Canadians cut spending on Boxing Day sales despite an uptick in number of sales

An analysis of retail sales data from ecommerce marketing platform Omnisend has revealed a notable shift in consumer behavior during the Boxing Day sales period, with Canadians cutting spending despite an increase in transactions. 

Retailers using Omnisend saw a 32% year-on-year (YoY) increase in the number of online transactions between the 25th and 31st of December. However, the total amount spent has fallen by 3.5% compared to the same period last year. 

The data highlights the persistent impact of cost-of-living pressures on shoppers, with many opting to spend less per transaction while still seeking out deals. The trend underscores a growing consumer focus on value amidst ongoing economic challenges.

Omnisend’s analysis also points to a significant change in how and when Canadians engage with Boxing Day sales. Traditionally associated with post-Christmas in-store bargains, the rise of ecommerce and early sale launches has transformed the shopping landscape. Increasingly, retailers are unveiling their Boxing Day offers before Christmas has started and many are also choosing to launch on Christmas Day itself.

This early sales strategy appears to be resonating with consumers. Data shows that 1 pm on Christmas Day has become the peak time for shoppers to begin browsing for the best deals after they’ve finished their lunch and have a break until Christmas dinner. 

Greg Zakowicz, senior ecommerce expert at Omnisend, comments: “For some, this has been the most expensive Christmas to date, leading many households to scale back their spending and avoid incurring debt.

“As a result of budgets being cut, it would be surprising to see a significant increase in people prioritizing sale shopping for themselves over Christmas. 

“While spending may be down, it is not all doom and gloom for online retailers which have seen a significant boost in the number of transactions over the Boxing Day sales period. 

“It remains to be seen whether this will be reflected in a fall in the amount of in-store shopping taking place.

“Retailers need to focus on building trust and providing genuine value to maintain customer loyalty in this challenging economic climate.

“The move towards earlier sales and online-first strategies is a smart adaptation to changing consumer habits. However, it’s crucial for retailers to balance this with personalized marketing and a focus on quality. 

“Consumers are looking for retailers that align with their financial priorities while still delivering a seamless shopping experience.”