Just over 4 in 10 Canadian shoppers are now buying service categories less often than before the pandemic began. Among those who are buying less often, most are either spending the same amount or less with each transaction.

Since many of these categories are discretionary (with gas fill-ups being a possible exception), they’ve been hit harder for cutbacks vs. what we saw for food, beverages and non-food products.

Categories where Canadians have cut back even further since March 2022 include:

• Electronics
• Small countertop appliances
• Eating out/ordering food
• Sporting equipment
• Groceries

In part III of the Inflation Series, we see that to save money, one-third or more of shoppers are buying ONLY when products are on sale, with some exceptions.

CANADIANS ARE USING VERY DIFFERENT BUDGETING TACTICS BY GROCERY CATEGORY TO FIGHT INFLATION.

• Switching to private label is more popular for pantry basics than other categories
• Meat buyers are most likely to reduce how much they buy (and even more so among those 35+ years old and those with higher incomes)
• Bread buyers are the least likely to cut back in any way

Canadians have cut back across a wide range of expenses. Lottery, groceries, and pet treats are relatively less impacted, though still sizeable. One-third of Canadians have cut back on groceries with shrinkflation having a compound effect (higher cost for less).

Canada’s population is aging, and the burden of care for seniors
increasingly falls on their adult children. This growing “sandwich
generation” has the challenge of trying to balance the care for
parents/in-laws with their own careers, their relationships, caring
for their own children, and their health and wellbeing. Many
report feeling worried and overwhelmed, and feel the negative
impact on their health, relationships, and finances.

Almost 3 vears after federal legalization in Canada, recreational cannabis consumers have low brand awareness across even the top-selling recreational cannabis brand. This suggests that brands have not made meaningful connections with consumers and that their position as market share leaders may be tenuous.

A year later, Canadians are enjoying many aspects of the COVID reality:
• Less commuting, time to re-prioritize what’s important, quality time with family
But they are also showing signs of pandemic fatigue:
• Growing tensions at home; missing co-workers, running errands and socializing with friends

43% of Canadians have gained weight during COVID. Canadians of all ages, gender, and provinces are equally likely to have gained weight since the pandemic began. But 1 in 5 Canadians have actually lost weight during COVID, with men, 18-34 year olds, and residents of Saskatchewan and Ontario in the lead

2020 Black Friday/Cyber Monday continues to reinforce the significance of digital transformation at retail with significantly lower in-store shopping. In light of the current COVID-19 situation, few consumers in both Canada and the US are planning on shopping in-store this year for Black Friday vs. a year ago.

Employers should focus on minimizing risk (perceived and real) around all common workplace areas. The return of Canadians to the workplace after working from home is expected to be slow and with varying degrees of discomfort across the journey.

Fewer Canadians overall have experimented with being a vegan or vegetarian during COVID-19 vs. meat consumption reduction. However, 18-34 year olds and women are more open to adopting this diet/lifestyle.

30% of Canadians had already reduced meat consumption prior to COVID-19, with women, Quebec and British Columbia residents leading the way.

Among Canadian adults 19+, the incidence of consuming both alcohol and cannabis at least occasionally is 2x higher vs. that of cannabis only consumption. 30% consume neither alcohol nor cannabis.