TORONTO – According to a new report released by Visa Canada, Canadians seem to be increasing their expenditure during the 2025 holiday season. Preliminary data from the digital payments company indicates a year-over-year rise in holiday retail spending by 4.4 percent across all payment types, which includes cash and cheques.
The report shows that a significant portion of this spending, 88 percent, occurred in brick-and-mortar stores, while only 12 percent came from online shopping. This trend highlights the continued importance of physical retail locations, even as e-commerce grows steadily.
Furthermore, the findings suggest that Canadians exhibited greater spending on clothing and accessories compared to the previous year. In addition, one-stop shopping destinations emerged as the preferred choice for consumers seeking convenience during their holiday shopping. These shopping venues cater to a variety of needs, allowing shoppers to make their purchases in a single stop, further enhancing the shopping experience.
Visa's chief economist, Wayne Best, noted that this season marks a significant shift in consumer behavior, influenced by the rise of artificial intelligence. He explained that AI technologies have begun to change the way consumers discover products, compare prices, and engage with offers. This transformation is leading to a more informed and intentional shopping experience, as consumers become adept at ensuring they maximize their spending power.
Best's observations reflect a broader trend wherein consumers are increasingly utilizing digital tools and resources before making purchase decisions, which ultimately contributes to their overall spending patterns. As a result, Canadians are not only spending more this holiday season but are also doing so with a heightened sense of awareness regarding their financial choices.
This report highlights the evolving landscape of retail in Canada, painting a picture of a nation that balances traditional shopping experiences with modern technological advancements. The findings from Visa Canada are crucial for retailers looking to adapt to these changing consumer behaviors and preferences.
In conclusion, the data provided by Visa Canada offers valuable insights into the spending habits of Canadians during the 2025 holiday season. It underscores the importance of in-store shopping, the rising influence of AI in consumer decision-making, and the continuing preference for convenience among shoppers. Retailers may need to consider these trends as they strategize for future sales and customer engagement efforts.
