Given the current economic climate, many consumers are apprehensive this year with regard to holiday spending. Some retail analysts are reluctant to make any predictions for this December’s retail spending. But most agree that an increasing number of consumers will be looking for deep discounts this year.

In a recent study published by INTERAC®, Canada’s national debit card system provider, half of Canadians were found to have already set or are planning to set a holiday budget this year. With tight budgets, Canadians are looking for innovative ways to maximise their dollars;

• 73% indicate that they will research prices before buying
• 60% have bought early to take advantage of sales throughout the year
• 56% plan to use debit cards more often so that they only spend the money they have

Gift Cards

Several US retail chains have gone bankrupt leaving consumers with worthless gift cards. Despite some level of caution among Canadian consumers this year, gift cards remain a popular choice for holiday gifts. Gift cards are convenient and attractive to budget conscious consumers.

Rewards/Loyalty Programs

Consumers are also turning to their rewards program and this year maybe the most likely for redemption of points that they have been collecting over the past few years.

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