It’s no surprise that Canadians are one of the world’s largest holiday spenders as their average household income is $81,000 per year, which places them amongst as one of the wealthiest countries around.
Christmas Industry and Canadian Spending Habits
Even if Thanksgiving and similar national holidays are not taken into account, the average Canadians holiday spending is $792, as compared to about $700 per the average American.
Canadians spending habits makes the economics of Christmas or their ‘Christmas Industry’ a significant part of the retail business economics. The Christmas season is one of the more popular holidays in the world, in general, and it is one of the most expensive ones.
What does this mean for Canadian Retailers?
While seasonal spenders and retailers are a burden on real-estate, timing your strategies right is integral in turning a profit.
Retailers can benefit quite a lot through profiting from another big Christmas related holiday, the newly worldwide Black Friday as an example.
The business of leasing to independent retailers during the holiday season a popular one. Independent retailers are the businesses that set-up shop for the holiday season only because of the profit potential. Then after the holiday they may close shop until the next holiday season or some realize they will stay because business is strong.
Are Canadians Directly Benefiting?
Canadians are not fully reaping all the benefits of the season. The competition from Asia has taken quite a toll on local manufacturers, merchants, and stores, as the prices that they offer are very competitive. Thus, Canadian retailers need to stay on top of the competitions in the more competitive seasons, such as Christmas.
An excellent way to do this is by correctly timing your sales. According to the Retail Council of Canada over 72% of Canadians begin their Christmas shopping by November. While most still spend their money with a Canadian retailer, many are also shopping online with international retailers.
The most popular items purchased during the Christmas season are: food, alcohol, eletronic appliances, entertainment, clothing and of course toys. As such, retailers who specialize in manufacturing and selling these types of products will greatly benefit in the holiday season. And those who sell other types of products will notice they receive most of their profit during the rest of the year. Investing in retail in Canada is always a win with the right development team.
Summary
Canadians have very particular spending habits, yet don’t vary much from other consumers.
Every region has their specific wants, needs, requirements, and preferences. For example, Albertans are far less likely to shop through e-commerce platforms, while Reginans are adopting this platform more and more.
The only consistent rule that applies to Canadian spending habits is influencing. Keeping up with modern times through proper, time-efficient marketing strategies is the best way to profit this popular time of year!