Holiday spending is going to get a 35% lift, but it appears a majority of Canadians are overwhelmed by the tyranny of choice. That’s according to Accenture’s Annual Holiday Shopping Survey, a global study that included 506 respondents in Canada.

According to the report, consumers are planning to spend an average of $780 this season, compared with $578 last year. However, 70% of consumers face “buyers’ block” – the effect of feeling overwhelmed by the number of options to choose from.

In addition, more than half of consumers (rising to 55% of Gen X consumers and 67% of boomers) report that they prefer to visit physical stores to see and assess products first-hand. Accenture recommends retailers apply creativity to store layout to maximize the sales for each square foot of their allocated selling space. For example, by creating a dedicated area for gift wrapping or personalization services.

Here is a look at what consumers said was most important when shopping this holiday season.

Discounts

Accenture numbers reveal that 70% of consumers rated price and value among the most important purchase drivers, with 33% of respondents reporting they will shop where and when they are offered promotions or discounts. Retailers need to win every day, not just peak sales and promotional days, and so they should look beyond the stand-alone sales events such as Black Friday and Cyber Monday, Accenture notes.

With 44% of Canadian shoppers planning to shop between now and early December, retailers will need to pay close attention to data and analytics to carefully balance how and when to offer promotions and discounts, while preserving profit margins.

Artificial Intelligence

Accenture numbers reveal that 71% of shoppers are worried they’ll make the wrong purchasing decision and regret it, with 75% welcoming inspiration or assistance. The majority (79%) of respondents say they will abandon their shopping carts due to frustration or indecision, and 27% will shop elsewhere as a result.

Retailers can differentiate by guiding consumers at each stage of their shopping journey, as 89% of consumers agree that gen AI could help them find better gifts, while 86% value the recommendations that gen AI tools provide.

Gift cards

The gift card is a staple of the holiday gifting experience yet it doesn’t always foster the personal connection that drives brand loyalty. For example, despite the continued popularity of gift cards, 40% of survey respondents said they failed to redeem the full balance of a card, resulting in an unspent balance of $136, on average, per consumer.

Also, 30% of gift card recipients are disappointed that the giver hadn’t put time and effort into planning a personalized gift while the same percentage expressed apprehension about the time and effort they would need to put into using the gift card.

The survey recommends that retailers must make the cards easy to purchase, use and manage, and that they can boost customer satisfaction and generate loyalty through enhancing the gift card experience, making it less transactional and more personal.