TORONTO -- Canadians plan to spend a lot less this Christmas shopping season, with the majority seeking deep discounts at the big retail chains, as consumer confidence slides to a 26-year low.
A survey released yesterday by marketing research firm Maritz Research ÎÚÑ»´«Ã½ showed that shoppers plan to spend an average of $571 on gifts, down 14 per cent from the average of $663 last year.
About 70 per cent said they would pay cash -- including debit cards -- for the purchases.
"This year, the consumer mood is changing and as a result retailers are facing fiercer competition for a smaller pool of spending dollars," said Robert Daniel, managing director at Maritz.
Respondents also said they would shop at the large retailers, including Wal-Mart Stores, Canadian Tire Corp and Zellers.
Canadian retailers have been forced to cut prices on many key products as they look to fend off stiff price competition from U.S.-based retail giant Wal-Mart.
Wal-Mart ÎÚÑ»´«Ã½ said yesterday it was cutting prices on thousands of items -- including toys, electronics and small appliances -- ahead of what is expected to be a sluggish Christmas season.
The intense competition on prices comes as consumer confidence in ÎÚÑ»´«Ã½ dropped in November to its lowest level since 1982 as global economic turmoil intensified, the Conference Board of ÎÚÑ»´«Ã½ said yesterday.y
