TORONTO — Lisa Pozin, the owner of Giving Gifts, two gift shops located in Vancouver, observed a notable shift in consumer behavior earlier this year. With customers increasingly inclined to buy Canadian products due to ongoing trade tensions with the United States, many shoppers engaged enthusiastically in patriotic shopping. Pozin noted, "It was the first thing on their mind," highlighting their eagerness to find Canadian-made items, even scrutinizing product packaging to confirm its origin.
However, as the political climate surrounding tariffs drags on, there appears to be a regression in this buy Canadian fervor. Pozin remarked that while customers still appreciate domestic goods, many are no longer as diligent in checking product origins, indicating a shift in priorities where price and convenience may triumph over nationalism as the cost of living continues to rise.
The upcoming holiday season is expected to be a crucial test of consumer commitment to supporting Canadian businesses amid evolving shopping habits. Before the holiday shopping frenzy began, research revealed a strong intention among Canadians to support local brands. The Business Development Bank of Canada forecasted that nearly 60 percent of the average $943 Canadians plan to spend on holiday shopping this year would go towards domestic products and services.
Additionally, a Deloitte Canada survey conducted from August 27 to September 5 highlighted that 73 percent of respondents preferred purchasing from local or Canadian-owned businesses, while 56 percent aimed to support neighborhood or small businesses. Despite this enthusiasm, Chelsee Pettit, who manages Aaniin Retail Inc., a vendor of Indigenous goods in Toronto's Eaton Centre, pointed out a disconnect between intention and action. "Some people, they just don’t do it, but they’ll talk about it," she explained, noting that spoken support doesn’t always translate into actual purchases.
Supporting her observations, data from Statistics Canada indicated that from April 1 to November 5, only 13 percent of companies reported an increase in sales for Canadian products. In contrast, a staggering 68.2 percent did not see any rise in sales for domestic items, while 18.5 percent remained uncertain about the impact of consumer preferences.
This ambivalence has been further illustrated by anecdotal evidence from various retailers. Last month, Loblaw Companies Ltd. publicly acknowledged that many of its customers reverted to purchasing U.S. products after Canadian counter-tariffs on American imports were lifted. Marty Weintraub, the national retail leader at Deloitte Canada, labeled this phenomenon the "say-do gap," noting the disparity between customers’ stated intentions and their purchasing decisions at the cash register. He speculated that increasing financial pressures lead consumers to prioritize affordability over patriotism.
Adding to this complexity of decision-making, convenience also plays a crucial role in consumer behavior. Pozin commented that if an out-of-country product is easier to acquire or closer to a shopper's home, they often forgo the search for Canadian alternatives. "Convenience outweighs anything — and delivery," she stated.
Brand preference emerges as another influential factor in consumer choices. Sam Care, owner of Toronto's Playful Minds toy shop, observed that children often demand specific products, leading families to indulge their preferences, even if it means purchasing items from abroad. "There are Legos coming from Mexico, but we definitely get it from the United States, and not one person has ever said anything about that," Care remarked, noting Lego remains a top-selling item at her store.
Both Pozin and Care agreed that while customers may not be actively seeking Canadian-made items like they once were, they still feel that patronizing local, independent businesses is a positive choice. Care concluded, "They don’t care as long as small businesses are succeeding."
