Canadians will start early, spend smarter this holiday season
The holiday season has always been a high-stakes battleground for Canadian retailers but, in 2025, shoppers are entering with a mix of caution, creativity and resilience. According to Caddle’s latest research, conducted in August, Canadians are not opting out of holiday celebrations, they are redefining how and where they spend. With advertising costs peaking and consumer attention fragmented, the pressure on brands to show up with the right value at the right moment has never been greater. For retailers, the insights paint a clear picture: the holiday shopper journey is earlier, more digitally influenced and more selective than ever before.
Forty-two per cent of Canadians say they begin shopping in November or earlier, while another 18% admit they wait until two weeks before the holidays to shop. That leaves retailers balancing both early planners and last-minute scramblers—a dual mindset that calls for consistent, extended promotions across the calendar. Black Friday and Cyber Monday remain the centrepieces. Nearly 1 in 3 Canadians plan their holiday spend around this window, with millennials (39%) and generation Z (38%) leaning most heavily on these tentpole events. Older generations, by contrast, are more likely to spread their purchases into December.
While inflationary pressures continue to influence wallets, Canadians are determined to celebrate. Almost half (46%) say they are shopping more selectively but still want to enjoy the season, and another 34% report they are cutting back to essentials. Only a small minority (5.5%) say they are skipping most shopping altogether. The focus on value is strongest among younger Canadians. Generation Z (49%) and millennials (47%) are the most deal-driven, reporting that discounts matter more this year than in previous seasons. Older cohorts (baby boomers and the Greatest Generation) are less swayed by price tags alone, leaning instead on loyalty and familiar retailers to guide decisions.
READ: Deloitte Canada's holiday retail outlook shows spending expected to rise by 3%
Food, drinks and hosting represent a large share of seasonal spend, with baby boomers leading grocery purchases, while generation Z and millennials allocate more towards parties and travel. This broadening of budgets underscores the need for retailers to think holistically about holiday baskets.
Despite the growth of e-commerce, big-box in-store shopping remains dominant, with 35% of Canadians saying they plan to do most of their holiday shopping at major retailers. That said, 28% will shop online through the same big retailers, and younger cohorts are increasingly turning to social platforms to discover and purchase products—with 12% of generation Z and 9% of millennials saying social commerce is their channel of choice. Inspiration also varies by generation and region. Retailer websites and apps lead overall, especially for baby boomers (41%), while in-store signage remains a powerful trigger for older shoppers. Social media is nearly 1.5 times more influential for generation Z than baby boomers, highlighting the needs for multichannel strategies that adapt to shifting discovery habits.
For all the excitement, holiday shopping isn’t without frustrations. High prices top the list, discouraging 51% of Canadians. Crowded stores (32%) and out-of-stocks (17%) also rank high as barriers, reinforcing the importance of seamless in-store execution. When asked what makes for a standout in-store experience, Canadians say clearly marked promotions (48%), fast checkout (28%) and helpful staff (23%) define success. These fundamentals, while simple, are essential for building trust and keeping shoppers engaged through a hectic season. The 2025 holiday season is less about unchecked splurging and more about balancing joy with pragmatism. Shoppers want deals, but they also want reliability. They are looking for trusted product information, convenient experiences and brands that respect both their budgets and their time. For retailers, the opportunity lies in meeting shoppers where they are—both early and late, online and offline, price-sensitive and loyalty-driven. Those who combine sharp promotions with consistent omnichannel messaging, well-stocked shelves and service that reduces friction will not only capture share of wallet this season, but set the stage for lasting loyalty well into the new year.
This article was first published in Canadian Grocer's November 2025 issue.
