Businesses are being forced to participate in Black Friday sales and start them early as Canadian shoppers are expected to cut back on sales this holiday season.
This means more than what we've seen in recent years: Companies are expanding their promotions to offer special deals after Halloween through the end of December, according to Retail. Council of Canada (RCC).
“[Black Friday] now it feels more like a season than a day,” said Santo Ligotti, vice president of marketing and membership at RCC.
“Smart retailers will continue to offer offers during this period to continue to attract [shoppers]”
And for some smaller stores, to keep up with the larger industry and meet consumer expectations, they are now offering Black Friday. transactions.
But this year has brought with it a major problem: rising prices are causing people to plan to spend less this holiday season. Although some are not representative of the entire Canadian population, recent polls highlight this trend.
One recent survey The Bank of Canada also found that all the uncertainty surrounding trade actions weighs heavily on consumers, “significantly lowering their spending expectations.”
Because of all this, RCC's Ligotti said price is a factor this season.
“Price is the main filter for Canadians. They wait for sales, price comparisons and buy at a discount,” he said.
Small businesses are preparing for Black Friday
In an effort to get an eye on people's wallets, some small businesses, like local gift and home goods store Wolf & Rebel in Windsor, Ontario, are holding their first Black Friday sale.
“Because of the tariffs and everything, our prices have gone up and I think they're not as affordable for most people,” said store owner Annie Vanrivong.
“People have a hard time paying for groceries. So coming to a place like ours, I feel like it's a luxury, like buying these little trinkets.”
Vanriwong says a one-day discount of up to 50 percent won't make much profit for her, but she hopes it will increase traffic to her store and allow her to sell items that aren't flying off the shelves.
Homewares and furniture store owner Fanny Vergnolle de Villers of VdeV says this is her second year running a Black Friday sale, but she understands that's what shoppers expect these days.
“People seemed to be disappointed if we didn't do anything, they really expected something because the bigger companies are doing it,” Vergnolle de Villers said.
While she said sales at her three stores in Quebec and Ontario are going well, she said she's noticed customers are “on a tighter budget.”
Some major retailers offer higher discounts
Major stores have been diving into Black Friday for years, but lately many of them have been spreading out their promotions—what used to last one or two days now lasts for weeks.
Best Buy, which typically has lines on Black Friday, says its goal in promoting deals for several weeks is to reduce congestion at stores during the day.
This year, Best Buy Canada said sales began on November 3, which is around the same time as last year. Central Store Manager Joe Colucci says that while Best Buy's lowest deals can be found through Nov. 28, the company will have discounts through the New Year.
“We're trying to give customers a little space so they can come in and shop a little earlier,” Colucci said.
Meanwhile, Walmart says it is offering better deals than last year but expects sales to remain strong over the next few weeks.
“[The] The holiday is off to a pretty good start,” John David Rainey, executive vice president and chief financial officer of Walmart Inc., said in the company's latest earnings report.
“Everything we've seen so far makes us optimistic and encourages customers and members looking to enjoy seasonal activities and the holiday shopping period.”
Walmart Canada said it began offering early Black Friday sales a few weeks ago and that shoppers can expect discounts of up to 35 per cent and higher discounts on certain products.
“I think there is something for everyone in the family and for every type of budget,” said Morgan Ferris, Walmart Canada vice president of merchandising for entertainment, electronics and toys.
What about Buy Canadian?
As for whether the Buy Canadian movement could help boost sales at smaller stores, RCC's Ligotti said sentiment appears to have softened since the start of the year.
“If they're going to push Made in Canada or Canadian products, then as we've heard from Canadians now, it's still a question of price,” Ligotti said.
And this is in line with a recent report from the Bank of Canada. consumer surveywhich found that many respondents said they were not willing to pay more than 10 percent for a product made in Canada.
Despite this, small business owner Vergnoles de Villers hopes Canadians will dedicate part of their budget to local brands.
“At least if people make the effort to complete 10 percent of their purchases or even just one or two things that you buy, that's already very valuable,” she said.
