Credit card

Retail Therapy on Most Holiday Shopping Lists: Credit Card

TORONTO, Nov. 22, 2021 (GLOBE NEWSWIRE) – Consumers and small business owners are more optimistic about holiday shopping leading up to Black Friday, according to new survey data * from Equifax Canada. Equifax consumer data also suggests optimism is on the rise with average credit card spending trending up 17.6% in the third quarter of 2021 compared to the third quarter of 2020. Spending Monthly credit card averages exceeded $ 1,400 this quarter, the highest in three years. .

“Credit cards have been the slowest product to recover from the pandemic and are showing a similar trend in other countries as well,” said Rebecca Oakes, associate vice president of advanced analytics at Equifax Canada. “Seasonality, pent-up demand and people returning to travel combined with increased inflation can be attributed to higher spending behavior. We are also likely to see a small seasonal quarter-over-quarter increase in credit card balance and usage. ”

Looking forward to holiday shopping, two-thirds of survey respondents (64%) plan to spend about the same as last year and 9% plan to spend more. These numbers are up substantially from 2020, when 58% said they would spend as much and 4% said they would spend more. Only 25% say they will spend less this year, which is significantly lower than 33% in 2020.

Canadians aged 18 to 34 are much more likely than those aged 35 and over to say they will shop more during the holiday season (17% vs. 6%), as are those with children under the age of 18. 18 at home compared to those with children under 18 at home. 35 and over without young children (15% vs. 7%).

“Retailers of all sizes can take pride in the fact that most consumers plan to purchase plenty of holiday gifts for their friends and family,” Oakes said. “This is another indication that we are moving towards the financial impacts of the pandemic. However, it is imperative to remind people to stay within their financial limits and prepare a realistic budget to avoid unwanted financial stress in the New Year.

Fortunately, the poll found that 57 percent of Canadians budget for holiday shopping. Additionally, the survey found that significantly more, 70 percent, use their credit cards more often than cash for purchases compared to 2020. One-third (31 percent) also indicated that they use more. of a credit card for vacation purchases and 26 percent carry the most credit card debt in a month while on vacation.

WHEN AND WHERE PEOPLE THINK TO BUY
Black Friday Shopping sales are predicted for 49% of survey respondents, 44% will buy Cyber ​​Monday sales and 34% plan to buy Small Business sales on Saturday. While more than half (56%) of holiday shoppers say they are more likely to shop online this year due to the pandemic, half (51%) say they plan to buy more in store this holiday season to support local businesses. The number of online purchases fell 9 percent from last year.

SMALL BUSINESS PLANS FOR HOLIDAY SHOPPERS
Equifax Canada also conducted a survey ** of over 300 small business owners, 39 percent of whom said they were just as confident in their business looking back on the holiday season last year and 36 percent said they were just as confident in their business looking back on last year’s holiday season and 36 percent said they were just as confident in their business. hundred said they were more confident for this season. Only 20 percent said they were less confident.

“Small business owners in particular have more reason to be optimistic compared to last year when most of their businesses were closed due to government lockdowns,” said Jeff Brown, chief small and medium-sized enterprises, Equifax Canada. “There is good reason to believe they will do much better, especially those in the food and beverage or hospitality industries. “

More than half of companies surveyed (56%) said they would take extra steps during the holiday season to attract business, including offering sales / discounts (25%), investing more in social media ( 21%) or by offering delivery (16 percent). Four in ten companies (38%) surveyed do not plan anything different to attract customers as the holidays approach. Interestingly, companies that have been in business for more than 6 years are much more likely to report that they not plan to do something different to attract more businesses (47 percent vs. 18 percent of those who have been in business for less than 6 years). Newer businesses are more likely to report that customers can support them during the holiday season by sharing / posting information about their business on social media (71% vs. 28% of those who have been in business for more than a year).

“Small business owners certainly deserve a bit of a good mood this holiday season,” Brown added.

* An online survey of 1,500 Canadians was conducted between September 16 and 24, 2021, using Leger’s online panel. The margin of error for this study was +/- 2.5%, 19 times out of 20.

** Equifax Canada Co. commissioned Leger to conduct an online survey of 300 owners / managers / decision-makers of small (255) and medium (45) Canadian companies in the food, construction, retail and retail sectors. retail and travel. It was carried out between August 20 and 29, 2021, using Léger’s online panel.

About Equifax
At Equifax (NYSE: EFX), we believe knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employees and government agencies to make critical decisions with greater confidence. Our unique blend of differentiated data, analytics and cloud technologies generate insights to make decisions to get people moving. Based in Atlanta and supported by more than 12,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe and the Asia-Pacific region. For more information visit Equifax.ca and follow the company’s news on LinkedIn and Twitter.

Media contacts:


Source link