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

The grads of 2021 at Chemainus Secondary School will be resilient based on their experiences through COVID. (Photo by Don Bodger)
Making the most of grad events

Class of 2021 will carry resilience with them throughout their years based on COVID experience

COVID-19 has made the 2020-21 school year at Chemainus Secondary School interesting and challenging for graduates. (File photo by Don Bodger)
Chemainus Secondary School 2021 graduates

Here’s the young men and women who are embarking on life’s next journey

Girls just wanna have fun. From left: Danielle Dela Cruz, Melanie Cheng, Hanna Starkie, Camille Storteboom, Rebecca Rhode, Sian Diewert and Brianne Pamminger at the Crofton seawalk. (Photo by Alana Starkie)
Prom night brings some semblance of normalcy for 2021 Chemainus grads

Being together at least provides class members with some comfort

Tom Millard served his community well for so many years with the Chemainus Fire Department. (Photo submitted)
Millard dedicated himself to community service

Long-time Chemainus Fire Department member and chief remembered for his commitment

Chemainus Indigenous Peoples Weekend organizer Connie Crocker. (Photo submitted)
Chemainus Indigenous Peoples Weekend online June 19-21

Event’s been in the planning stages since February without knowing COVID implications

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Public Safety Minister Mike Farnworth and Attorney General David Eby attend opening of the first government-run B.C. Cannabis Store, Kamloops, Oct. 19, 2018. (B.C. government)
B.C. government to allow home cannabis delivery starting July 15

Added convenience expected to persuade buyers to ‘go legal’

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

Most Read