CIBC Poll: Nearly one in ten Canadians plan to take advantage of Black Friday and Cyber Monday deals
Debit and Credit cards growing in popularity over cash for holiday spending
TORONTO, Nov. 19, 2012 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) Poll conducted by Harris/Decima reveals nearly one in ten Canadians plans on making a purchase during this year's Black Friday and Cyber Monday sales period - a figure which suggests that millions of Canadians will be shopping for holiday deals this weekend on either side of the border. The poll also reveals that Canadians won't be carrying a pocketful of cash during their shopping trips, as an increasing number of Canadians are turning to the convenience of using a debit or credit card for most of their holiday shopping.
Highlights of the poll include:
- 9 per cent of Canadians say they plan to make a purchase on Black Friday or Cyber Monday, with another 7 per cent of Canadians saying they were undecided as to whether they will be making any purchases this weekend
- Regionally, Atlantic Canadians (14 per cent) and Ontarians (13 per cent) are among the most likely to say they plan to make a purchase during Black Friday and Cyber Monday
- 70 per cent of Canadians say they plan to use their debit or credit card to pay for the majority of their holiday spending in 2012, up from 67 per cent in 2011
"Black Friday marks the unofficial start to the holiday shopping season for many Canadians," said Colette Delaney, Executive Vice-President, CIBC. "With the start of the biggest shopping period of the year it's very important to consider your budget for gifts and other expenses and to start keeping track of what you spend over the coming weeks, Whether you are using your debit card to help keep closer track of expenses, or earning rewards on your credit card with a plan to pay off your balance, keeping track of your budget will help ensure that you spend only what you plan to this holiday season."
Canadians switching to debit and credit for holiday shopping
Paying by debit (35 per cent) and paying by credit card (35 per cent) are equally favoured payment methods for the majority of Canadian holiday purchases.
This means that more than two-thirds of Canadians (70 per cent) prefer debit or credit for holiday shopping, up from 67 per cent in 2011 - while those preferring to use cash has dropped to 27 per cent this year from 29 per cent a year go.
Both debit and credit cards offer Canadians security when making purchases, but can also make it easier to keep track of spending through tools such as mobile banking and services like CIBC CreditSmart, which alerts clients when they've exceeded their planned budget.
The survey also revealed that Canadians who said they plan to use their credit card to pay for their holiday purchases are doing so because they collect reward points (58 per cent) or for convenience (60 per cent), and most have a plan to quickly pay off their holiday spending in full (76 per cent).
"Being able to log in to mobile banking on your smartphone while you are at the mall, or receive an alert to let you know you've exceeded your planned budget are just two examples of using your smartphone or computer to quickly tabulate your holiday spending and know exactly where you stand in terms of your budget," added Ms. Delaney.
To help manage expenses over the holidays, CIBC offers the following tips:
For online or cross-border shoppers, know your payment options: For those preferring to pay by debit, you can use the CIBC Advantage Debit Card to shop in the U.S., internationally and at participating online retailers where Visa cards are accepted. Plus, as always, you can use this same debit card to shop at stores in Canada where Interac debit is accepted.
Stay on Top of Cash or Debit purchases: Canadians planning to use cash or debit can track their spending by using the CIBC Mobile Banking App on their smartphone, allowing clients to check their balance and see what they've spent so far that day in just a few seconds.
Have a Plan for Credit Card purchases: Canadians planning to use a credit card to pay for their holiday expenses should ensure they have a plan to pay off their balance to avoid incurring interest charges. With a plan in place, you can earn rewards for your purchases that may save you money on other items, such as discounts on gas purchases or cash back.
Free services like CIBC CreditSmart can help Canadians stick to their budget. Free to CIBC credit card holders, CIBC CreditSmart allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.
Redeem Rewards: 11 per cent of those surveyed said they were planning to redeem rewards to help offset the cost of the holidays. Whether you collect points or cash back on credit card purchases, there may be value in using some of those rewards this holiday season. For example, this year CIBC estimates it will reward clients with $89 million in Dividend Dollars on their December statements, up from $85 million in 2011, putting cash in their hands at a time when they can best use it to help offset the cost of holiday spending.
KEY POLL FINDINGS
Percentage of Canadians that say they plan to make a purchase during the upcoming Black Friday and Cyber Monday sales period:
Percentage of Canadians that plan to use their debit card to pay for the majority of their holiday spending by region:
Percentage of Canadians that plan to use their credit card to pay for the majority of their holiday spending, by region:
Percentage of Canadians that plan to use cash to pay for the majority of their holiday spending, by region:
*Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These data were gathered in a sample of 865 Canadians who know how much they will spend over the holidays this year between October25th and 29th, 2012. A sample of this size has a margin of error of +/-3.1%, 19 times out of 20.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.
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