TORONTO — Holiday shopping has begun in earnest at the Toronto Eaton Centre, where the towering Christmas tree is already drawing crowds. But even as the festive season ramps up, many Canadians say they are tightening their budgets this year as concerns about inflation, rising costs and potential tariff impacts weigh heavily on household finances.
Shoppers browsing early seasonal displays say they are adopting a more cautious approach. Laura Pucci, who works at the mall, said she has already begun picking up gifts but is sticking to a stricter budget. “Things are really expensive now, so I’m cutting back a little, budgeting well, and making sure I buy things on Black Friday,” she said.
Her experience echoes findings from a new BMO survey, which reports that three in five Canadians are modifying their holiday spending plans. Conducted between September 3 and October 11 among more than 2,500 participants, the survey found that 41 per cent plan to scale back spending, while 15 per cent are budgeting more in anticipation of potential price increases. A full 25 per cent said they started shopping early to avoid possible tariff-related hikes.
Canadians are expected to spend an average of $2,310 this season, covering gifts, travel, dining and décor. Notably, 37 per cent say they are shifting to items less affected by tariffs, including Canadian-made goods.
Tony Tintinalli, head of specialized sales at BMO, said the economic mood remains cautious. “There’s this general concern from Canadians of needing to be fiscally responsible over the holidays because there’s still uncertainty about where things are headed next year,” he said. He added that travel, in particular, may see a decline as people scale back. “We’ve already seen fewer people travelling to the U.S., and I think a lot of people won’t be going away.”
At the Eaton Centre, several shoppers described scaling back significantly — or opting out entirely. Full-time student Katelyn Robertson, who works three jobs, said spending is not an option. “I have to work a lot to afford rent, so spending money is not on the table,” she said, noting her tuition expenses also take priority.
Others are starting early but maintaining a tighter hold on their budgets. Toronto resident Jennifer Leithead said she hopes to save for a January trip but is struck by how much prices have risen. “I’m spending a lot less on presents this year,” she said. Theresa Smolinski, meanwhile, said she plans to prioritize gifts for her grandson but admits that higher prices require more comparison shopping. “You have to look around a bit more than before,” she said. “But I’m making it work.”
Additional stress is reflected in a separate Harris and Partners survey, which found 54 per cent of Canadians feel anxious about affording the holidays, while 61 per cent say they are not financially prepared.
As for advice, Tintinalli suggests planning ahead and sticking firmly to a budget. “You can still be mindful and fiscally responsible if you do a bit of planning,” he said.