It will be a long Black Friday and Cyber Monday shopping weekend in the U.S. and Canada.
But in Canada, shoppers will be a little pickier and budget-conscious about the Cyber 5 offline and online purchases they intend to make, according to the Mastercard SpendingPulse, which reports on national retail sales across all payment types in select markets including the U.S. and Canada.
Mastercard SpendingPulse projections
From Nov. 1 to Dec. 24, Canadian in-store sales are expected to increase 2.8% year over year (YoY), according to MasterCard. Coming off a strong post-COVID holiday season in 2022, consumer spending is expected to remain resilient this year.
“The deceleration of inflation in Canada as we head into the critical holiday season offers some respite for consumers,” says Michelle Meyer, chief economist, North America, Mastercard Economic Institute. “Consumers are expected to be smart with their holiday budgets this year by trying to stretch their dollars to their maximum potential.”
The report projects electronics sales to see the largest sector growth (3.9% year over year). That indicates consumers could be looking to update to the latest tech gadgets this holiday season. But apparel and jewelry are not as likely to top wish lists this year, with expected softening of sales in both sectors compared to last year.
Mastercard SpendingPulse expects consumers to celebrate by entertaining at home and out on the town. It expects both the restaurant and grocery sectors to experience moderate growth of 3.4% and 3.1% YoY, respectively.
“In-store experiences coupled with ongoing sales and promotions will be paramount for retailers this holiday season,” says Steve Sadove, senior advisor for Mastercard and former CEO and Chairmans of SAKS Inc. “While the convenience of online is still important, consumers are keen to physically interact with their purchases. We can expect retailers to prioritize in-store only promotions, gifts with purchase, point of purchase sales and hands-on sales staff.”
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