Amid high interest rates, inflation and decreased consumer spending, Canadian retailers have their work cut out for them trying to get people to make purchases this Black Friday, according to experts.
Bruce Winder, retail analyst and author, told CTV News Ottawa Thursday that Canadians are spending more on things like travel and less on goods like apparel and electronics, the kinds of items that are often heavily discounted on Black Friday.
He added seasonal hiring is down by about 30 per cent in Canada, which could indicate that retailers are not anticipating a lucrative sales season.
His comments come as inflation remains above the Bank of Canada’s two per cent target, keeping prices high for household goods and large purchases, even as higher interest rates are causing many homeowners’ mortgage payments to balloon.
Deloitte says it expects the average Canadian shopper will spend $1,347 this holiday season, down 11 per cent from last year. Roughly half of the more than 1,000 Canadians the consultancy company surveyed plan to buy only what their family needs this holiday season. Seventy-one per cent will seek items on sale and 29 per cent will seek less expensive retailers to shop at.
Ian Lee, associate professor at Carleton University in the Sprott School of Business and former banker, told CTVNews.ca Friday businesses consider Black Friday extremely important because of increased sales, and as consumers dial back retail spending, the importance of Black Friday increases.
“Black Friday is an antidote, if you will, that has the affect of offsetting the negative trend of increasing interest rates and inflation. So it’s a boon and a benefit to retailers to have Black Friday sales to get people shopping again,” Lee said.
He added in his recent personal experience he’s noticed some businesses using different discount strategies this year, possibly in an effort to draw more customers this weekend.
“I don’t have hard trend data … But it seems to me that retailers are moving away from sort of slashing 20 per cent to 30 per cent off across the board, they are using a lot more of—what I would say—targeted sales. They are offering sales on maybe five or 10 or 15 products but they’re offering a very significant price reduction,” he said.
Winder said during tough times it’s important to create a budget and stick to it, and when you see something you want that is heavily discounted, do some research and make sure the deal is as good as it appears.
“Comparison shop to make sure you’re getting a good deal and keep within your budget don’t over spend,” Winder said. Lee agrees, he stressed the importance of comparing prices between stores when bargain hunting, especially when it comes to electronics.
“Because of the tough times we’re in … I believe what we’ll see once the data is in three or four months from now, that a good number of consumers moved their Christmas shopping forward—because you’ve still got to do shopping for Christmas—and they moved it forward to Black Friday to get really good deals, but they won’t be shopping as much at Christmas time.”
Lee predicts it is unlikely people will spend big during Black Friday sales and then continue to spend the same large amounts during the holiday season.
“I think it’s going to be much more constrained,” he said. “People have really dialed back on retail spending … and that’s how people are coping with this period that we’re in right now, these are the strategies that individuals are using, they’ve dialed back on their discretionary purchases.
“Of course you continue to make your mortgage payment, you continue to make your rent payment, you pay your utility bills—but anything discretionary, you know, clothing expenditures or electronics are being cut back and postponed, and people are doing that because they have less money.”
Asked whether the pandemic has influenced the way people think about gift giving, especially under tight financial circumstances, Winder said he expects people to do things a bit differently this year.
“I think more people are going to do what they call a ‘Secret Santa’ where you buy for one person versus everyone,” Winder said. “I think that people are going to make more gifts, I think they may even thrift some gifts believe it or not, and just spend a little less but try to enjoy the moment.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
