November is only a few hours old but already the business community is abuzz with talk about consumer spending and the holiday season.
Financial services firm Ernst & Young (E&Y) predicted Monday that consumers’ wallets will “open slightly more widely” this year than last.
“Uncertainty is still on consumers’ minds and confidence is not back at the level it was before the recession, but the good news is that consumers are looking for the fun factor and more exciting gifts,” said Daniel Baer, E&Y partner and national retail industry leader.
The firm predicts four themes are likely to dominate consumer spending this holiday season:
Despite the positive prediction, E&Y reiterated that consumer confidence in Canada fell for the fourth straight month in September and retails sales were down as well.
The firms believe holiday sales will increase between 2% and 3% this year compared with 2009, and discount chains, warehouse clubs and dollar stores will account for an important share of holiday spending.
“The trends that we have seen since 2008 are still a reality but there is some hope,” Baer said.
Meanwhile, Burnaby-based Future Shop, the country’s largest consumer electronics retailer, released a survey Monday that showed 44% of Canadians suffer from holiday gift-giving anxiety.
The survey polled 1,028 adults online and found that the reason behind gift-giving stress might be the result of how Canadians choose their gifts.
Future Shop said 49% of Canadians choose gifts based on what they think the other person might like, which is why the retailer has put a new emphasis on product experts to help potential buyers.