Canadians shift spending to local businesses: Interac
Global pressures are reshaping how Canadians shop — and the shift is showing up on their receipts.
New survey data from Interac reveals that nearly eight in ten Canadians (78%) have redirected at least one monthly purchase from a big-box or international retailer to a local Canadian business since tariffs were first announced, with a quarter of Canadians shifting three to five purchases a month, and one-fifth of Canadians pivoting six or more.
Interac Debit transaction data reflects the purchase pivot: for the first time in recent years, small and medium sized businesses (SMBs) consistently outpaced larger merchants in year-over-year volume growth between April-July 2025. During this period, SMBs saw an incremental 15 million Interac Debit transactions, compared with the same months in 2024.
"Earlier this year, consumers told us they intended to shop more locally in light of tariffs — and they've followed through. While larger merchants have traditionally led in Interac Debit volume growth, small and medium businesses are now growing their volume at a faster rate," said Debbie Gamble, group head, chief strategy & marketing officer, Interac. "Our summer data snapshot shows Canadians are using their spending power with great intention — responding to global pressures through where they shop, what they buy and how they choose to pay."
How Canadians are spending this summer:
Small restaurants win big. Following tariff announcements, restaurants saw the most dramatic change. Within the April-July 2025 time period, volume growth for SMB restaurants was twice as large as their chain counterparts. Convenience stores and tourism-related SMBs also saw a boost.
Little treats, big comfort. At a time of heightened global economic uncertainty, many Canadians are turning to small indulgences — especially food — for comfort and connection. Nearly two-thirds (64%) say affordable treats help lift their mood, and 59%say it feels even better when those purchases support local businesses.
More than a third (35%) of boomers and 27% of millennials say purchases toward their health and wellness is the category they are least likely to eliminate from their budgets.
Made in Canada — or not made in the U.S. The preference for Canadian-made goods remains strong, with 70% of Canadians checking product labels for Canadian origin before buying. If a Canadian option isn't available, two-thirds (65%) say they prioritize goods made outside the U.S.
