Canadians spend more this holiday, AI faces retail challenges, and retail sales rise

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ISinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

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Recently in Logistics; Holiday budgets in Canada are up 32% to $971, marking the largest increase since 2019, with shopping centres remaining a preferred destination. Generative AI is quietly transforming retail experiences, though most consumers remain unaware of its presence. Retail sales saw a 0.4% boost in October, with strength in autos, electronics, and dining, showcasing resilience amid rising costs. Walmart’s U.S. sales jumped 5.3% last quarter, driven by high demand for groceries, toys, and home goods. Amazon plans to freeze fulfillment fees for third-party sellers in 2025, streamlining operations and reducing costs.

Holiday budgets in Canada have surged 32% to $971, the largest rise since 2019, with shopping centres remaining the top destination. Canadians are spending more on experiences like dining and travel, while social media’s influence on shopping is declining, particularly among Gen Z. Gift cards are still a top choice, and younger shoppers are focusing on savings amid increased spending.

Most consumers are unaware they’ve encountered generative AI in retail, despite its growing role in enhancing shopping experiences. With 75% of shoppers expecting disclosure when AI is used, transparency and personalization are crucial for trust. Retailers should focus on practical applications, like deal-finding and personalized recommendations, rather than using AI for novelty.

Retail sales rose 0.4% in October, led by strong spending at auto dealers, electronics stores, and restaurants, showing consumer resilience despite high prices. Analysts predict a steady holiday shopping season, supported by easing inflation and rising consumer confidence, though high food costs remain a concern.

Walmart’s U.S. sales grew 5.3% last quarter, driven by strong demand for groceries, toys, and home goods, exceeding expectations. The retailer raised its annual forecasts as e-commerce sales rose 27%. While holiday spending remains steady, nonfood sales are slower. Walmart continues to gain market share across income groups, closely watching potential import cost changes.

Amazon will freeze fulfillment fees for third-party sellers in 2025 to simplify operations and cut costs. It credits its regional fulfillment model for this stability and will lower fees for certain bulky items in January. Sellers welcome the move but remain cautious about past fee hikes, focusing on profitability and logistics. Amazon aims to balance seller affordability with maintaining service quality.

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NLS Logistics Team Communications
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market
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