There is some optimism in the tea leaves this holiday season even as high prices and interest rates pinch the pockets of Ontarians – that’s the message from industry experts.
CTV News Toronto spoke to retail, travel, agriculture and food specialists to find out what consumers need to know as the advent calendar ticks down in days.
Here’s their insights and tips.
RETAIL
The retail industry is looking “cautiously optimistic” this holiday season, Lisa Hutcheson, Managing Partner of Toronto-based J.C. Williams Group, said.
In large part, she said that’s because consumers are spending differently than in previous years, taking advantage of deals and discounts.
She pointed to Black Friday and Cyber Monday results – up more than seven per cent and almost 10 per cent respectively – as a testament to this.
Customers are factoring in inflation when they look for deals, she added, with the Bank of Canada holding its key interest rate steady at five per cent on Wednesday.
“[They are] proactively looking at ways to get the most value for their dollar,” Hutcheson said.
Eighty-three per cent of 1,507 Canadians surveyed by consulting firm KPMG between Oct. 20 and Nov. 2 said they are being more cautious about spending money this year compared with last year.
Hutcheson’s message: “As a consumer, if you see something that fits within your budget, you should buy it.”
TRAVEL
Like the retail industry, there’s a sense of optimism when it comes to travel this holiday season, Barry Choi, a Toronto-based personal finance and travel expert, said.
“We’re seeing overall record demand. I’m hearing numbers exceeding pre-pandemic,” he added.
While travel is very expensive right now, Choi said even families cutting back are prioritizing travel as a luxury expense they are willing to splurge on.
To save on travel, Choi recommends planning as far out as possible, flying between Tuesday and Thursday and taking night flights, which tend to be cheaper than mornings.
“The demand for travel is clearly back,” Choi said.
CHRISTMAS TREES
Christmas tree prices in Canada are up five per cent compared to last year, according to Shirley Brennan, Executive Director of Christmas Tree Farmers of Ontario.
“That is solely because the cost of running farms has gone up,” Brennan said.
She listed the high cost of fertilizer, insurance, hydro and labour as a handful of reasons for the uptick in agricultural costs.
As a result, she said there has been an increase in the sales of smaller trees. “There is a price point for everyone,” she said.
Brennan encourages consumers to step outside of their comfort zone to explore different species, sizes, and prices this year.
FOOD
Traditional holiday dishes may need to stay on the backburner this season, according to a new report by Dalhousie University’s Agri-Food Analytics Lab.
In particular, the cost of turkey is up five per cent, potatoes are up 6.6 per cent and carrots have risen 12.8 per cent.
The report lists adverse weather, geopolitical events, and labour disputes as some factors driving up the cost.
However, the lab points out that big meals also mean leftovers, which in turn lowers the overall per-person cost of a meal to about $9.48.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
