Expect this coming holiday season to be rife with deep sales, lower inventory and sullen-looking store managers. Experts predict a disappointing shopping season due to the recession that just won’t let up. According to Deloitte’s Annual Holiday Survey of retail spending and trends, 40 percent of Canadians said they will spend less this year. Residents in Vancouver and Toronto plan to be especially thrifty compared to other areas.
Blame the economy. Statistics Canada reports that between October 2008 and October 2009, “total employment declined by 400,000 or 2.3 percent, while the unemployment rate rose from 6.3 percent to 8.6 percent.”
Retailers say consumers should expect lower inventory stocks, meaning that popular items may be harder to find. But, on a positive note for shoppers, more stores are debuting sales earlier than usual in order to ramp up interest for their products. Both Sears Canada and Wal-Mart announced they would be offering sales in the coming weeks on products ranging from iPods to cooking sets to clothing.
Rajiv Mathur, partner and leader of consumer business practice at Deloitte, said in an interview he’s noticed other trends: “Some stores are debuting invitation-only events, or free shipping, all in the hope of enticing consumers.”
He added, “Retailers need to be creative in order to woo shoppers this holiday season.”
Also, today StatsCan revealed consumer prices rose after registering a 0.9-percent drop in September. The monthly rate advanced 0.4 percent, marking the fifth gain in six months. The Canadian inflation rate edged up 0.1 percent last month, the first increase in five months — consumers paid more for food, furnishing and tuition.
