Reports and experts said that Canadians will spend less money on "luxury" goods and gifts this Black Friday, and will look for deals on "necessities" instead.

The holiday season is increasing across the country, as many people look forward to finding Black Friday deals. However, experts and reports say that the cost of living is the main reason why Canadians are likely to spend less this year.

For his part, Bruce Winder, a retail analyst, said in an interview with CTVNews.ca: "Consumers are a bit stingy this year, more than usual." "They have spent a considerable amount of time in the past two years after the pandemic and burned through all those financial savings … so they will be cautious."

Canadians are spending little money in all aspects, including food, shelter, and other costs that have increased over the past several years.

How much will Canadians spend?

Reports show that estimates of whether Canadians will increase or decrease their spending this Black Friday vary, with a new report issued by Boston Consulting Group (BCG), a financial consulting firm, saying Canadians increase their spending on Black Friday to an average of $415. In some markets, such as the United States, people will spend nearly $460.

The group surveyed the opinions of 7,000 people from countries around the world, including 1,017 Canadians. It shows across all sectors that consumers worldwide will exceed their 2022 spending by up to 22 percent.

Nevertheless, a Canadian report issued by Deloitte, a financial management company, indicated that shoppers will reduce their spending this holiday season.

According to the report published last month, Canadians are expected to spend 11% less per household on average this holiday season, which includes Black Friday and December.

What are Canadians buying?

Reports and experts agree that the purchasing power of some Canadians is likely to be hampered by the cost of living. Reports indicate that this factor also determines the type of items consumers will buy on Black Friday.

The BCG survey said that 70 percent of Canadian consumers plan to take advantage of deals on November 24.

The report also pointed out that just over half of Canadians (60%) will look for deals no later than November, and plan to make purchases and conduct research in advance.

However, the report found that these will not necessarily be gifts that Canadians will buy on Black Friday.

The report stated, "Canadians are now turning those moments that focused on holiday gifts into opportunities to stock up on basics."

For her part, Kathleen Polsinello, managing director and head of the Canadian system at BCG, said she believes people are waiting for price reductions.

The Deloitte report added to a similar trend in purchasing "needs" versus "wants," with the report stating that "nearly half of Canadians (48 percent) intend to purchase only what their families need this season (compared to 41 percent in 2022)."

To cover rising holiday costs, one in four Canadians plans to postpone vacations or cut grocery spending, the study indicates.

Also, according to the Boston Consulting Group report, clothing is the most popular category in Canada for shopping, with electronics coming in second.

Canadians are more likely to buy essential items from a retailer at a discounted price, the report says, and more people will choose "accessible and affordable brands."

However, data shows that younger generations plan to spend more on Black Friday, due to a luxury or higher-priced goods budget to "treat themselves to a deal."

What deals are Canadians looking for?

Sandar Myers, Canada director for Adyen, an integrated payments solutions company, said that when looking at Black Friday sales, Canadians expect personalized offers to further motivate them.

Myers also told CTVNew.ca in an interview: "It's very successful not just to offer another discount to attract people to your online store or store, but to offer something personal on top of that." "That's what gives the shopper the feeling that you really know who they are."

For example, he said an email offering a 10 percent discount along with the Black Friday deal rewards the customer for their loyalty.