Stores in Canada are preparing for Boxingy discount, with many deals rolling out soon in hopes of appealing to budget-conscious shoppers.
Canada’s promotional retail event has been overshadowed in recent years by its American counterpart, Black Friday.
But experts say sales on Black Friday and Cyber Monday late last month fell short of expectations, causing some stores to run out of stock before the end of the season.
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Retail analyst Bruce Winder said stores will try to balance the need to sell inventory with maintaining profitability.
The larger the discount, he said, the more stores are likely to sell, while the smaller discount keeps margins higher but risks leaving stores carrying excess merchandise they need. be packed away.
Winder says this can increase labor costs and deplete working capital.
However, the Retail Council of Canada national spokeswoman, Michelle Wasylyshen, says that most retailers aren’t overly concerned with inventory levels – at least to the extent some analysts suggest.
She says the message that stores are overstocked may be part of the reason for the lackluster Black Friday and Cyber Monday sales, which she calls “best not to.” evenly”.
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“The general feeling is that consumers are waiting for better deals, because they have heard in the media that retailers have too much inventory, or because they have to belt their belts,” Wasylyshen said. austerity due to the higher cost of living”.
She said stores are entering Gift Day and year-end with “cautious optimism”.
“The Boxing Day event is a welcome opportunity for retailers to plan promotional events in advance and review their inventory levels to see if in-store sales events or online is needed to help eliminate excess inventory.”
Like Black Friday, she added that Gift Day has become a week-long event, with fewer in-person sales that used to be the epitome of sales day.
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