Consumers are shopping with intention this holiday season and prioritizing small and local businesses. According to a new Mastercard survey, shoppers are focused on not only giving (72 per cent) but also receiving gifts (72 per cent) that support small businesses.
“Canadians are shopping with renewed priorities this holiday season by focusing on local and small businesses, and giving gifts with meaning,” said Craig Reiff, Vice President, Consumer and Small Business Products, Open Banking at Mastercard in Canada. “As part of our ongoing efforts, Mastercard is providing small businesses in Canada with the support and tools they need to succeed.”
Mastercard pledged to bring 50 million small businesses and 25 million women entrepreneurs into the digital economy by 2025. Mastercard in Canada has also been helping small businesses access vital tools and resources through partnerships with Digital Main Street, StartUp Canada and others.
Survey results also showed that Boomers (74 per cent), Gen Z (72 per cent) and Gen X (70 per cent) state they plan to be more conscious about where they shop this holiday season, compared to 61 per cent of Millennials. Boomers and Gen Z are the most likely to prioritize brands that match their personal values (74 per cent), compared to Millennials (66 per cent). More broadly, Gen Z is most likely to support minority businesses with 68 per cent planning to support black-owned businesses and 73 per cent planning to support women-owned businesses.
In addition to supporting local and small businesses, many Canadians are shopping with meaning. Almost two thirds (63 per cent) of shoppers say they are more likely to buy a gift that gives back to a good cause and 17 per cent of shoppers would like a gift that gives back to a good cause this year, more so than in the past.
Additional findings from the new Mastercard study show:
Shopping concerns around Covid-19 decrease, but online shopping is here to stay: This year, 76 per cent of shoppers say they are likely to shop online, however, shoppers are hitting stores more, with 81 per cent suggesting they are still likely to visit a retailer in person. For consumers choosing to shop online, Click to Pay with Mastercard can help make the checkout experience simple and more secure.
Gen Z and Millennials feel the gift giving burden: Gen Z (52 per cent) and Millennials (45 per cent) expect holiday shopping to be more stressful this year, likely because Gen Z (50 per cent) and Millennials (39 per cent) have more people on their list this year while Boomers (78 per cent) have less.
Gift cards top wish lists: Gift cards are the top item on shoppers’ own wish lists (44 per cent) and over half (54 per cent) of shoppers say they are more likely to buy their loved ones a gift card or prepaid card rather than a physical or experiential gift this year.
Useful or sentimental make for the best gift: Whether giving or receiving gifts this holiday season, usefulness is the most important element of a gift (35 per cent for gifts given, 33 per cent for gifts received). The thought or sentiment behind a gift is a close second (30 per cent for gifts given, 27 per cent for gifts received).