Can loyalty and points programs help ease the pinch of holiday spending?

Loyalty programs can be a good way for consumers to potentially save money during the holiday season, but experts say it's not as easy as just signing up.

With the holiday shopping season underway, many Canadian consumers are looking to check boxes on their gift list while also keeping their household budgets in check.

Shoppers may be feeling more cautious about opening their wallets for fear of what the future may hold and are looking for opportunities to save money wherever they can.

The trade war — especially the ripple effect of U.S. tariffs leading to a weaker Canadian job market — has led to cost concerns among consumers.

“Consumers are cautious heading into the holidays because there’s a number of headwinds they’re facing. Particularly the fallout effects from the trade war, and as trade issues relate to companies really being cautious about hiring right now,” says retail analyst Bruce Winder.

“Consumers feel that and they’re in the same boat. They’re being very choiceful with what they spend on right now. They’re very careful because they’re nervous they might lose their job.“

A report by PwC released last month showed, on average, Canadians said they were planning on spending 10 per cent less than they did a year ago, with 81 per cent of respondents saying they planned on spending less.

Some retailers have noted customers are looking for value, discounts and lower prices overall.

Dollarama has seen its stock surge in recent years, with the company highlighting in its quarterly earnings report that “consumables” were driving the sales growth.