Article
Will the Holiday Season Be Naughty or Nice for Retail?
November 24, 2025 4 Minute Read
It’s officially the most wonderful time of the year for retailers, with holiday spending forecast to increase by 3% in 2025.
Expect patriotism, value hunting and AI to shape the search for presents. Here’s a look at what’s in store for Canadian shoppers this holiday season.
A Bob Cratchit Christmas?
“In times like these, people are very focused on how to get a great product for a great price,” says Alex Edmison, who heads CBRE’s Canadian Retail Group.
Retailers offering good value for quality items are positioned to perform exceptionally well this holiday season. Nearly half of Canadians (46%) believe the economy will worsen in the coming year and are highly focused on value, with 78% planning to shop for the best deals, according to a Deloitte survey. Quality is just as important as price and shoppers will favour stores that provide the best of both worlds.
Holiday shoppers not looking to break the bank with their gift giving will be turning to fast fashion brands like Uniqlo, H&M and Mango, which offer quality clothing at a value price point. And discount retailers like Dollarama and Dollar Tree will be seeing customers arriving in droves in search of holiday supplies and Secret Santa ideas.
“There’s a great market for value offerings and that’s been fueling growth among discount retailers,” says Edmison. “Cost-conscious holiday shoppers will be flocking to those shops so they don’t have to blow their gift budgets.”
Choosing Canada
Supporting local retail will be a top priority for many Canadians during the holidays this year.
That’s easily accomplished with a gift from a Canadian retailer like Simons, Lululemon or Aritzia, surely to be welcomed by any fashionista on your list. The self-care enthusiasts on your list might love something from Vancouver-based skincare brand Kid Sister, which boasts bespoke, small-batch formulas.
And if you want to work off holiday calories, Sweat and Tonic, a Toronto-based boutique fitness and wellness centre, offers a variety of classes from yoga to explosive HIIT sessions, plus cozy spaces to drink coffee and connect with friends afterwards.
In Vancouver, House Concepts has four distinct studios – Run, Box, Strengthen and Stretch – each one offering a distinct set of workout classes.
If you’re in Halifax, check out the Evergreen Festival, a four-week-long winter celebration of Nova Scotian food, spirits and art on the Halifax waterfront. Local vendors will be selling festive goods like hot apple cider, mortadella sandwiches and chocolate alongside clothing and accessories from East Coast designers.
Smarter shopping with AI
For the person who is impossible to buy for, AI could save the day. Canadian shoppers are increasingly turning to artificial intelligence for gift inspiration, personalized recommendations and customer service.
Google AI released several new features for shoppers that enable them to narrow product choices and find prices that fit their budget. And AI-based virtual try-on technology has already been launched in the U.S. and will soon expand to Canada, helping shoppers envision how they’ll look in different styles.
AI is helping to take away the advantages that sellers, service providers and intermediaries have traditionally enjoyed over consumers, allowing shoppers to find the best deals and be less vulnerable to mis-selling.
“Technology is changing the way we shop and helping to enhance and simplify the process,” says Edmison. “To me that sounds like a great thing. And I’m guessing my wife will appreciate it, too.”
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