Holiday Spending Outlook For 2004

Toronto, ON -According to a new study conducted by Ipsos-Reid on behalf of the Retail Council of Canada, 78% of Canadians indicate they expect to spend the same (60%) or more (18%) on gifts and other expenditures than they did last year during the upcoming holiday season. One in five (21%) indicate that they will likely spend less than they did last year.

Further, the average expected holiday spending on gifts and other expenditures such as clothing, travel, beauty services, food, drink, or entertainment is $991 per person. Specifically, Canadian gift givers expect to spend an average of $547 on gifts this year and an average of $444 in areas other than gifts such as clothing, travel, beauty services, food and drink, or entertainment.

These are the findings of an Ipsos-Reid/Retail Council of Canada poll conducted from November 5th to 7th, 2004. For the survey, a representative randomly selected sample of 1002 adult Canadians was interviewed by telephone. With a sample of this size, the results are considered accurate to within 1773.1 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Thinking about all of the spending they will be doing this holiday season, including gifts and other expenditures, in comparison to the actual spending they did last year, most Canadians (60%) think they will be spending the same this year as last. Two in ten (21%) think they will be spending less, while 18% say they will be spending more. The net difference between those who expect to spend less and those who expect to spend more than last year is -3%.

• Residents of Saskatchewan/Manitoba (68%) are most likely to say they will spend the same amount, followed by those in Quebec (63%), Atlantic Canada (62%), Ontario (61%), Alberta (53%), and British Columbia (52%).

• Residents of British Columbia (27%) are most likely to say they will spend less, followed by those in Saskatchewan/Manitoba (24%), Alberta (21%), Quebec (21%), Atlantic Canada (21%), and Ontario (19%).

• Residents of Alberta (23%) are most likely to say they will spend more, followed by those in British Columbia (20%), Ontario (19%), Quebec (16%), Atlantic Canada (15%), and Saskatchewan/Manitoba (6%).

• Canadians aged 35-54 (62%) and 55 years or older (66%) are more likely than younger Canadians (52%) to say they will spend the same amount this year as last.

• Roughly the same proportion of men (63%) and women (57%) expect to be spending the same amount next year.

• Those with an annual household income of $30,000 or more (62%) are more likely than those with less than $30,000 (53%) to say they will spend the same amount.

Nine in ten (91%) Canadians plan to give gifts to others this holiday season. The rest of Canadians say they either don't plan to give gifts (8%) or don't know (1%) if they will give gifts.

On average, Canadians who plan to give gifts expect to spend $547 on others this holiday season.

• Canadians living in Ontario expect to spend the most ($650), followed by those in Atlantic Canada ($589), British Columbia ($552), Saskatchewan/Manitoba ($492), Alberta ($483), and Quebec ($404).

• Men ($556) expect to spend slightly more than women ($539) this holiday season.

• Expected holiday gift spending across the ages: 18-34 years old ($499), 35-54 years old ($586), 55 years or older ($545).

• Canadians with an annual household income of $60,000 or more ($694) expect to spend more than those with $30,000 to just under $60,000 ($538), and those with less than $30,000 ($355).

On average, Canadians expect to spend $444 this holiday season in areas other than gifts such as clothing, travel, beauty services, food and drink, or entertainment.

• Residents of Ontario ($518) expect to spend the most in other areas, followed by those in Alberta ($468), British Columbia ($456), Atlantic Canada ($416), Quebec ($355), and Saskatchewan/Manitoba ($331).

• Men ($489) expect to spend more in areas other than gifts such as clothing, travel, beauty services, food and drink, or entertainment than women ($401).

• Canadians 18 to 34 ($455) and 35-54 ($491) expect to spend more in other areas than gifts than those aged 55 and older ($373).

• Canadians with an annual income of at least $60,000 ($572) expect to spend more in areas other than gifts than those with $30,000 to just under $60,000 ($450) and those with less than $30,000 ($298).

Please open the attached PDF files to view the factum and detailed tables.

-30-

For more information on this news release, please contact:
John Wright
Senior Vice President
Ipsos-Reid Public Affairs
(416) 324-2900