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Christmas is now just two weeks away and the busiest shopping day is quickly approaching in Canada.

As people deal with inflation and cost of living challenges, holiday shopping may be more subdued this year.

It will be a “slightly less frantic holiday shopping season this year,” interbank payment service Interact said in a press release.

Interact predicts Dec. 20 will be the busiest shopping day of the season.

The 25.9 million purchase transactions expected, however, represents a dip in spending volume compared to last year’s forecast of 27.8 million transactions, the release notes.

“Last-minute deals may be the strategy of choice for many Canadians looking to stretch their holiday budgets amid rising costs,” Interact said.

Interact also looked at what people will spend money on.

A quarter of transactions (25.4 per cent) are expected to be at fast food restaurants and eateries. Grocery stores and supermarkets come in second at 15 per cent, as Canadians prepare festive feasts.

“Filling up the sleigh (or minivan) takes another 10.9 per cent of transactions at gas stations,” Interact said.

All that essential spending leaves just 4.4 per cent of transactions for gifts and holiday deals at clothing and department stores, Interact notes.

Interact offered a few tips to stay in control of holiday spending:

• Create a budget and stick to a list to avoid impulse purchases, especially for holiday meals where overspending on festive treats is common.
• Focus on useful and appreciated gifts, rather than flashy or expensive items. Experiences and quality time with loved ones can be more valuable than material goods.
• Pay with your own funds using debit to track spending in real-time and avoid post-holiday debt.
• Factor in the cost of gas for holiday travel and errands. Consider a carpool or use public transportation when possible.

Lead photo: Karen Longwell

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