012 Holiday Spending Outlook finds survey respondents plan to spend an average of $1,610 this holiday season, up from $1,397 in 2011.

Related Items

Polls
- How much will you spend on gifts this holiday season?

Shoppers surveyed say they plan to shell out an average of $674 for gifts this year, compared to an average of $583 last year.

The top reasons for spending more are having more people to shop for and being better off financially.

Spending on trips is also projected to increase, while amounts allocated for entertaining were expected to fall from a year ago.

Nearly half of respondents say they'll set a loose budget, while three in 10 say they plan on sticking to a firm budget.

Other analysts weighing in on holiday spending this year also believe Canadians will be more generous with their finances.

A report released last week by Ernst & Young predicted Canadian holiday sales would rise 3.5 per cent over last year, supported by signs of improvement in consumer confidence.

And a study from Deloitte projected Canadians will spend one to two per cent more this holiday season, but an increasing number will check for the best prices online before they head to the mall in a season it expects to be highly price competitive.

Last year, sales were restrained by high household debt, modest wage growth and turbulent global markets.

But the economy has improved slightly since then and consumers appear more willing to open their wallets.

A survey conducted by BMO in January found households kept holiday spending in check, with 76 per cent spending less or the same on holiday gifts, trips and entertaining than in 2010.

Another boost to holiday sales this year could come from new sales pitches by toy makers, suggested Gerrick Johnson, a toy analyst with BMO Capital Markets.

"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 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."

One in five respondents to the BMO survey -- conducted by Pollara among 1,000 Canadians -- said they didn't plan on creating a budget at all.

And more than half (53 per cent) admitted to making impulsive purchases during the holiday season.

A majority of respondents, or 68 per cent, said they plan to begin shopping before December and 30 per cent said they planned to start prior to November.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition November 9, 2012 B4

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Latest News

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.