With holiday shopping in full swing, it seems like November outshone December in terms of retail sales.
According to retail expert Bruce Winder, shoppers kicked off their Christmas shopping early this year, with a particularly strong start on Black Friday.
“Winder noted that November showed positive signs for retail, with a reported increase of around 1.5%, factoring in inflation,” he shared.
He explained, “Consumers flocked to major shopping events like Black Friday and the days leading up to it.”
However, Winder predicts that December might not perform as well.
“While there was solid traffic and sales as shoppers held out for bargains, it’s expected that December figures will be softer than usual,” he said. “Many consumers are being cautious with their spending this year, opting for discounted items rather than paying full price.”
Despite this, Winder anticipates a boost in spending during the upcoming Boxing Week sales.
He highlighted the pros and cons of early sales, mentioning, “Starting sales early can help consumers save money, but it can also lead to limited product availability, making it a bit chaotic for shoppers.”
When it comes to shopping habits, Winder pointed out that, despite the rise of online shopping, many people still prefer visiting physical stores, especially older generations over Gen Z.
He added, “While online sales typically make up 10-15% of total retail sales in Canada, this percentage tends to increase during the holiday season due to the convenience and efficiency of online deal-hunting, with some retailers offering same-day delivery options.”
Looking ahead to 2022, Winder expressed concerns about Canadians’ spending behavior after the holiday season.
“It’s likely that consumers will tighten their belts in the new year, especially after overspending during the holidays. The trend of ‘buy now, pay later,’ popular among younger shoppers, may also impact spending habits as bills start coming due,” he concluded.