Despite record revenue across North America over Black Friday and Cyber Monday, PwC believes Canadian consumers are being frugal this Christmas season because of spending and debt concerns.
Alain Michaud, PwC’s Canadian retail and consumer leader, said “While sales last weekend proved to be a strong start to the holiday shopping season in the U.S., it could also be a sign that consumers want to secure the absolute best prices in a difficult economy -sales for the U.S. Thanksgiving weekend were also a record-high during the 2008 recession.”
Statistics Canada reported that retail sales for the nine-month period ended September 30, 2011, were up 3.6% when compared to last year.
However, excluding sales from motor vehicles, parts dealers and gasoline stations, the increase is only a 0.6%.
“Canadians are shopping wisely and looking for value,” said Michaud.
Some Canadian retailers capitalized on retail phenomenon like Black Friday and Cyber Monday by increasing their in-store and online promotion levels.
According to Michaud, what retailers need to consider the growing trend of consumers either buying online with free shipping offers or shopping for better deals across the border.
Foreign retailers also continue to tap the Canadian market.
“It is a challenging market, retailers need to operate their business efficiently and provide consumers with what they are asking for: good value and flexibility.”
“Although it’s difficult to draw a conclusion on consumer confidence solely based on last weekend’s sales, one thing is clear, the level of online activity is increasing,”
“Shoppers are in control, they are informed, they want to know what other consumers are buying, compare pricing to get the best deal and want to have the ability to buy when and wherever they want.”
Jennifer Harrison
@JHarrisonBIV