Eighty-four per cent of Canadian shoppers believe some holiday discounts are fake or misleading, according to new data from Lightspeed Commerce. That distrust is driving a measurable shift from e-commerce toward experiential retail, with two-thirds of Canadians now visiting holiday markets regularly and spending between $70 and $280 per visit.
The numbers reveal what many retailers have missed. Nearly 40 per cent of Canadians say holiday atmosphere makes them more likely to shop in person. Half spend more time in stores when festive elements are done right. Among 18- to 24-year-olds, that jumps to 67 per cent.
“Our data shows that experience is now a core part of retail strategy, and the holidays make that trend especially visible,” says Mike Ganci, MD of NOAM Retail at Lightspeed Commerce. “With four in 10 Canadians saying festive touches make them more likely to shop in person, this tells us people are craving atmosphere, connection and discovery.”
Market visitors aren’t chasing deals. Forty-nine per cent cite unique gifts as their reason for attending, 39 per cent want holiday spirit and 38 per cent specifically want to support local businesses. When promotional trust erodes, authenticity becomes the differentiator.
The economic impact is substantial. Toronto’s holiday markets are expecting more than 1.2 million visitors this season. The Distillery Winter Village alone projects over one million attendees and employs more than 700 seasonal workers across 47 vendor cabins and nine outdoor bars. The One of a Kind Show draws 200,000 attendees to see more than 500 exhibitors. St. Lawrence Market’s Winter Market expanded in its second year after overwhelming first-year attendance.
These events contributed to Toronto’s record $8.8 billion in visitor spending in 2024, which generated $13 billion in total economic impact. Entertainment spending represented 11 per cent of visitor dollars, or $968 million.
Ganci sees the trust crisis as an inflection point. “Shoppers have a wide variety of tools at their disposal when it comes to price checking, so the fatigue related to price fluctuations is justified, particularly when deals are inflated,” he says. “Retailers have a real opportunity to build trust by focusing on transparency, consistency and human communication.”
That requires fundamental changes. “Authentic retail means offering clear, honest pricing without inflated markdowns. It means explaining the value of products in straightforward language. It means avoiding tricks and speaking to customers in a tone that feels human rather than overly promotional.”
Holiday markets succeed because these principles are built in. “Customers can see who made the product, understand the story behind it and feel confident in the value,” Ganci says. The One of a Kind Show, which has run since 1975, proves the model scales—more than 500 exhibitors selling directly to 200,000 attendees with complete pricing transparency.
But Ganci’s point isn’t about replicating markets. It’s understanding what makes them work. “Small but meaningful moments of experience are what matter: rotating themed displays, pop-ups with local makers, sensory cues like music or scent, or interactive elements that change with the season.”
The data validates this approach. Fifty-six per cent of Canadians consider the holiday store experience important to their shopping decisions. Among young adults, that approaches 80 per cent.
Ganci describes retail’s evolution as stores becoming third spaces—places people choose to spend time outside of home and work. “Across Canada, we are seeing boutiques hosting maker events, cafés showcasing local artisans and apparel stores running workshops or charity drives,” he says. “These activities give people a reason to linger and return.”
St. Lawrence Market’s approach shows how permanent retailers can adapt. The 120-merchant market added a Winter Market component with more than 75 artisans, free admission and rotating weekend attractions—turning an existing asset into a seasonal destination.
“People visit for the atmosphere as much as the shopping,” Ganci says. “Permanent retailers can take cues from this by creating small moments of community throughout the year. When stores become places where people want to spend time, loyalty naturally follows.”
The generational question is less about tailoring by age group and more about universal principles with flexible execution. While 67 per cent of 18- to 24-year-olds spend more time in festive stores, the desire for connection spans demographics.
“Retailers should design experiences that are universal in intent but flexible in execution,” Ganci says. Young shoppers respond to immersive displays and social media-friendly moments. Older shoppers value comfort and clarity. “The underlying principle is the same. People of all ages want to feel something when they shop.”
For retailers looking to apply market principles year-round, Ganci offers specific direction. “First, retailers can curate more like a market by keeping assortments fresh and spotlighting local or seasonal products. Second, they can bring the human element forward by sharing maker stories, featuring staff expertise and partnering with local creators. Third, they can lean into multisensory elements such as music, scent and warm lighting that make markets feel alive.”
The distinction between temporary and permanent retail matters less than the underlying approach. “The success of holiday markets does not come from being temporary,” Ganci says. “It comes from creating an environment that feels joyful, personal and real. Any retailer can apply those principles year-round.”
The Lightspeed data suggests Canadian retail is at a crossroads. With 84 per cent of shoppers questioning promotional integrity and 68 per cent actively seeking authentic experiences, retailers who can deliver what Ganci describes—environments that feel joyful, personal and real—will have a significant advantage.
The holiday markets aren’t the story. They’re the proof.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.