Christmas sales beat Santa to it
Boxing Day deals in November?
As the economy continues to wobble, Canadian retailers are offering deeper discounts, keeping stores open longer, and using frequent and sometimes shorter sales to attract whatever holiday shoppers might be in the market this year.
Sears Canada said Thursday it is offering "Boxing Day" pricing on a wide range of items this weekend. For three days only.
Wal-Mart Canada said it’s dropping a "record number" of prices between now and Christmas to help Canadians stay on budget this holiday season.
The retailers cite specific discounts on everything from iPods to cooking sets and clothing.
While the idea of offering Boxing Day deals ahead of Christmas started a few years ago, this could be the first time the term has been used this early in the season, industry analysts said.
They say it’s an indication just how competitive holiday sales could become this year as unemployment remains stubbornly high and consumers worry about future job losses.
"For sure the consumer is very price sensitive and so those who offer the opening price points, the sense there will be good deals, are going to attract more traffic into the stores," said Wendy Evans, president of the retail consulting firm Evans and Company.
The idea is to grab consumers’ attention and an early share of the holiday market "by creating the perception of being very price oriented," Evans said.
Grocery stores, like Loblaw Cos. Ltd., which now sell clothing as well as food, are predicting price competition this holiday season will be fierce. That means department stores, like Sears, "are going to be dragged into the fray," Evans said.
Sears Canada’s chief executive officer Dene Rogers vowed earlier this week to use "aggressive marketing" strategies to boost sales, noting consumers are worried about future employment.
The retailer, which reported Wednesday that sales fell 7.6 per cent to $1.3 billion in the previous three months, wants "to convey to customers that we have the holiday season’s most wanted products at prices that can’t be beat," Rogers said.
Wal-Mart Canada, which said it expects to cut prices on 18,000 items this month, 20 per cent more than last year, said it’s trying to help Canadians make their dollars go further.
The price-cutting comes as a new survey suggests this will be the worst season for holiday shopping since 2005.
Just under six in 10 Canadians say they plan to spend the same amount as they did last year, about one-third plan to spend less and 8 per cent plan to spend more, according to TNS Canadian Facts.
"We often hear talk of so-called cautious optimism. But these results suggest now is a time for cautious negativism. Clearly, the floor hasn’t collapsed but it might be time to start looking for cracks," TNS vice-president and research director Michael Antecol said in a statement.
The Toronto-based research firm’s Consumer Confidence Index now stands at 95.5 points. That’s down 2.5 points since last month and down 3.7 points since August.
The numbers have slipped in all categories, TNS also said. Consumers are less confident about the present and the future and also say they’re less likely to make a big purchase at this time.