Canadians Plan Their Leanest Holiday on Record, and More Will Shop With AI

Deloitte Canada’s 2026 Holiday Retail Outlook, released October 14, projects average holiday spending of $1,305 per person, down 14% from $1,521 in 2025 and the lowest level since Deloitte began tracking. Spending on gifts and gift cards is expected to drop 5%, with sharper cuts to holiday entertaining (22%) and experiences (20%). The bigger shift for marketers is how people shop: 39% of consumers plan to use AI for holiday shopping, mainly for gift ideas, price comparison and deal discovery, up from 25% last year. Planned spending splits 55% in-store and 42% online, and shoppers expect to use an average of 16 stores and online destinations, up from 14.

Your product data now has two audiences: shoppers and the AI tools they ask for help. Clear titles, accurate prices and visible promotions make you easier to recommend. With 51% of holiday budgets expected to be spent by the end of Cyber Monday, have your value messaging live before Black Friday, not during it.

Ottawa Adds $500 Million to Help Businesses Put AI to Work

On October 13, the federal government added $500 million over five years to the Regional Artificial Intelligence Initiative (RAII), bringing total program funding to $700 million. The program is delivered by Canada’s regional development agencies and supports two kinds of projects: businesses adopting AI in their operations, and Canadian AI companies bringing products to market. Since its 2024 launch, RAII has backed 218 projects and created or maintained more than 1,100 jobs. Intake windows vary by region: Atlantic Canada’s call closes November 20, and FedDev Ontario’s intake runs to January 19, 2027.

This is potential co-funding for AI projects already on your roadmap, such as personalization, demand forecasting or customer service automation. Deadlines differ by agency, so confirm yours now. Prairie and B.C. businesses should check intake dates directly with PrairiesCan or PacifiCan.

Visa Cuts Card Fees for More Small Businesses, but New Network Charges Follow

Starting October 24, Visa will extend its lower small-merchant interchange rate to businesses with up to $750,000 in annual Visa sales, up from $300,000, and lower rates for all qualifying businesses, according to the Canadian Federation of Independent Business (CFIB). The change builds on a 2024 agreement with Ottawa that cut interchange fees for small merchants, including on online transactions. The offset: Visa and Mastercard are introducing a new charge of 1.8 cents USD per domestic transaction. CFIB notes these network fees are charged to card processors first but are routinely passed on to small merchants.

For high-volume, low-ticket online stores, a flat per-transaction fee can eat into interchange savings. Ask your processor two questions before November: will the new Visa rate show up on your next statement, and how will the network fee be billed? Blended-rate plans can hide both.

Canadian Ad Spend Forecast to Grow 7% in Q4 as Budgets Shift to Display and Streaming

Canadian media spend is up 11% year to date through August and is forecast to rise 7% in the fourth quarter, according to a Guideline Insights report covered by Media in Canada on October 15. Digital display and streaming TV led the growth, while linear TV declined. The forecast tracks with Guideline’s August analysis, which found Canadian agency spend up 9% in the first half of 2026, outpacing global growth, with social media up 21% and digital audio up 25%. Guideline measures agency-placed spend, not the full Canadian ad market.

More agency dollars in display and streaming means more competition for the same holiday inventory, in the same weeks consumers are cutting back. Book Q4 placements early, and lean on owned channels like email, SMS and loyalty to protect margin as paid costs rise.

Canada Post Brings Weekend Parcel Delivery to Canada’s Biggest Markets

Canada Post is rolling out weekend parcel delivery, starting in Ottawa with Montréal and Toronto to follow by late November. According to shipping platform netParcel, eligible domestic parcels going to residential addresses get Saturday or Sunday delivery as part of standard service, at no extra cost. Canada Post says Vancouver, Edmonton and Calgary will follow next year, extending coverage to more than 7 million households. The move is part of a push to win back e-commerce volume after a period of strikes, delays and losses; Canada Post reported a $277 million pre-tax loss in the second quarter of 2026.

Seven-day delivery has long been a courier advantage. For merchants shipping into Ontario and Quebec, this closes the gap on Friday and Saturday orders during peak season. Check your checkout settings: options like Deliver to Post Office and Card for Pickup take a parcel out of weekend delivery. Western sellers should plan for 2027.