The Small Business Holiday Outlook 2025: How Canadian Small Businesses Can Win the Holiday Season

The holiday season is almost here, and for many Canadian small business owners, it’s the most important time of the year. It’s when your hard work pays off — or faces its biggest test. 

For our latest Small Business Now report, we surveyed more than 1,800 small business owners and nearly 2,500 consumers across Canada,  the United States, the United Kingdom, Australia, and New Zealand to dive deep into what’s happening on the ground, revealing the strategies that work and the challenges you’re ready to conquer this holiday season.

The holiday season is your Stanley Cup

For many small businesses, the holiday season is a make-or-break moment. Across all regions, 60% of small businesses say this time of year makes up as much as half of their annual sales. That’s a big deal — and it’s no surprise that 34% of business owners in Canada and beyond feel real pressure to perform in Q4. 

The good news? Most are confident they’ll hit their revenue goals. With smart planning and a focus on what matters most, you can too. 

Social media and deals drive action

When it comes to holiday marketing, Canadian small businesses know where to focus their energy. Nearly 40% of small business owners say social media is their most effective marketing channel for the holidays, far ahead of email (18%). 

And once you’re got your audience’s attention, the right offer can seal the deal. More than half of small businesses say discounts and sales are their most successful promotion. 

Want to get creative? You’re not alone. Across markets, small businesses are experimenting more than ever before. Even though U.S. businesses are leading the way in trying new campaign ideas, Canadians have a secret strength: we’re more likely to use data to make smart decisions. In fact, 28% of Canadian business owners say they rely on customer data and insights to shape their holiday strategies.

That’s a smart move. Using data helps you know your audience, fine-tune your offers, and make every marketing dollar count. So go ahead and double down on your social media game. Constant Contact offers integrated Social Media Marketing tools to help you create engaging posts and reach new customers.

Inflation, tariffs, and staying resilient

Economic pressure is still a major concern for many Canadian SMBs. inflation and rising costs top the list of worries for 72% of small business owners. For Canadian’s, trade costs are hitting harder than in many other regions — 52% of Canadian small businesses say they’ve been negatively affected by tariffs, compared to 36% in Australia and New Zealand. 

To manage these challenges, many owners are cutting expenses, raising prices, or finding ways to boost efficiency. You can’t control global markets, but you can control how you adapt. Streamline what you can and make sure every effort counts. 

Canadian consumers are loyal, and looking for deals

There’s good news on the customer side, too. Even though many Canadians are feeling the pinch from higher prices, they’re not giving up on shopping — they’re just being more strategic. About 70% of consumers say they’ll look for deals and discounts this year, and they’re planning to shop earlier to get the best value. 

Here’s the best part: Canadians love supporting local! 

72% of consumers return to the same small businesses every holiday season

88% are likely to become repeat customers after a holiday purchase

That means every holiday shopper could turn into a loyal, long-term customer. Building that relationship through personal service, thoughtful communication, and a little holiday cheer goes a long way. 

Don’t do everything — do what works best

It’s easy to feel like you have to do it all, but the best results come from focusing on what matters most. The top challenges for small businesses this season are limited budgets (36%) and finding fresh ideas (34%). 

So keep it simple: 

• Prioritize social media and deals that work for your audience. 
• Use your customer data to make smart decisions. 
• Keep building loyalty with email marketing and personal touches. 

With the right tools and focus, your small business can shine this holiday season. 

Join our free one-hour webinar on November 13, 2025 at 2:00 pm ET to learn about holiday campaign ideas, strategies to amplify your campaigns, and time-saving tips for getting more done this season. (Can’t make the live session? Register to get the recording sent to your inbox!)
In the meantime, download the full Small Business Holiday Outlook 2025 Report for more insights on how fellow small business owners in Canada and around the world are navigating the busiest time of the year.