Consumer spending in Q3 spelled great news for Canadian merchants. Overall spending was up by 4.52 per cent*, leaving merchants with a sense of good cheer heading into the busy holiday season.
For the third consecutive quarter, consumer spending in Canada climbed steadily, compared to 2012. Although Calgary and its surrounding areas suffered intense flooding at the end of Q2, Alberta led the way in spending in Q3, likely as a result of Albertans shopping for items lost or damaged during the floods. Fellow prairie provinces, Manitoba and Saskatchewan, rounded out the list of highest spending provinces in Canada but the positive spending trend was felt by merchants from coast to coast, with all provinces experiencing an increase compared to 2012.
"Despite the devastating floods that occurred in Calgary in June and in Toronto in July, Q3 spending was up across all spending categories in Canada, including Alberta and Ontario,” says Angela Brown, President and CEO of Moneris Solutions Corporation.
Unlike the previous two quarters, credit card spending (up 4.92 per cent) outpaced debit card spending (up 3.93 per cent) in Q3, which may point to Canadians feeling more comfortable about carrying household debt.
Specialty retail, restaurants and apparel saw the most growth in spending in Q3 compared to 2012.
When it comes to what retail items Canadians bought the most in Q3, pet stores topped the list, followed by sporting goods and shoe stores. Cosmetic stores and book stores, on the other hand, saw a drop in spending compared to 2012.
If this year's spending volumes to date are any indication, the temperature in Canada is the only thing we can expect to drop in Q4 and during the holiday season. With Christmas drawing near – traditionally the busiest shopping season in Canada – retailers can look forward to some extra holiday cheer, as spending across Canada is expected to increase.
* All figures cited in the article are based on Moneris’ Q3 Spending Report, 2013. ® MONERIS, MONERIS & Design, and MONERIS SOLUTIONS & Design are registered trade-marks of Moneris Solutions Corporation (Moneris). All other marks or registered trade-marks are the marks or registered trade-marks of their respective owners. The information in this newsletter is provided solely for informational purposes and is not intended to be legal, financial or other professional advice. Information and opinions in articles by third parties are the personal opinions of the authors, and are not endorsements by or opinions of Moneris. Links to websites are provided for convenience only and linking is at your sole risk. Moneris does not review or endorse, and is not responsible for, any third-party website, the content of those sites, or their products or services.
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Moneris processes more than 3 billion credit and debit card transactions a year, for over 350,000 merchant locations across North America. We have over 1,300 dedicated employees who understand transaction processing and know how to make it work for you.Follow on Twitter More Content by Moneris