As supply chain issues continue to hamper some parts of the economy and shoppers gear up for Black Friday, experts are predicting a rush of in-store shoppers in outlets across the country.
According to Bruce Winder, a Toronto-based retail analyst and author, Black Friday is shaping up to be “very interesting” this year for Canadian shoppers.
As the COVID-19 pandemic took hold over much of the previous year, millions of Canadians were forced to rely on online shopping to fulfil their Black Friday and holiday shopping needs. But that same pandemic also took its toll on the global supply chain, resulting in widespread shortages particularly for retailers selling electronics.
But would the 2021 global supply chain crisis, and its increased possibility for shipping delays, move even more people to physical locations instead of keeping to the online storefront? Winder and other experts suggest that its likely, but that there’s also the addition of customers feeling the itch to come back after a virtually non-existent year of in-store browsing and buying.
“So people want to get out there; they’re tired of staying indoors,” said Winder.
“The novelty of shopping is still alive and well and people want to get out there, have some fun and shop.”
That sentiment to return to normal indoor shopping is one that’s shared very strongly by Canadians, according to those at the Retail Council of Canada (RCC).
According to the organization’s annual holiday shopping survey of over 2,500 Canadians from coast to coast, many more Canadians are feeling “much more optimistic” this year when it comes to shopping.
5:57 Warning signs you’re in over your head financially
Warning signs you’re in over your head financially
“They have a strong desire to return to a more normal holiday traditions,” said Michelle Wasylyshen, a spokesperson for the RCC.
“We’re in a very different situation this year — we have vaccinations, we have stores that have had now over a year to have their safety protocols in place. We have removal of the more aggressive restrictions that were taking place in many regions across Canada.”
The survey also found that the majority Canadians were planning to shop much earlier this year in order to take advantage of holiday sales and product availability, with 36 per cent planning to begin their holiday shopping in November and as many as 30 per cent having already begun their shopping before that month.
And while Winder and the RCC both pointed to the impending influx of in-store shoppers tomorrow, both were quick to not entirely discount the impact the global supply chain snaggle would have on the availability of certain products and items.
“People realize this, a lot of media coverage of supply chain issues, and if you’re a consumer, you’re thinking you better get out there now or get online now and take advantage of this,” said Winder.
Wasylyshen said that the RCC’s message to consumers this years has been to “shop earlier and be flexible.”
“There is still going to be an impact, we know that certainly in some retail categories, there’s going to be a more difficult time this year getting product,” said Wasylyshen.
However, the depth of any such holiday discount — and product availability — is expected to be greatly influenced by the size of the individual retailers themselves.
4:19 Ask an Expert: Black Friday shopping
Ask an Expert: Black Friday shopping
Huge retail giants like Amazon and Walmart have been preparing for Black Friday over the course of the year and already have “amazing” supply chains in place allowing them to offer deep discounts and offload more inventory, according to Winder.
On the other hand, smaller brick and mortar stores may offer less of a markdown in comparison and are more likely to have a “spotty” inventory coupled with inflation.
According to University of Toronto marketing professor David Soberman, Black Friday will have a lot to do with “three forces” coming together at once: “pandemic fever,” supply chain issues and a major push from Canadian retailers to take advantage of the day itself.
“I just think there’s going to be a lot more shopping than there was last year for sure. And, you know, time will tell whether it’s going to be at pre-pandemic levels,” he said.
When asked whether there were worries boiling over a larger than expected crowd of shoppers tomorrow at shopping centres across the country, several of Canada’s largest retail investment and development companies said that measures have been put in place to keep shoppers safe.
4:15 Black Friday spending tips
Black Friday spending tips
Senior vice-president of Cadillac Fairview Tom Knoepfel said that “additional” measures have been introduced in their malls, while William Correia, director of Yorkdale Shopping Centre, said that they’ve extended Black Friday shopping hours.
Knoepfel, who referenced the results of the RCC survey, said that Canadians were going to spend more on holiday shopping and visit more brick-and-mortar stores this year.
“We’re hopeful this means traffic will be increased at our shopping centres over the holiday season, but we do not anticipate the same levels as years prior to the pandemic as shoppers are expected to start their holiday shopping early,” he said.
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.
The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs
It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.
The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.
Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.
Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.
This report by The Canadian Press was first published Oct. 22, 2024.
