Lower inflation and a boost in purchasing power will see total retail sales rise, with gadget gifting leading the charge, according to a recent Mastercard SpendingPulse survey.

The survey, which measures in-store and online retail sales across all forms of payment (not adjusted for inflation), projects a 2.2% year-over-year retail spend hike in November and December 2024.

According to the SpendingPulse, electronics spending is going to spike 4.2% year-over-year, with the holiday season splurge driven by price reductions along with the introduction of new devices such as phones and video games.

Spending on jewelry and other accessories is expected to increase this year as well. While perennially popular gift ideas, jewelry and accessories are expected to see a 2.6% year-over-year boost in spending as Canadians indulge on items such as necklaces, watches and earrings.

Apparel spending is expected to increase 2.5% year-over-year this holiday season. The growth will likely be driven from consumers capitalizing on sales not only for holiday gifts, but as they transition seasonal wardrobes from fall into winter, according to the survey.

In-store shopping is expected to continue to outperform online sales in 2024, as consumers look to maximize budgets browsing brick-and-mortar storefronts for sales.

“Retailers are investing in elevated in-store experiences to attract foot traffic this year, with many expected to introduce in-store exclusive deals to improve the physical shopping experience,” says Steve Sadove, senior advisor for Mastercard. “Despite this, consumers are still expected to stay savvy and conscious of their budgets as they continue to maximize their dollar in search of the best deals – specifically looking in-store to find them.”