It’s the classic gift you buy your nephew when he grows out of his dinosaur phase. It might also be the hottest holiday present of the year.
Driving the news: Demand for gift cards is expected to grow this holiday season, as shoppers hunt for tariff and inflation-resistant gifts. A BMO survey found that 47% of Canadians are planning to buy gift cards for their loved ones this year, up 5% from 2024.
- On the other side of the border — where tariffs are driving prices up even further — ~60% of holiday shoppers bought a gift card in September, more than any other category of gift.
Why it’s happening: Gift cards can be a bit of an inflation hack for those who don’t want to break the bank checking names off their holiday shopping lists – a $25 gift card still only costs $25, after all.
Why it matters: The gift card boom is part of a creative, cost-cutting shift in how shoppers approach their holiday spending, as nearly half of Canadians plan to spend less than they did last year, according to Boston Consulting Group data shared with The Peak.
Zoom out: Around 44% of Canadians are expected to gift DIY or homemade presents this year, while the same share of shoppers are considering gifting resale or second-hand items.—LA