Businesses are feeling the pressure to kick off Black Friday sales early as Canadian shoppers are anticipated to scale back their spending this holiday season. This translates to a prolonged promotional period extending from post-Halloween to late December, as reported by the Retail Council of Canada (RCC).
According to Santo Ligotti, the RCC’s vice president of marketing and membership, Black Friday has evolved into more of a season than a single day. He emphasized the importance of retailers continuously offering deals throughout this extended period to attract shoppers effectively. Even small businesses are now jumping on the Black Friday bandwagon to align with industry trends and meet consumer demands.
However, a significant obstacle looms this year as rising prices are prompting people to plan for reduced holiday expenditures. While not reflective of the entire Canadian populace, recent surveys have underscored this spending trend. A survey by the Bank of Canada highlighted that trade uncertainties are significantly influencing consumer spending expectations, leading to a cautious approach.
In light of these circumstances, Ligotti remarked that price reigns supreme this season, with Canadians prioritizing sales, price matching, and discounted purchases. The emphasis on affordability is evident as businesses strive to cater to cost-conscious consumers during the holiday season.
In a bid to appeal to frugal shoppers, some small businesses like Wolf & Rebel, a local gift and homegoods shop in Windsor, Ontario, are rolling out their inaugural Black Friday sales. Annie Vanrivong, the shop owner, noted the challenges posed by increased tariffs, making their products less affordable for many. The one-day sale featuring discounts of up to 50% is aimed at boosting foot traffic and clearing slow-moving inventory.
Similarly, Fanny Vergnolle de Villers, the owner of VdeV, a homegoods and furniture store with outlets in Quebec and Ontario, acknowledges the growing consumer expectations for Black Friday promotions. Despite observing positive sales trends, she acknowledged that customers are adhering to tighter budgets this season.
On the other end, prominent retailers are ramping up Black Friday offers, with many extending their promotions over several weeks to manage the anticipated rush on the actual day. Best Buy and Walmart Canada are among the major players offering extended discounts, aiming to provide customers with a more relaxed shopping experience throughout the holiday period.
Despite the ‘Buy Canadian’ movement, which aims to boost local sales, Ligotti suggested that price considerations continue to outweigh preferences for Canadian-made products. Consumers are prioritizing affordability over national origin, as evidenced by the Bank of Canada’s consumer survey results, where respondents showed reluctance to pay a premium for locally-made goods.
In conclusion, while the holiday sales landscape evolves with changing consumer behaviors and economic uncertainties, businesses are adapting their strategies to cater to price-conscious shoppers and navigate the unique challenges posed by the current market conditions.