Canadians' Spending Intentions "Cool Off" in January But Still Positive, Reports Stifel Canada

02:03 PM EST, 01/29/2026 (MT Newswires) -- Stifel Canada's quarterly consumer spending survey suggests that spending intentions are moderating sequentially compared with October 2025.

"In almost all categories we monitor, female and low income respondents, as well as young shoppers (18-34yrs) show declining spending intentions," write analysts Martin Landry and Daryl Young.

The survey is positive for Spin Master (SNMSF) , BRP (DOO.TO), Kits Eyewear (KITS.TO), mixed for Pet Valu (PTVLF) , Air Canada (ACDVF) and Leon's Furniture (LNF.TO) and negative for Aritzia (ATZAF) , Groupe Dynamite (GRGD.TO), Gildan (GIL.TO) and Dollarama (DOL.TO).

Stifel's consumer survey was conducted last week, and given to 300 Canadians above 18 years old to gauge their spending intentions over the next year. "Respondents to our survey may not be as enthusiastic as in October 2025 but nonetheless they do exhibit signs of confidence." Landry and Young report that 54% of respondents are still expecting to increase their spending on discretionary items.

Spending intentions for pet food and pet accessories remain healthy, with 73% of respondents expecting to increase their spending on pet food and pet accessories in the coming year. Spending intentions for pet food and pet accessories peaked in April 2025 at 76% and have been on a slight decline since. "We view these results as mixed to slightly positive for Pet Valu (PTVLF)."

Seventy percent of respondents expect to increase their spending in the next 12 months at dollar stores, below the 72% average reading of the last 10 surveys, likely a slight negative for Dollarama.

Powersports spending intentions remain strong, with 9% of respondents very likely to purchase or upgrade a powersports vehicle in the next 12 months, higher than the 7.8% average of the last four years.

Clothing and apparel spending intentions contracted in January, with 45% of respondents expecting to increase their spending on clothing and apparel in the next year, down 800bps sequentially and the lowest reading of the last 11 quarters. The decline comes from females respondents, where only 38% expect to increase their spending in the next 12 months, the lowest level since Stifel started its survey work.

Spending intentions for furniture remains strong, with 58% of respondents expecting to increase their spending on furniture in the next 12 months, above the 57% average of the last five quarters. Spending intentions for male respondents increased sequentially while they decreased for female respondents. "We believe this is mixed to slightly positive for Leon's Furniture."

Sixty-four percent of respondents also expect to boost their spending on children's toys in the next 12 months, a jump from the 55% average of the last 10 quarters, and a positive for Spin Master (SNMSF).

KITS' brand awareness is up significantly. Stifel attempted to measure brand awareness for a select group of online retailers among young shoppers aged 18-34. About 27% of respondents were aware of KITS, up more than 600bps compared with the January 2025 survey. The increase comes from Ontario and Quebec respondents, suggesting that the brand has been successful at increasing its profile outside its local Vancouver market.

Finally, consumer air travel demand appears to be stable, with the survey reporting a ~100bps decrease in the number of respondents indicating that they are 'likely' or 'very likely' to fly in the next 12 months for their next vacation.

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