Retail therapy is a way of using shopping to feel better emotionally. People sometimes turn to retail therapy to manage stress, sadness, boredom, or anxiety. It is because of these underlying factors, not to meet a real need. While retail therapy can give people a short-term mood boost, it can also affect finances and mental health over time. Especially with the high cost of living in Canada, this can be a slippery slope.
What is retail therapy?
Retail therapy means browsing, window shopping, or buying things. It’s a way for people to uplift their mood, feel in control, or distract themselves from uncomfortable or negative feelings. People often feel a “hit” from choosing items, sometimes researching and reading reviews, and anticipating the purchase. The whole process provides the “hit”, not just from owning or having the item.
Interestingly, it is not always associated with the price of the items. Small, impulse splurges like a fancy coffee, candles, or finding quick deals online can also have the same effect as big spends.
Psychologically, it’s an emotion-focused coping strategy. Retail therapy helps people change how they feel for a while, providing a pleasurable, short-term boost. However, it does not address the real source of stress.
Most people do this only occasionally, and within a set budget. For example, putting aside money for the occasional takeout or coffee. Maybe, saving up for the expensive but durable pair of jeans instead of fast fashion. Planning for the splurge makes it less impulsive. This way, it feels more like a harmless treat. Hence, less harmful to your finances and mental health.
Why is retail therapy concerning?
Retail therapy can feel good for a while. Buying something new can trigger dopamine, the brain’s feel-good chemical. This offers quick relief from stress or sadness, but doesn’t last long. Once the initial excitement fades, the “treat yourself” urge returns, creating a cycle that can be hard to manage.
If you’re buying things you don’t need or even really want, it can be concerning. In that case, you’re probably not going to use it very much, and maybe even forget about it after a while. This wastes money and can also cause clutter and regret. Over time, people realize they’re trying to satisfy deeper needs by buying material possessions. It seldom works that way.
A big concern is that it can turn into addictive or compulsive spending. That’s where the urge feels like a “need”. It can also affect your mental health, especially if you’re trying to make ends meet. Many people feel guilt, shame, or anxiety about it. It can also affect personal relationships if they’re not honest about it. Maybe you’re trying to save up for something meaningful to you, like travel or education. Splurging impulsively can delay or prevent that. If you’re not careful, it can also lead to debt.
Ultimately, retail therapy isn’t always harmful. If it becomes a default coping mechanism, it’s worth considering your underlying emotions. Finding healthier ways to manage stress can be more frugal while offering lasting comfort.
Signs your retail therapy is a problem
In Canada, there are many factors at play. Currently, there is a combination of high consumer debt loads and easy access to credit. This means that people can get money to spend that they can’t pay back, and are then caught in a debt trap. Giving in to splurges and depending on credit can make this cycle worse. Add in the constant marketing for consumer goods and otherwise, which makes people want to spend. Putting all this together, it can be easy to get into debt and become reliant on it.
Many people indulge in retail therapy occasionally. For some, it can become a problem. If you relate to more than a few of these, you may want to take a look at your spending patterns:
- feeling like you’re shopping very frequently
- hiding purchases
- feeling a strong urge to shop when stressed or upset
- regularly returning items you didn’t need or can’t afford
- having “multiples” and backups in many product categories, more than you realistically need
- justifying purchases to yourself, or convincing yourself you really “need” a thing
- growing credit card balances
- struggling to pay for essentials
If retail therapy is part of why you’re in debt, many people find it helpful to start tracking their cash flow, meaning income and spending.
What to do instead?
If you can relate to the signs above, consider making some changes in your spending patterns and choices. Here are some suggestions for a helpful starting point:
- Set aside a part of your budget to accommodate those small impulse purchase days. The idea isn’t to restrict yourself from ever buying treats. Everyone has those moments: just budget for it and stick to the limit.
- Focus on experiences instead of purchasing things. Even if you’re spending, do it for something you really want. For example, you could cut down on your impulse buys and save up for the holiday you wish you could afford.
- Go for a walk, and you can raise your endorphins naturally. It’s good for health, and it’s free!
- Try to incorporate mindful spending. Notice your spending triggers. Ask yourself if you need it, want it, and it fits in your budget.
- Set a time limit. 1 day or 3 days is popular for people trying to cut down on retail therapy. Wait for that time limit before you allow yourself to click “purchase”. Wait and see if you still want the thing. People often find they may not even want it anymore.
- Unsubscribe from promotional emails.
- Delete your saved payment methods or credit card information from store apps and shopping sites.
Key takeaways
Retail therapy is when people shop to feel better emotionally. It is often an emotional coping strategy that helps people feel better for a while. Most people do this occasionally as a treat, and it is more of a harmless treat. However, if you’re feeling a strong urge to shop to feel better, or it feels like a “need”, see if the signs apply to you. There are many things you can do instead that don’t cost money. You can also set aside funds in your budget for those impulse moments, since everyone has them sometimes. It becomes a problem when it starts to affect your mental health and/or finances. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt relief strategy could be the right fit for your specific situation.
