Businesses are feeling the heat to kick off Black Friday sales early as Canadian consumers are anticipated to scale back spending this holiday season. This translates to a continuation of the trend seen in recent years, with businesses elongating their promotional periods to encompass deals from post-Halloween until late December, as stated by the Retail Council of Canada (RCC). According to Santo Ligotti, RCC’s vice president of marketing and membership, Black Friday has evolved into more of a season than a singular day.
Retailers are adapting by extending offers throughout this period to attract shoppers continuously. In an effort to align with industry giants and meet consumer expectations, even small businesses are now rolling out Black Friday promotions. However, the current challenge lies in rising prices, leading people to plan for reduced holiday expenditures. While not reflective of the entire Canadian population, various recent surveys underscore this spending trend.
One recent Bank of Canada survey revealed that trade uncertainties are significantly impacting consumer spending expectations. Ligotti emphasized that price reigns supreme this season, with Canadians prioritizing sales, price matching, and discounted purchases. Small businesses, like Wolf & Rebel, a local gift and homegoods shop in Windsor, Ontario, are joining the Black Friday bandwagon to appeal to cost-conscious consumers.
Shop owner Annie Vanrivong noted the necessity of offering discounts due to price increases affecting affordability for many. While the one-day up to 50% off sale might not substantially boost profits, Vanrivong hopes it will drive foot traffic and clear slow-moving inventory. Similarly, Fanny Vergnolle de Villers, owner of VdeV homegoods and furniture stores in Quebec and Ontario, acknowledged the shift towards Black Friday sales to meet customer expectations.
Major retailers are also ramping up discounts, with Best Buy and Walmart spreading their promotions over several weeks to alleviate congestion and cater to early shoppers. Walmart Canada reported offering early Black Friday sales with discounts up to 35% off, signaling a strong start to the holiday season. Despite the Buy Canadian movement, Ligotti highlighted that price remains the primary factor influencing purchasing decisions, aligning with consumer sentiment revealed in recent Bank of Canada surveys.
While the preference for affordability persists, Vergnolle de Villers expressed hope that Canadians would support local brands. She emphasized the value of even a small portion of spending directed towards Canadian products. The evolving landscape of Black Friday sales reflects a strategic shift among businesses to adapt to changing consumer behaviors and market dynamics.