Canadians plan to spend less on gift cards this Christmas due to inflation: Survey
Published November 16, 2023 at 1:22 pm
If you plan to buy fewer gift cards for loved ones this holiday season because of inflation, you’re not alone.
According to findings from the 2023 Holiday Gift Card Survey conducted by technology company Givex, three-quarters (74 per cent) of Canadians surveyed say inflation will impact their gift-giving plans, an increase of nearly 9 per cent from last year.
In a news release, Givex said this sentiment exists across all provinces and income levels.
That said, the survey found that Canadians are still spending on gift cards, though not as much as last year.
According to the survey, one in five Canadians (20 per cent) plan on spending at least $200 on gift cards this holiday season (down from 27 per cent in 2022), with over half (53 per cent) of Canadians expected to spend at least $100 or more on gift cards this holiday season.
“The impact of inflation has been felt by Canadians this year, with increasing costs of living across the board,” explained Mo Chaar, chief commercial officer of Givex, in a statement.
“Our Holiday Gift Card Survey data reveals the effects of rising prices on consumer spending, and provides valuable insights into shoppers’ preferences for gift cards. As we gear up for one of the busiest times of the year for retailers and hospitality establishments, and with customers expected to spend less than in previous years, it’s more important than ever for businesses to maintain customer loyalty. Givex equips brands to make better-informed business decisions, strengthen their relationships with customers and, ultimately, increase sales.”
The survey found that inflation is impacting gift-giving plans for both lower and higher-income Canadians, with 78 per cent of those making less than $50,000 and 73 per cent of those making $100,000 or more agreeing that it will change how much they give.
The survey found that 43 per cent of respondents said they would most like to receive a gift card for necessities (such as groceries and gas) this year, up slightly from 41 per cent in 2022. Only 37 per cent of men say they would most like a gift card for necessities, compared to almost half (48 per cent) of women.
The survey also found that 52 per cent of younger respondents (18-34) would like a gift card for necessities, while just 35 per cent of those over 55 said the same. Forty-two per cent of respondents making over $100,000 would also like gift cards for necessities. Almost half (48 per cent) of those making less than $50,000 say they’d most like to receive a gift card for necessities as a gift.
The survey also found that only 6 per cent of respondents don’t like receiving gift cards and 78 per cent say buying a gift card is less stressful than choosing a physical gift.insauga's Editorial Standards and Policies advertising