Shoppers take advantage of Boxing Day deals at the Rideau Centre in Ottawa, Thursday, Dec. 26, 2019. THE CANADIAN PRESS/ Patrick Doyle

Shoppers take advantage of Boxing Day deals at the Rideau Centre in Ottawa, Thursday, Dec. 26, 2019. THE CANADIAN PRESS/ Patrick Doyle

Boxing Day’s shot to return to its ‘glory days’ stymied by lockdowns: Retail experts

The spending spree will likely be a ‘sad’ and ‘lacklustre’ shell of its usual self

Canadian retailers are expected to offer deep discounts this Boxing Day in a bid to entice shoppers to buy up leftover holiday and seasonal goods and raise enough cash to endure the latest round of pandemic restrictions.

Yet despite the rush of slashed prices and promotions already rolling out, industry watchers say the post-Christmas shopping spree will be subdued as Ontario’s new lockdown takes effect, pushing sales in the country’s most populated province almost entirely online.

“I think we’re going to see a ton of deals and some fire-sale prices,” says Farla Efros, president of HRC Retail Advisory.

“There is going to be so much excess inventory that they’re just trying to get rid of” she says. “They also need cash. It’s all about the balance sheet.”

Still, Efros, who served as interim CEO of U.S. fashion brand True Religion in 2019, says the spending spree will likely be a “sad” and “lacklustre” shell of its usual self.

Boxing Day, historically the country’s biggest sales event, is a holiday shopping bonanza that usually sees massive crowds descend on malls and main streets the day after Christmas in search of deals.

It has been increasingly overshadowed by Black Friday, which falls the day after the U.S. Thanksgiving holiday, as shoppers check gifts off holiday lists early.

A holiday retail report by Deloitte Canada says the American shopping event has become “an entrenched part of the Canadian shopping landscape” in just a few years. A JLL Canada holiday survey also found that 16 per cent of Canadians planned to seek out Boxing Day deals, compared to 29 per cent on Black Friday.

Amazon added another rival to Boxing Day this year when it moved its Prime Day to mid-October, pushing the unofficial start to the holiday shopping season even earlier.

Despite the increasing competition for holiday dollars, retail experts say there is a glimmer of hope that Boxing Day could regain some of its former prominence this year.

“Canadians weren’t able to cross the border into the U.S. for Black Friday to get some of those deeper discounts, so it could have been a great year for Canadian retailers to get back a little bit of the glory days of Boxing Day,” says Tandy Thomas, an associate professor in the Smith School of Business at Queen’s University.

“But all those plans have been tossed out the window.”

While widespread retail closures will be in effect in Ontario, Quebec and Manitoba on Boxing Day, other provinces have strict capacity rules curtailing how many shoppers can be in stores, dissuading some from venturing out altogether.

The restrictions are expected to lead to a largely online Boxing Day, similar to Black Friday.

“The big retail story this entire year is about online shopping and that will continue on Boxing Day,” Thomas says. “The key is going to be for retailers to figure out how to attract customers to their websites and encourage them to spend.”

She says Boxing Day is one of the few times of the year when “consumers are primed to shop” and some people have been waiting for the sales event to spend money.

“We have a bit of a bimodal situation where some people are desperately struggling with incomes severely impacted by the pandemic while others have been accumulating savings and are looking to spend money,” Thomas says.

Still, retail observers say even shoppers who want to spend cash will expect steep markdowns and promotions before clicking to buy, and stores will likely step up and offer what consumers want in a bid to clear out stock.

“People are buying a lot of gift cards this year and not the traditional wrapped gift so there’s an excess of inventory and some pent-up demand,” says Lisa Hutcheson, managing partner at consulting firm J.C. Williams Group.

“We’ll likely see a high level of redemption of gift cards on Boxing Day.”

Fashion retailers, among the hardest hit during the pandemic, will likely offer big sales on apparel and footwear, she says, noting that many stores began rolling out Boxing Day promotions in the week leading up to Christmas.

“I think we’ll see a Boxing Day rush, but I think sales will also be stretched out a bit,” Hutcheson says. “We’ll likely see another surge in deals when things reopen because retailers don’t want to get stuck with aged goods like holiday and seasonal apparel.”

She adds: “For retailers, it’s the balance of needing cash and also liquidating inventory that hasn’t sold.”

Other items in categories like sporting goods and hobbies or home cooking could be harder to come by with fewer sales on offer, Hutcheson notes.

“If you go into a Canadian Tire some of the sporting goods shelves are empty,” she says. “We could see some of the shortages we saw during the first wave of lockdowns.”

Brett Bundale, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

HolidaysRetail

Just Posted

People had a chance to interact with different animals at the petting zoo, participate in mutton busting, and buy everything local during the Fall Fair held in 2019. (Aman Parhar/Omineca Express)
55th Fall Fair in Vanderhoof cancelled

Alternative events eyed once again

Grads at Riverside Park in Vanderhoof, B.C. (Aman Parhar/Omineca Express)
Vanderhoof celebrates 2021 graduates

NVSS grads got together at Riverside Park on Friday, June 11 in… Continue reading

Singing and drumming was heard in downtown Vanderhoof on Monday, June 14. (Aman Parhar/Omineca Express)
Photos: Honour Walk held in Vanderhoof

An honour walk was held Monday June 14 in Vanderhoof, remembering the… Continue reading

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.’s Indigenous language, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Green party Leader Annamie Paul speaks during a news conference on Parliament Hill in Ottawa on Tuesday, June 15, 2021. Paul has survived another day of party strife after a planned ouster shifted course, leaving her with a tenuous grip on power ahead of a likely federal election this year. THE CANADIAN PRESS/Justin Tang
Green Leader Annamie Paul blasts ‘racist,’ ‘sexist’ party execs who sought ouster

Fallout has continued, with two of the federal council’s members resigning

Provincial health officer Dr. Bonnie Henry says re-opening B.C.’s border to the U.S. ‘is not in our best interest’ right now. (B.C. Government photo)
Provincial health officer Dr. Bonnie Henry (B.C. Government photo)
B.C. records 113 new COVID-19 cases Wednesday, 4 deaths

Vaccination of young people rising quickly, near 75 per cent

Most Read