Canadian consumers show signs of resilience: Deloitte report

A new study suggests Canadians are using greater economic caution when it comes to Christmas spending this year.

Canadian consumers are showing signs of resilience heading into 2026, according to a new report from Deloitte.

The firm’s annual retail outlook finds spending is up to two per cent this year, a change driven partly by inflation but also by shoppers who are proving more adaptable than expected.

Shauna Conway, National Retail Sector Leader at Deloitte, says this year’s findings mark a shift from previous reports. “This year is a bit different than previous years,” she said. “It’s partially due to Canadians being more resilient than we expected.”

The report highlights that inflation remains a key factor shaping household budgets, Canadian shoppers are demonstrating a stronger ability to adapt to higher costs and economic uncertainty.

Conway says the outlook shows that despite ongoing pressures, people are finding ways to balance their financial priorities. “We were expecting to see a much softer result,” she said. “But what we’re actually seeing is Canadian being much more intentional with how they spend, focusing on value, on essentials and on experiences that matter to them.”

According to Deloitte, many consumers are continuing to cut back on discretionary purchases, but they are spending more thoughtfully on items tied to daily life and personal well-being. Retailers, the firm notes, are being challenged to adjust pricing strategies and improve customers loyalty programs to meet these shifting expectations.

“Retailers have to be creative,” Conway added. “Consumers are smarter and more deliberate. They’re researching before they buy, comparing prices and making sure they’re getting real value for their money.”

Deloitte’s report identifies several trends shaping the year ahead: a continued emphasis on value-driven shopping, growth in digital retail channels and cautious optimism among younger consumers.

The firm says Canadian retailers who invest in personalized digital experiences and transparent pricing are best positioned to capture this evolving market.

Despite persistent affordability concerns, Conway says the broader takeaway from this year’s outlook is encouraging. “Canadians are finding ways to make it work,” she said. “They’re adapting, they’re resilient, and that’s something we didn’t fully expect to see this soon.”

With only three months left in the year, Deloitte predicts that consumer confidence will remain fragile but steady, suggesting a slow and measured path toward recovery in Canada’s retail landscape.