As the 2023 holiday season approaches, a new survey finds that Canada’s economic backdrop of high interest rates and inflation has tempered the spending plans of three-quarters of Canadians.
Across incomes, economic inflation in Canada has triggered a damper effect on the gift-giving plans of many, according to data gathered by Toronto-based global customer engagement and business insights platform Givex for its annual Holiday Gift Card Survey.
“Our Holiday Gift Card Survey data reveals the effects of rising prices on consumer spending,” says Mo Chaar, who serves as Chief Commercial Officer of Givex, “and provides valuable insights into shoppers’ preferences for gift cards.”
On the effect of rising prices on consumer spending, “The impact of inflation has been felt by Canadians this year, with increasing costs of living across the board,” says Chaar.
With finances tight, many Canadian households are hoping for practical gifts to cover necessities. 43% of Canadians say they would most like to receive a gift card for necessities this year, according to the Angus Reid poll, up from 2022.
The Givex survey reveals that Canadians are still spending, but not as much as last year. One in five Canadians plan on spending at least $200 on gift cards this holiday season, with over half expected to spend at least $100 or more on gift cards this holiday season.
“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,” believes Chaar. “Givex equips brands to make better-informed business decisions, strengthen their relationships with customers and, ultimately, increase sales.”
And with a growing demand for digital shopping experiences, Givex recently launched customizable and animated e-gift cards that enable shoppers to add a personal touch to their gift cards with heartfelt video messages or images. Brands can have Digital Gift Cards delivered with a corporate message.
“We are thrilled to introduce this feature to Givex Ecommerce,” Chaar stated in October. “In a world where digital gifting has become an integral part of our lives, Givex takes pride in leading this transformation, consistently enhancing the user experience.”
Since 1999, Givex has provided technology solutions that cultivate connections between brands and customers.
Trading on the TSX as GIVX, shares in the Toronto fintech are up 11% in 2023.