Givex Survey Finds Inflation Will Impact the Gift-Giving Plans of 68% of Canadians This Holiday Season
The Toronto-based global fintech company released the results of its 2022 Holiday Gift Card Survey in partnership with the Angus Reid Institute. The survey sampled over 1,500 Canadians across all provinces to gain insights into their holiday gift-giving plans and gift-card spending habits.
The findings highlight the impact inflation will have on Canadians’ holiday spending this year, with over two-thirds (68%) of Canadians reporting that inflation will impact their plans to give gifts. Supporting this sentiment, 41% of respondents said they would most like to receive a gift card for necessities such as groceries and gas this holiday season.
“This year, Canadians have felt the impact of inflation with rising costs at grocery stores, housing costs, and at the pump,” said Mo Chaar, Chief Commercial Officer of Givex, “The data from our survey reflects the impacts of the rising cost of goods and offers key insights into the incentives of shoppers ahead of the industry’s busiest time of year. As shoppers turn to gift cards to lessen their stress this holiday season, Givex provides retailers with the critical infrastructure to ensure a smooth experience to serve their customers better.”
Key findings from the survey include:
- When asked if inflation has impacted gift-giving plans this holiday season, 68% of Canadians agreed.
- Canadians want to take advantage of deals. When asked about what kind of promotions would increase the likelihood of purchasing a gift card, more than half (53%) of respondents said they would be more likely to purchase a gift card this holiday season with an offer for a discounted card (such as 20% off $100).
- Despite financial challenges, over one quarter (27%) of Canadians plan on spending $200 or more on gift cards this holiday season, with 61% expecting to spend at least $100.
- When asked what type of gift card Canadians would most like to receive as a gift this holiday season, the top choices were credit card gift cards (50%), restaurant gift cards (41%) and necessities (41%). Other picks include:
- Retail gift card (preferred by 38% of respondents)
- Travel gift card (preferred by 14% of respondents)
- Approximately four in ten Canadians would most like to receive a gift card for necessities such as a supermarket or gas card this year.
- Atlantic Canadians were most likely to report this, with 57% saying they would most like to receive a gift card for necessities. On the flip side, only 35% of Quebecers said the same.
- Slightly over one-third (35%) of men say they would most like a gift card for necessities, compared to almost half (47%) of women.
- Nearly half (48%) of younger people (aged 18-34) say they would most like to receive a gift card for necessities as a gift, compared to just over one-third (34%) of those who are aged 55 and up.
- When asked about primary incentives for purchasing gift cards this holiday season, more than three-quarters (79%) of respondents said purchasing a gift card is less stressful than buying a physical gift. Of note, other incentives include:
- 54% of consumers reported purchasing gift cards when they wanted to let the recipient choose their own gift.
- Half (50%) of Canadians say their primary incentive for purchasing a gift card is not knowing what to gift the recipient.
High inflation is expected to impact many Canadians this holiday season. Gift cards and promotions can alleviate stress and provide some financial relief for consumers, and they will play a pivotal role in the future of Canadian holiday spending. These findings highlight spending patterns among the general population and enable businesses to make strategic decisions that can impact their bottom line during one of the busiest times of the year.