Budgets are down and consumer focus on value is up this holiday season, survey finds
Canadians are trimming their holiday budgets, but they’re shopping for value, not just deals, according to the 2026 Holiday Shopping Survey by the Retail Council of Canada (RCC) and Leger.
The ninth annual survey found that Canadians plan to spend $911 during the festive season compared with $975 last year, a decrease of 6.5%.
More than half of consumers (52%) expect to spend about the same as last year, while 22% plan to spend less and 22% plan to spend more. Regardless of whether their budgets are up or down, 82% are confident they’ll be able to buy everything they plan to. Gifts for others make up 86% of planned holiday spending, while purchases for themselves represent 14%.
“Canadians are adjusting their expectations and they’re making choices about what they can afford, rather than simply giving up on holiday shopping,” said Luc Dumont, senior vice-president of consumer insights at Leger, during a recent webinar exploring the findings. “I think that’s an important distinction because budgets are getting tighter.”
For retailers, Dumont added, the challenge is not just getting consumers to spend. “It’s convincing them that your products, your offers and your experience deserve a place in that budget.”
In terms of categories, consumers say clothing and accessories will represent the largest portion of holiday spending, increasing from 17% last year to 19% this year. Meanwhile, food and alcohol for holiday entertaining are expected to account for 14% of the budget, down from 16% last year.
“These are not dramatic shifts, but they do show that consumers are making adjustments to every part of their holiday budget, and they’re doing that differently depending on the category,” said Dumont.
When it comes to gift-giving, Canadians are no Scrooges. More than half (53%) said giving something memorable or meaningful matters most, compared with 23% who prioritize finding the lowest price. “Even in a year when budgets are under pressure, the cheapest option is not necessarily the most appealing,” said Dumont. “Consumers still want their gifts to feel thoughtful and appropriate for the person receiving them.”
As in previous years, gift cards account for 16% of planned holiday budgets, with 67% of shoppers choosing them for convenience. “But almost as many—64%—say that they like giving the recipient the freedom to choose exactly what they want,” Dumont said. “So, gift cards are not an impersonal option. They can be a way of giving someone flexibility and choice.”
READ: A look at the trends filling this year’s holiday grocery basket
For retailers, the opportunity goes beyond simply promoting products on price. “It will be about helping consumers find gifts that feel right for the recipient, whether that’s through personalization, flexibility, uniqueness or convenience,” said Dumont.
All about value
While budgets are strained, 39% of Canadians say they look for the best overall value, compared with16% who prioritize the lowest price. Dumont said consumers are increasingly evaluating the broader offer, including product availability, promotional pricing, convenient shipping and the feeling that it’s a worthwhile purchase.
“All these considerations can contribute to how consumers will perceive the value, and for retailers, that’s a very important opportunity,” he said. “Remember that competing on value doesn’t necessarily mean being the cheapest. It means making the overall offer compelling and making it easy for shoppers to understand why it’s worth choosing. The complete experience can ultimately determine where consumers decide to spend.”
That said, deals still matter. Nearly two-thirds (64%) will look for more deals than in previous years (63% in 2025), and 43% hold off on purchases until major sales events, such as Black Friday and Cyber Monday, up from 39% last year.
And while 84% of Canadians say that a Made in Canada label would make them more likely to purchase a gift, 52% have a caveat: if the price is reasonable.
“The majority of that potential support is conditional on affordability, so as a retailer you have to think about that distinction,” Dumont said.
While a made-in-Canada label can be a meaningful differentiator, Dumont said it does not eliminate the need to demonstrate value to consumers. Retailers should avoid asking consumers to choose between buying Canadian and getting good value. “They will need both.”
