Their growing disposable incomes, as Gen Z enters the workforce and Millennials advance in their careers, are contributing to this increased spending on gifts, travel, and entertainment.
In contrast, Gen X and Baby Boomers are reducing their holiday spending. Gen X expects to spend $1,766, down by 11 percent, and Baby Boomers plan to spend $1,412, reflecting a 9 percent decrease. This cautious approach from older Canadians has resulted in decreased spending across all categories.
“Retailers across Canada are poised to benefit from a clear spending surge from younger Canadians this holiday season, despite the affordability challenges that make headlines every day,” says Elisa Swern, National Retail and Consumer leader at PwC Canada.
She advises retailers to align their strategies with the values and buying preferences of younger shoppers, such as prioritizing quality, sustainability, and embracing digital payment platforms.
Canadians, on average, estimate that they will spend $1,853 on gifts, travel, and entertainment during the holiday season, reflecting a 13 percent increase from last year.