Economic uncertainty is forcing Canadians to rethink summer spending. A new TD Bank survey reveals 35% of Canadians plan to spend less this summer, while 44% say high fuel costs have altered travel plans.
Nearly half of respondents intend to redeem loyalty points, and 36% will opt for lower-cost alternatives like second-hand goods. Retail analyst Bruce Winder notes that thrifting has become a major trend after the pandemic, as consumers seek to stretch their dollars.
The shift is reflected in Value Village's earnings: net sales rose 8.9% to $403 million in Q1. CEO Mark Walsh cited upward pressure on new clothing prices and highlighted strong growth among younger, more affluent shoppers. Winder adds that many thrifters also view it as a treasure hunt for unique vintage items.
Value Village is investing in its loyalty program with Microsoft AI tools, as loyalty members now account for 73% of sales. The trend extends beyond low-income households, as the affordability crisis now increasingly affects middle-income Canadians.