Boxing Day: A Busy Shopping Day in Canada

Boxing Day, renowned as one of the busiest shopping days in Canada, traditionally sees throngs of shoppers flocking to malls and big box stores in search of enticing deals. This year in Calgary, Hashmeet Singh, the store leader at Best Buy, enthusiastically predicted a surge in customers, estimating that between 8,000 to 10,000 people would visit his store on this festive shopping day.

Challenges for Smaller Businesses

Yet, while major retailers are poised to reap the benefits of the Boxing Day rush, smaller businesses are grappling with significant challenges during this critical holiday season. Judy Weselowski, manager of Book Fair in downtown Winnipeg, reported a stark contrast in customer turnout. “It’s still going to be slow,” she lamented, reflecting the struggles smaller shops are facing.

Disruptions Impacting Retail

The year 2024 has been riddled with disruptions affecting retail operations. Factors such as two significant port strikes, a contentious railway dispute, and a recent Canada Post strike have severely impacted product deliveries during the crucial holiday shopping period. Weselowski noted that delayed shipments, particularly for comics and other products, compounded the difficulties for her small business.

Government Initiatives and Confusion

In response to the mounting pressures on small businesses, the federal government has implemented a two-month GST tax holiday for certain products, starting from December 14 and set to run until February 15. This initiative aims to alleviate some financial strain for Canadians facing the rising cost of living. However, the tax break has led to confusion among both retailers and consumers regarding which items qualify as tax-free. Ryan Gobeil, a sales and service manager at Eliminator RC in Winnipeg, expressed frustration over the sudden changes, stating, “This is completely a curveball in our eyes.”

Shifts in Consumer Behavior

Despite these challenges, retail analyst Doug Stephens anticipates a small but noteworthy shift in consumer behavior this year. He observed a rising trend in gift card sales, suggesting that more shoppers might use these cards with the anticipation of enticing post-holiday sales. “More and more consumers are getting gift cards, and many of those cards are likely to be redeemed today,” he remarked.

Mixed Retail Spending Trends

However, an RBC Economics report highlighted a concerning trend, revealing that retail spending had slowed in November, with holiday shopping below 2023 levels during the Black Friday weekend. Yet, there is a glimmer of hope, as experts predict a slight increase in per capita retail spending in Canada during the fourth quarter—the first uptick since mid-2022.

Looking Ahead

As Boxing Day unfolds, the contrast between thriving chain stores and struggling smaller retailers underscores the uneven landscape of the Canadian retail market. With consumer habits evolving and economic pressures persisting, all eyes will be on how these small businesses adapt in the New Year. Will they bounce back, or will the struggles continue? Only time will tell. Keep your eyes peeled for more updates on this unfolding story!