As economic pressures mount, Canadian consumers are increasingly adopting strategic spending habits. A recent survey reveals that over three-quarters of Canadians are practicing "slow shopping," making conscious and deliberate purchasing decisions to avoid impulsive buys. Moreover, 71% are spending more time researching their purchases, while 60% are spreading out their spending.

According to a recent Angus Reid Institute poll, 46% of Canadians plan to reduce their spending this year, with only 8% intending to increase their expenditures.

Canadians are also turning to "buy now, pay later" (BNPL) options to manage their finances. A Research and Markets report from August forecasts a 14% increase in Canadian BNPL spending this year, reaching $6.7 billion.

Affirm's survey found that 48% of respondents use BNPL programs to effectively manage their budgets, while 42% are attracted to the lower interest rates. "As Canadians embrace a more mindful and value-driven approach to shopping, many are turning away from credit cards," said Wayne Pforr, Affirm's Chief Revenue Officer. "Instead, they are opting for flexible and transparent payment options, enabling them to shop responsibly and enjoy the holiday season."

Furthermore, Canadians are strategically delaying some purchases in anticipation of the federal government's GST cut, which is set to take effect on December 14th. The GST reduction encompasses a wide range of items, including many staples on holiday shopping lists such as groceries, children's toys and clothing, and video game consoles.

Dan Kelly, president of the Canadian Federation of Independent Business, has expressed on X that some business owners believe consumers will wait until the tax break begins to make purchases, leading to a more concentrated shopping season. He has also heard anecdotes of retailers fearing that consumers may return some items they've already purchased to repurchase them once the tax change takes effect.

As Canadians navigate economic uncertainties, their spending habits are evolving to prioritize value and affordability. The combination of "slow shopping" and increased reliance on BNPL options, coupled with the anticipation of the GST cut, is shaping a more strategic and cautious consumer landscape in Canada.

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