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Shopping local may be the desire, but accessibility may decide where shoppers spend their money this holiday season.
While many Canadians have changed their shopping habits this year, boycott American products during the ongoing trade war with the US, reports indicate people focusing on value during the holiday shopping period.
It comes as businesses of all sizes struggle to make ends meet and hope holiday spending will boost profits.
“Seventy-three percent of us want to shop in Canada, and 56 percent of us want to shop local,” said Ed McHugh, a Halifax business professor. “The problem is that the world of online shopping is growing exponentially.”
McHugh said he expects people to buy more thoughtful gifts, such as food baskets, homemade gifts, second-hand toys and clothing. He pointed to Deloitte report this shows that consumers are reducing spending in other discretionary categories by eight percent.
In Cape Breton, the local chamber of commerce is encouraging shoppers to keep their money in the community, given economic uncertainty.
“[Businesses] “So this is the most important time for them to really get that increase in sales and support from the community,” said Megan Penney, CEO of the Cape Breton Regional Chamber of Commerce.
GST holiday not extended
McHugh said he was surprised the federal government didn't return VAT holiday The purpose of the promotion was to support customers during the 2024 holiday season. Certain goods, such as toys, restaurant meals, beer and children's clothing, were sold without VAT.
“I thought so because it seemed to increase sales a little bit,” he said. “So I think the reason it didn't happen is they just didn't want to set a trend of losing that revenue year after year.”
McHugh said a program such as the GST holiday could be more useful this year due to the economic hardships experienced by both shoppers and retailers.
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