Bargain and Cheer: Canadians Spread Holiday Joy by Tipping Retail Workers Despite Tight Budgets

• 61% of Canadians plan to shop online this Black Friday to avoid crowded stores.
• 42% of Canadians consider Black Friday to be an important part of their holiday shopping, while 24% will have most of their holiday shopping finished before Black Friday.
• Despite financial pressures, 53% of shoppers are willing to tip retail staff for exceptional service—this figure soars to 83% among Gen Z.

Montreal, QC – Monday, November 11, 2024 – As the holiday shopping frenzy kicks into high gear, Canadian consumers find themselves in a balancing act, juggling tighter budgets with the excitement of scoring the best deals. Despite economic uncertainties, many are eager to spread holiday cheer by tipping retail workers during this bustling season.

New research* from Lightspeed Commerce Inc. (NYSE | TSX: LSPD) reveals that 38% of Canadians have been more cautious with their spending in the lead-up to the holiday season. This cautiousness intensifies competition among retailers for the coveted holiday dollars, with 69% of respondents deeming discounts “very important” or “extremely important” in their shopping decisions. Additionally, 42% of Canadians see Black Friday and Cyber Monday as “important” or “very important” for holiday gifting, while 24% believe online deals are superior to in-store offers.

Interestingly, while consumers may be watching their wallets, a heartwarming trend has emerged: 53% of Canadians are willing to tip retail staff who provide a memorable shopping experience, with that number jumping to 83% among Gen Z (ages 18-24). Additionally, 37% of shoppers are open to tipping 10% or more for exceptional service – a refreshing contrast to the tipping fatigue seen in other sectors.

This holiday season comes with unique challenges. With five fewer shopping days between Thanksgiving and Christmas than last year, many consumers are feeling the time pinch, with 24% reporting that they are expecting to have finished the majority of their holiday shopping prior to Black Friday, avoiding crowded stores and frantic gift-hunting.

The condensed shopping timeline is adding to consumer stress, with 31% worried about finding the time to complete their holiday shopping. Consequently, 61% of Canadians plan to shop online this Black Friday to dodge crowded stores and long lines, while 39% fret about navigating through throngs of fellow shoppers. The motivators for Canadians to spend with retail brands are crystal clear: free shipping or delivery (51%) and enticing special offers or sales (57%). 

This shortened shopping period may also spark stock shortages for in-demand items, leaving some shoppers feeling frustrated. One in five (20%) respondents are anxious about locating the “it” toys and gifts, while 22% are interested in subscribing to a retailer’s VIP service that offers perks like skipping lines, early access, and personalized shopping experiences—an interest that rises to 43% among Gen Z.

“As we dive into the holiday shopping season, consumers are navigating a unique landscape, balancing the thrill of snagging great deals with the desire to support those who provide exceptional service,” said Dax Dasilva, Founder and CEO of Lightspeed Commerce. “It’s heartening to see shoppers ready to express their gratitude to retail staff during their busiest season of the year, adding a sprinkle of generosity to their savvy shopping.”

For retailers looking to adjust their in-store shopping experiences and sales strategies in line with these consumer insights this holiday season, the addition of mobile touchpoints and registers may be an answer. The launch of a new mobile selling feature within Lightspeed’s Scanner app allows retail workers to engage directly with consumers on the floor as they shop, offering the ability to make purchases directly and avoid the long lines that Black Friday and the holiday season in general are infamous for.

*Methodology

Lightspeed initiated a consumer survey throughout July 2024 using third party survey vendor Medallia. Over 2,500 responses were collected amongst Canada and the United States. Respondents were required to be over the age of 18, and have purchased retail goods within the past six months. All responses collected were anonymous.