Inflation and long sales season slow Black Friday shopping

2023-11-24 16:28:11

While many shoppers flock to malls to hunt for Black Friday deals, Dianne Debarros will be on the lookout for discounted toys and laptops that her children will soon need for school.

The Sarnia, Ont., resident has already started her Christmas shopping, but wants to complete her purchases by visiting Real Canadian Superstore, where the chain is giving out loyalty points in exchange for $100 in purchases in some of its departments.

“I feel like in recent years the sales and prices were not very good, but this year the prices seem reasonable and the incentives are there,” observed M^me Debarros. She and her partner, Tom, run a bargain-hunting social media account on Instagram and TikTok.

The pre-Christmas mega sale will be particularly welcomed by Canadians who are feeling stressed about money this year.

Inflation remains above the Bank of Canada’s 2% target, keeping prices high for household goods and major purchases even as interest rates rise causes many homeowners’ mortgage payments to inflate.

The combination of factors is encouraging more Canadians to look for deals and even reduce their holiday spending.

Planned spending down

Deloitte predicts that the average Canadian shopper will spend $1,347 this holiday season, down 11% from last year.

About half of the more than 1,000 Canadians surveyed by the consulting firm plan to buy only what their family needs this holiday season. Some 71% will look for items on sale and 29% will opt for cheaper retailers to shop.

“Canadians are really looking to maximize their dollar,” said M^me Debarros.

Together, the couple give tips on how to save money on purchases, making Black Friday a special time of year.

However, this day hasn’t always been one of the biggest shopping opportunities.

Its origins date back to the 1960s, when people flocked to Philadelphia for the American Thanksgiving and an annual military football game held in the city. Police officers had to work long hours and deal with an influx of sometimes rowdy visitors, prompting them to start calling the period Black Friday.

Retailers — hoping to attract customers — eventually adopted the name and began using the date to offer sales. Over time, Black Friday sales have expanded across the country and, more recently, Canada.

Sales for longer

Now, it’s so common for stores to offer Black Friday sales that many have extended the practice into November.

But some argue that the longer nature of the sale period has made the day itself less important to Canadians.

“Black Friday has lost its luster,” lamented Nick Muriella, vice president of merchandising and supply chain at Toys’R’Us Canada.

His sighting came a week before Black Friday. At that time, many stores had already been offering discounts since the beginning of November. He therefore concluded that Black Friday had “just become another way of saying sales”.

Staples Canada began sales on 1^is November because she noticed consumers were shopping earlier.

“They’re really trying not to leave at the last minute,” said Rachel Huckle, president and COO of the retailer.

“What many customers have told us is that when they go to the last minute, they usually rush and therefore make decisions that they would not have made at a certain price point, frankly in desperation. »

To alleviate some of that rush, the chain has introduced guarantees that some of its products won’t see their prices drop further during the holiday season, so shoppers can feel confident in their purchases.

Despite extended sales and warranty, M^me Huckle still expects to see people filling his company’s stores on Friday, as many consider that to be the day they will step up their shopping.

Others, she said, will be “creatures of habit.”

“I still think we’re going to have those who are last minute, who will continue to shop throughout the season. »