The holiday season is a crucial time for businesses, but Canadian shoppers are being pushed away by various factors. The general consumer malaise, high cost of living due to inflation and interest-rate hikes, the ongoing Canada Post strike, and the Black Friday discount bonanza falling later in the calendar than usual this year are contributing to price-sensitive shoppers looking for deals. Retailers in Canada are nervous about this holiday season, as they expect a hot post-Black Friday shopping season and must fight extra hard to get their share.
Deloitte Canada predicts that Canadians will spend an average of $1,478 this festive season, a 10% increase compared to last year but still well below pre-pandemic spending. Gift spending is predicted to rise just 4%, only modestly outpacing inflation. Retailers have been responding by advertising their discounts and starting early, such as Altitude Sports advertising Black Friday pricing on over 3,600 products on its website with a price-matching guarantee.
Retailers do not want shoppers to wait, as healthy sales volumes earlier in the season give companies more certainty and a “smoother sales curve” is more cost-efficient than processing a massive surge of orders during the few days between Black Friday and Cyber Monday. The draw of discounts is significant, as Altitude also operates a clearance sales website called the Last Hunt, which has outpaced the larger website in recent years, indicating how price-sensitive Canadian consumers have become.
In conclusion, the holiday season is a challenging time for retailers in Canada, as price-sensitive shoppers are looking for deals and businesses must compete to attract customers. Retailers are working hard to attract consumers and maintain a healthy sales curve to ensure a successful holiday season.
Source: Globe and Mail
