The holidays are technically over and Canada’s holiday shopping trends are showing some shifts from last year. Store shelves still boast some discounted Christmas candy and holiday-themed knick-knacks while mall Christmas trees slowly start coming down.
Since the heat of the holiday shopping season is cooling off, now is a critical time to reflect on spending trends.
Visa’s Retail Spend Monitor from Visa Consulting & Analytics provides a thorough summary of Canada’s recent retail activity.
According to preliminary data, overall holiday retail spending went up 4.4% year-over-year across all forms of payment, including cash and cheque. Please note, these figures are not adjusted for inflation.
“Retailers delivered seamless shopping experiences both in stores and online, and consumers responded with enthusiasm,” said Wayne Best, Chief Economist at Visa.
“This season also marked a turning point, with artificial intelligence beginning to shape how people discover products, compare prices, and interact with offers. This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending.”
Key takeaways:
In-person shopping is king: Physical stores saw 88% of holiday payment volume. 12% was online.
E-commerce extends its reach: Online retail spending increased 7% YoY. This was largely driven by accessibility, convenience and prolonged promotions.
Global trends: Holiday spending also increased in the US by 4.2%, the UK (+3.6%), and Australia (+5.0%). This proves enduring consumer purchasing power worldwide, even despite economic hardship and trade challenges.
Spending snapshots:
Clothing & accessories: This category saw a 10% boost — a notable jump from 5.3% last year, making it Canada’s fastest growing category.
Big box shops: General merchandise stores continue to appeal to the masses with a 9% lift this year. This stands out to its 2% bump last year, showing consumers seek convenience.
Health & Wellness: Self-care continues to grow. This category saw a 5.4% lift versus 3.5% last year.
For reference, the VCA Retail Spend Monitor analyzes retail sales activity over a seven-week period beginning November 1. It relies on a subset of Visa payment network data in Canada and survey-based estimates for other payment methods.
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