More than half (53%) of Canadians have maintained that the rise in the price of goods and services for several months has had an impact on their ability to purchase, a situation that is also forcing companies to review their offer.
This trend would mainly affect low-income households (81%), but not only, according to EY’s index of changing consumer habits. Half of middle-income households and 35% of high-income ones must also revise their consumption habits downwards.
“These significant changes, coupled with inflation, are causing consumers in all income categories to change their shopping habits and rethink their buying decisions,” said Daniel Baer, Certification Leader, Products on Wednesday. consumer and retail from EY Canada.
Canadians are spending less on clothing (40%), beauty products and cosmetics (37%) and large items (34%), preferring to save for the future.
“Consumers expect to lead modest post-pandemic lifestyles and place more value on experiences. More than a quarter of Canadians are increasing their spending in this category rather than on material goods,” added Mr. Baer.
This phenomenon is also forcing companies to review their product offerings and invest in technology to improve the customer experience, as fewer and fewer Canadians are willing to leave the house.