Cautious Consumers in an Uncertain Economy
Canadians are entering the 2025 holiday season with mixed feelings – eager for deals but wary of overspending. Economic crosswinds are a big factor. Rising prices and higher interest rates throughout 2025 have stretched household budgets, and shoppers are responding by planning to spend more carefully. In fact, the Bank of Canada recently noted consumers are “cautious” heading into the holidays, and credit card data show spending is already slowing down . Unemployment has crept up to around 7%, with youth joblessness double that rate, and even moderate inflation (about 2.4% year-over-year as of September) is enough to make buyers think twice . It’s no surprise, then, that many Canadians intend to pull back on non essentials this Black Friday, focusing on value and necessity.
Surveys confirm this wariness. In one poll by BMO, 41% of Canadians said they’re cutting back on holidaygift spending due to economic concerns . Fully 80% told PwC over the summer that they planned tospend about 10% less overall this holiday season than last year . The message is clear: shoppers stillwant to celebrate, but they’re keeping a closer eye on their wallets. “In the face of rising costs and declining consumer confidence, it’s not surprising that consumers are planning to spend less this holiday season,” noted PwC’s holiday outlook report . Canadians are prioritizing must-haves over nice-to-haves, trimming things like decorations, travel and dining out, and seeking the best deals for the gifts they do buy
At the same time, there’s a determination not to forego the holidays altogether. Consumers are simply finding smarter ways to stretch every dollar. Many are delaying big purchases until Black Friday sales hit, or shopping earlier in the season to spread out expenses. Some 25% of Canadians said they actually started their holiday shopping back in October to beat potential price increases and product shortages . Others are budgeting strictly and ditching credit cards in favour of debit or cash to avoid piling up debt. The overall sentiment is cautious but hopeful – Canadians still want to score great deals and treat their families, they’re just being shrewd about how they do it.
Inflation Drives Value-Conscious Buying Decisions
Inflation has left its mark on Black Friday 2025. Even though price increases have moderated compared to the peaks of a couple years ago, the cost of living remains high, and essentials like food and fuel are taking a bigger bite out of monthly budgets. This has made shoppers extremely value-conscious. Canadians are laser-focused on sales, discounts and getting the most for their money. According to a Deloitte survey, 78% of consumers said finding the best deals is a top priority this season . In practice, that means waiting for Black Friday promotions, comparing prices, and refusing to pay full price if they can help it.
Retailers have noticed a domino effect from inflation on buyer behavior. When everything costs more, shoppers become choosier about what’s worth their dollars. Retail Council of Canada data shows 85% of Canadians now wait for an item to go on sale before buying, and 80% will actively compare prices online to ensure they’re getting the best possible deal . If a favourite brand is too expensive, many shoppers will switch – nearly half of Canadians (49%) say they’ll drop their go-to brand if a competitor offers a better price . Loyalty goes out the window when budgets are tight, and price becomes the driving force.
Inflation is also pushing people to trim the fat from their holiday lists. In the BMO survey, majorities of Canadians said they plan to scale back spending on non-essentials like décor, travel, alcohol, and even toys this year . Instead, those dollars are being reallocated toward necessities and meaningful gifts. Bigticket purchases might be delayed or downsized unless a steep Black Friday discount brings them within reach. The mentality for 2025 is “deal or no deal.” Shoppers are ready to pounce on genuine bargains, but they’re resisting impulse buys at full price.
Interestingly, inflation’s squeeze is also making shoppers more resourceful. Many are using strategies likebuying second-hand items or refurbished products to save money – 44% of Canadians even said theywould consider gifting second-hand items for affordability and uniqueness . Others are cashing inloyalty points, couponing, and stacking promotions to cut costs. Retail experts point out that loyalty programs and cashback offers can help offset higher prices if used effectively . Every dollar counts, and Canadians are making those dollars work harder in the face of inflation. As one retail CEO put it, consumers still want to celebrate, but now they “want thoughtful gifts, transparent pricing, and genuine value
Canadian Retailers Roll Out Early and Extended Sales
Retail businesses in Canada have felt the Black Friday pressure mounting for weeks. With shoppers hesitant to overspend, stores are pulling out all the stops to entice buying. Deals started dropping earlier than ever this year – as early as late October and early November – transforming Black “Friday” into a weeks-long marathon of sales. Retailers large and small are promoting “early Black Friday” discounts to capture sales from those early-bird shoppers. By mid-November, many major retailers (from electronics chains to fashion brands) were already touting Black Friday pricing to get eager consumers through the (virtual or physical) door.
This trend of spreading out the sales is a direct response to consumer behavior. Canadians are treating Black Friday as the kickoff to the holiday shopping season, and retailers know it . “Black Friday is now the moment Canadians plan around, but their shopping stretches well beyond the day itself,” explains the Retail Council of Canada . Stores have adapted by extending promotions well past Black Friday into Cyber Monday and early December, trying to keep the momentum going. The goal is to catch those shoppers who wait for the big day, but also those who continue bargain-hunting for weeks afterward. In 2025, Black Friday isn’t just a day – it’s an anchor for an entire season of sales.
Retailers are also experimenting with new tactics to appeal to deal-seekers. Many have ramped up online promotions and price-match guarantees, knowing that customers are comparing prices across the internet. There’s a noticeable emphasis on “genuine” deals versus gimmicks – with inflation weary shoppers, any whiff of a fake markdown (where a price was inflated only to be “cut”) could backfire. Stores are highlighting real savings and “transparent pricing” to build trust . Some businesses that never used to participate in Black Friday are jumping in for the first time, from small local boutiques to service providers, feeling the need to offer promotions to draw budget-conscious Canadians .
Early planning by consumers has pushed retailers to adapt their marketing calendars. With more than half of shoppers researching gifts 1–3 weeks before Black Friday , companies began releasing flyers and online previews of Black Friday deals well in advance. This year saw a flurry of email newsletters and social media teasers in early November, essentially urging consumers to “buy now, don’t wait.” Big-box stores like Costco even adjusted their in-store layouts – for example, focusing less on holiday décor and toys to make room for necessities like groceries and clothing that shoppers are prioritizing . It’s all about meeting consumers where they’re at in 2025: value-focused, informed, and somewhat anxious. The retailers that succeed will be the ones offering true deals and a convenient experience, whether online or in-store.
Local Loyalty and Changing Buyer Priorities
One striking trend in Canada’s Black Friday landscape is a surge in “shop local” sentiment. It’s not justhyperbole – multiple surveys indicate that Canadians are increasingly interested in buying from Canadian and locally owned businesses during Black Friday, even if it means paying a bit more. In one survey by Square and Leger, 62% of Black Friday shoppers said they plan to purchase exclusively from Canadian or local retailers this year . Similarly, Deloitte found 73% of Canadians prefer to support local or Canadian-owned businesses for their holiday shopping . This local-first mindset marks a shift from the days when Black Friday was all about big American chains and cross-border bargains.
What’s driving this homegrown shopping movement? Part of it is patriotic spirit and community support –after years of pandemic challenges, many consumers want their spending to benefit local shopkeepers and
the Canadian economy. But there’s also an element of consumer backlash against U.S. retailers and tariffs. Trade tensions in recent years (from steel tariffs to “Buy American” policies) have left a bad taste. In fact, 37% of Canadians told BMO they’re actively avoiding products hit by U.S. tariffs, opting for Canadianmade alternatives . The Square survey pointed to lingering frustration with the U.S., noting that some Canadians are effectively boycotting American brands due to earlier tariff fights and political rhetoric . One outcome is the Buy Canadian movement possibly peaking this holiday season – an Ipsos poll even found 58% have gone out of their way to avoid U.S. products and trips .
For retailers, this trend has important implications. Canadian businesses are highlighting “Made in Canada” labels and local origins in their marketing to capitalize on the sentiment. However, they can’t rely on patriotism alone; price and convenience still reign for many shoppers. Almost half of consumers are willing to pay more for Canadian-made goods, but only to a point . Value is still the trump card – a survey by Retail Council of Canada showed that while 86% plan to shop close to home and 84% will look for Canadian-made products, price remains the #1 decision driver overall . In other words, shoppers love the idea of supporting local, but if a local item is far costlier, many will chase the deal elsewhere. Retailers are learning to balance the “shop local” appeal with competitive pricing. Those who strike the right mix– perhaps by offering Black Friday discounts on local products – stand to gain both sales and goodwill.
The local loyalty trend also extends to how Canadians view Black Friday itself. The concept, imported from the U.S., has been thoroughly Canadianized in 2025. It’s not just about scoring a cheap TV; it’s about finding value in a way that aligns with Canadian values. That might mean buying from a neighbourhood shop in Toronto or Vancouver, seeking out Canadian brands online, or choosing a product because it supportsdomestic jobs. Even as international giants like Amazon and Walmart remain hugely popular (Amazon is visited by 82% of online shoppers in Canada, after all), there is a conscious effort by many to keep holiday spending within Canada’s borders . This shift is a silver lining for local businesses, giving them a
chance to compete in the year’s biggest shopping event by emphasizing personalized service, community connection, and unique offerings that big-box retailers can’t match.
Savvy Strategies Shoppers Use to Snag Deals
With caution in the air and deals everywhere, Canadian consumers have become incredibly savvy shoppers this Black Friday. It’s no longer enough to simply browse a flyer and hit the mall; many buyers treat deal-hunting like a skill to be perfected. Here are some of the key strategies shoppers are using in 2025 to maximize savings:
- Research and Compare: Shoppers are doing their homework. Over 50% of Canadians beginresearching Black Friday buys 1–3 weeks in advance, comparing product reviews and prices . Roughly 80% check prices online across multiple stores before pulling the trigger . Price comparison apps and websites are popular tools, ensuring that once Black Friday hits, they know exactly which retailer offers the best value.
- Wait for the Right Moment: Patience is paying off. A whopping 85% of consumers hold off on purchases until sales hit . Rather than succumb to early temptations, they create wish lists and watch items until Black Friday or Cyber Monday discounts appear. This disciplined approach means many shoppers walk away with 20%, 30%, even 50% off items they might have otherwise bought at
full price. (Of course, the risk is items selling out – which is why some started shopping early for high-demand gifts.) - Stack Multiple Deals: Canadians are stacking deals like never before. They combine retailer promotions with coupon codes, cashback offers, and loyalty point redemptions to squeeze extra savings out of each purchase. 60% make sure to use all available coupons and discount codes when shopping Black Friday sales . For instance, a shopper might use a store’s 10% off Black Friday coupon, pay with a cashback credit card, and earn loyalty points on the purchase – triple dipping on incentives. It takes planning, but the payoff can be significant.
- Leverage Loyalty Programs: Those points and rewards programs you’ve been saving up are coming in handy. Retail experts say loyalty programs, if used wisely, can shave a nice chunk off holiday costs . Many Canadians are cashing in credit card rewards, using store membership discounts, or even exchanging loyalty points for gift cards to use on Black Friday. These tactics effectively provide “free money” to spend, which helps offset the sting of higher prices. Just remember to read the fine print on any points redemption or price-match policy to get the full benefit.
- Embrace Second-Hand and Resale: A growing number of shoppers are turning to second-hand platforms to find deals beyond traditional retail. About 23% of Canadians report using resale sites like Facebook Marketplace, Kijiji or eBay more frequently to score holiday bargains . Whether it’s a gently used game console or a vintage designer accessory, buying second-hand can save money and even yield unique gifts. This year, some Canadians are comfortable wrapping a thrifted find as a present – especially with sustainability and budget in mind.
- Budget and Plan: Perhaps the savviest strategy of all is setting a firm budget and shopping list before diving into the deals. Many Canadians are planning exactly what they need to buy and how much they can afford, then doing their Black Friday shopping with that roadmap in hand. This helps avoid the trap of overspending just because something is on sale. It’s worth noting that 46% of shoppers admit sales sometimes lead them to spend more than intended . Having a plan
(and maybe a trusted friend to remind you of it) can keep those impulse buys in check when the adrenaline of a flash sale kicks in.
By deploying these strategies, Canadian shoppers are making Black Friday work for them, rather than the other way around. It’s a more intentional, calculated approach to holiday shopping. “Canadians aren’t just bargain-hunting; they’re reshaping how they shop,” observes the CEO of research firm Vividata . The modern Black Friday experience involves blending online and in-store efforts, using social media and email alerts to discover deals, and generally treating shopping like a mission. The result? Even in a challenging economy, shoppers are finding ways to check off their gift lists without breaking the bank.
Final Takeaways: A New Black Friday Balance
Black Friday 2025 in Canada is a study in contrasts. Consumers are guarded, yet excited; price-sensitive, yet ready to pounce on the right deal. Retailers are optimistic for sales, yet cannot rely on the freespending frenzies of years past – they’ve had to get creative and customer-focused. A few key takeaways stand out from this year’s trends:
- Caution Meets Celebration: Canadians are mindful of economic challenges (from inflation to tariffs) and plan to spend a bit less, but they still intend to celebrate the season. The focus is on quality over quantity – finding meaningful gifts at prices that make sense .
- Value is King: Whether it’s waiting for the Black Friday doorbusters, hunting down coupon codes, or switching to cheaper brands, shoppers in 2025 are chasing value aggressively. Deals dictate decisions, more so than brand loyalty or store loyalty in many cases . Retailers that offer true bargains are earning the business.
- Adaptability of Retailers: Canadian businesses have shown agility by launching early sales, extending promotions, and highlighting local products. Even those new to Black Friday are participating to stay competitive . Customer experience improvements – like easier online shopping, price matching, and tech-driven personalization – are helping stores stand out.
- Local Shopping Surge: A notable slice of shoppers are prioritizing Canadian-made and locally sold goods, turning Black Friday into an opportunity to support homegrown businesses. This “shop Canadian” trend is fueled partly by patriotism and pushback against U.S. tariffs . Still, local retailers must deliver on value to convert this goodwill into sales .
- Smart Shoppers Rule: Perhaps the defining feature of Black Friday 2025 is the rise of the ultrasavvy Canadian shopper. From meticulous pre-planning to leveraging every available deal and technology, consumers have upped their game. They’re stretching dollars, and they’re more aware of pitfalls like scam websites or misleading promos. In short, shoppers have learned how to “game” Black Friday to their advantage.
For anyone feeling the strain of holiday costs, remember that you’re not alone in adjusting your approach. Canadians nationwide are proving that with the right strategies, it’s possible to enjoy the thrill of Black Friday without financial regret. And if you do need a little extra help in your budget, there are resources out there. For example, if you require a short-term financial boost to seize a great deal or manage year-end expenses, you might consider exploring safe options like a small personal loan – platforms like CashCowboy allow you to apply now for a quick loan (just be sure to borrow responsibly and have a repayment plan).
Sources
- Retailers feel Black Friday pressure as Canadians expected to tighten their spending | Unpublished
- Canadians say they’ll spend less, shop earlier for the holidays: BMO – National | Globalnews.ca
- 2025 Canadian holiday outlook | PwC Canada
- Deloitte Canada’s Holiday Retail Outlook Shows Spending Expected to Rise by 3% | Deloitte Canada
- Black Friday Spending Trends for Canadian Shoppers
- New Insights from Vividata: How Canadians Shop Black Friday
- Most Canadians shopping Black Friday sales plan to ignore American businesses – Toronto Life
