Trends Shaping Smart Spending in Canada

I was asked this week about a trend that’s been quietly reshaping Canada’s wealth landscape: younger investors choosing markets over housing. To me, this isn’t a story about lost dreams - it’s a story about access. As investing becomes easier, more intuitive, and lower cost, we’re seeing Gen Z and millennials enter the markets earlier, learn faster, and build confidence with tools and products that simply didn’t exist 15 years ago. That’s healthy. That’s modernization. And it’s an important signal for the wealth industry. There are great options today for young investors who want to start accumulating wealth - whether they’re saving for a down payment or choosing to rent and build their future through investing. What matters most is participation. As I said in the article: “The industry isn’t responsible for defining the hopes and dreams of Canadians. What’s important is that more Canadians have access to the upside of the public markets.” Democratization only works when we stop dictating and start enabling - especially for younger investors whose priorities differ from their parents and grandparents. 📊 The trend is real • Under-35s now represent 28% of online brokerage accounts (Investor Economics) which is nearly double 2018. • Three-quarters of Canadians 18–25 now own an investment (CFA Institute). • First Home Savings Account assets are set to double this year. This is a moment worth understanding deeply. 🔍 What Epok Advice is exploring with clients currently: • Are we witnessing a fundamental shift in the Canadian wealth ladder? • How should firms adapt their onboarding, advice models, and product design for Gen Z investors? • What new “investing pathways” will emerge when home ownership is no longer the first wealth milestone? • How do we protect first-time investors while still encouraging access and participation? If this topic matters to you and your firm, we should talk! #WealthManagement #Investing #GenZInvestors #FutureOfAdvice #Democratization #FinancialWellness @EpokAdvice

Last week, I had an engaging conversation with Kris McCusker, #CityNews680 on our recently released IBV Consumer study that reveals a widening gap between shopper demands and the current retail offering. I shared my insights on the key trends that are shaping Canada’s retail landscape: - AI appetite is rising among shoppers: Roughly 81% of Canadian consumers who haven’t used #AI for shopping expressed interest in using the technology for various aspects of their shopping journey, including product research (85%), deal hunting (81%), and customer service (81%). - Dissatisfaction dominates the #hybrid shopping experience: 67% of Canadian consumers consider physical stores as part of their primary shopping method, yet only 16% are satisfied with the in-store experience. Meanwhile, only 22% of Canadian consumers are satisfied with their online experience, underscoring the need for broader improvements to the overall shopping journey.  - Cost is still key for consumers in today’s economy: Most Canadian consumers (78%) reported that #inflation affects their shopping habits, influencing decisions on where and how they shop. - Data privacy is always top of mind: There continues to be a growing demand for transparent data practices and enhanced #security. #IBMCanada #ibmconsulting #retail

Canadian Tire: A Lens Into Consumer Psychology There are few retailers in Canada quite like Canadian Tire. As you go down the almost hundred aisles, you will see a collection that starts with tires and goes to pots, pillows, shovels, and finally seasonal Christmas knick-knacks. So when they report earnings, it provides a great read-through on how Canadian consumers are navigating the current economic environment and their state of mind. So, what did we learn? Focusing on Essentials: There was a clear mindset shift this quarter in the consumer, highlighting the greater emphasis they are placing on essential products at the expense of non-essential/"discretionary" items. It's natural for consumers with higher interest rates to be cautious about spending on seasonal items, but the area that was most clear was one of the secondary banners within the Canadian Tire group, Sport Chek. Sales at Sport Chek were a dismal -7.4% year-over-year, which shows the magnitude of the shift in consumer mindset from just last year. Consumers are voting with their feet that the new pair of Air Jordans can wait until a future date, but essential services like tire changes are going ahead as normal. I see this trend continuing until wages and consumer confidence improves. Geographic Disparity: The language couldn't be more clear about the uneven consumer confidence across geographies. Canadian Tire specifically called out "the soft consumer spending experienced in Q2 persisted into Q3, particularly in Ontario & BC." It's not a coincidence that both Ontario and BC have the highest national home prices and the most leveraged consumers. These are the exact consumers that are most likely to feel the pinch from higher interest rates, forcing them to make difficult decisions about spending. The global story we have seen with consumers becoming more cautious about their spending habits around the world is even more meaningful in Canada. On average, Canadians have more debt and don't have the luxury of refinancing their mortgage for 30 years like our US peers. I expect consumers will focus on essentials and staples for the foreseeable future, creating opportunities in certain areas and risks in others. Have a great weekend!