Rising gasoline prices, persistent household costs and economic uncertainty are changing how Canadians spend.
September inflation reached 3.1%, driven partly by higher gasoline prices. Yet retail spending remains resilient.
Here’s what I find interesting.
NielsenIQ research shows Canadian consumers are spending more on consumer goods but purchasing fewer units. Meanwhile:
41% stock up when preferred brands are on promotion.
40% purchase whichever brand is on sale.
36% shop at discount retailers.
95% consider brand trust important.
RBC’s consumer spending research also shows that experiences, including entertainment and travel, continue to attract spending.
My perspective: Consumers aren’t necessarily spending less everywhere. They’re becoming more selective about what deserves their money.
For franchisors, this changes the conversation. Price matters, but so do convenience, quality, trust and experience.
The opportunity isn’t simply to discount. It’s to understand what motivates customers to purchase and give them a compelling reason to choose your brand.
The question: Do you really understand why your customers buy from you?