The COVID-19 pandemic not only affected how Canadians spend it also impacted what they bought. Now, after 18 months of restrictions and life-on-hold, Canadians are ready to get back into life. And that includes post-pandemic spending.
As vaccination rates continue to increase and COVID-19 infections continue to decrease, many are making plans to ‘return to normal’ or even ramp up the relaxation and recreation for the remainder of 2021, and beyond.
According to a recent Zolo Homebase survey, where more than 1,120 Canadians aged 18 and over were interviewed about their pre- and post-pandemic spending and saving habits, only a slim majority plan to “go back to living and spending the same as before COVID-19” (46%). A minority plan to “make up for lost time and splurge” (9%), while a 45% plan to “live a quieter life and save more money than before COVID-19.”
3 Spending Priorities for Canadians
That doesn’t mean that Canadians aren’t looking forward to spending money — and time — on what they value most.
According to survey results, 32% of Canadians prioritize “socializing with friends and family,” while 18% want to explore “international travel.” Another 15% will “focus on repairing their finances.”
Restrictions Are Lifted — Time to Spend!
Canadians are busy making plans on how to spend their time and money once the pandemic is under control. Turns out just under half (44%) “definitely” plan to “treat” themselves in 2021. Another 27% will probably “treat” themselves in 2021.
What Canadians plan to spend on is pretty consistent across the country, although there were a few regional differences.
6 Ways Canadians Plan to Spend After the Pandemic
Turns out the pandemic spending plans among Canadians can be categorised into six distinct categories, according to a recent Zolo Homebase survey.
When it came to spending, the top six categories people are planning to splurge on, include:
A Vacation
23% of Canadians prioritized a vacation as their first post-pandemic spend
Across Canada — and the world — travel came to a standstill during the pandemic. Cruise ships were docked; airplanes parked in hangars and hotels scrambled to find alternative revenue streams. Many wondered if the travel industry would ever make a comeback.
Turns out, trip-planning is a top priority for Canadians, which is good news for the hospitality and tourism sector.
Meal at a Fancy Restaurant
22% of Canadians prioritized a meal at a fancy restaurant as their first post-pandemic spend
While many restaurants struggled to keep their doors open during the last 18 months, others shifted gears to create more robust take-out and delivery options. Now, Canadians want to return to tables that offer waiter service and drink pairing.
Tickets to a Live Show
17% of Canadians prioritized tickets to a live show as their first post-pandemic spend
Entertainers and artists were probably some of the toughest hit during the pandemic. Many performers rely on the audience not just for ticket sales, but for affirmation and confirmation. Nothing can beat a live-show performance. Turns out almost 1 in 5 Canadians really felt the impact of no live performances — and plan to spend tickets on upcoming theatre shows, concerts, operas and other live events.
Buy a New Big-Ticket Item
14% of Canadians prioritized a new big-ticket item as their first post-pandemic spend
During the pandemic, there was resistance to spending on luxury or non-essential items. The fear was not knowing when or if the pandemic restrictions would end. Now that vaccination rates are increasing and infection rates are decreasing, many Canadians are starting to shift some of their savings to post-pandemic big-ticket item splurges, such as a new car, boat, or vacation property.
Self-Care
13% of Canadians prioritized self-care as their first post-pandemic spend
Many Canadians worked long hours to meet pandemic demands, so it comes as no surprise that after so many months of schedule disruptions that we’re starting to plan ways to indulge ourselves a bit. Massages, weekend retreats and other forms of self-care top this list with the ultimate aim of putting ourselves first.
Host a Party
11% of Canadians prioritized hosting a party as their first post-pandemic spend
One of the toughest aspects of the pandemic was not seeing friends and family for the usual social visits and during the holiday season. Many plans — such as milestone birthdays and weddings — were either postponed, dramatically altered or moved online. It should come as no surprise, then, that Canadians want to spend the time and money on parties and get-togethers with friends and loved ones.
Canadians Shifted Their Priorities During Pandemic
Many Canadians are reevaluating how they spend their money, with many people shifting what products they buy and where.
The pandemic has given all of us a broader perspective of what is most important in life with Canadians ranking mental health and relationships as their top two priorities post-pandemic.
While vacations or big spends were important for many, once pandemic restrictions lift, a larger number of Canadians wanted to focus on mental health and prioritized taking time to care for themselves as their top priority post-pandemic. The pandemic helped people realize they need to invest in their own happiness before anything else.
Will the Spending Spree Persist?
Not everyone had spending on their mind. When asked 16% of Canadians listed “repairing finances” as their top priority, which makes sense given that more than half of Canadians (58%) felt their finances were negatively impacted because of pandemic restrictions.
When asked how their finances were negatively impacted during COVID-19, 41% reported a salary cut or reduced working hours, while 24% reported a job loss.
There were also regional differences. Residents in Ontario and the Prairies reported a return to the norm once restrictions lifted. In Ontario, 47% said they’d return to pre-pandemic spending and saving while 53% of Prairie residents reporting a similar intention. Across these provinces, the emphasis was to socialize with friends and family or splurge on a jet-set vacation.
In contrast, British Columbia residents and those living in the Maritime provinces had no plans to return to normal. In BC, 67% of residents planned to live a “quieter life” once restrictions life, while in the Maritimes, 58% of residents had the same inclination.
Not everyone’s finances were negatively impacted, with 21% of Canadians reporting an increase in savings and 14% reporting more earnings (due to longer working hours).
Post-pandemic Working Conditions Could Change
During the pandemic, a lot of Canadians were forced to work from home with only 30% reporting an on-site office, store or business location as their primary work space during the pandemic.
Of those working from home, only 1 in 4 (28%) reported having a dedicated home office. The remainder of work-from-home space was divided with:
- 17% using a bedroom for a home office
- 8% using the living room
- 4% using the kitchen table
- 2% using a guest room
- 2% using outdoor space
As pandemic restrictions continue to soften, more and more Canadians are expecting to return to the office. According to survey results:
- 54% expect to return to their on-site office or business location as their primary work space (compared to 30% during the pandemic)
- Only 19% will work from a dedicated home office (compared to 28% during the pandemic)
- Most work-from-home Canadians will end up using their bedroom as their office (10%) while the remainder will use the living room (5%), a kitchen table (3%), a guest room (2%) or the outdoors (2%).
Unless there were online Zoom meetings scheduled for the day, many Canadians got comfortable working in more relaxed clothings, such as sweats, t-shirts and robes. As we return to “normal” and people start working from the office again, there will be a need to return to business attire and this is reflected in the buying plans of Canadians at the end of the summer. Turns out 37% of Canadians plan on purchasing new clothes once the impact of the pandemic declines.
Methodology
The Post-Pandemic Spending in Canada survey was conducted by Zolo Homebase, using Pollfish, between June 23 and 24, 2021. A sample of 1,123 Canadians aged 18 and over were interviewed. Each respondent was asked to answer questions related to their spending and saving plans once pandemic restrictions were lifted. The survey is accurate to within ±3 percentage points, 19 times out of 20.
