What does that mean for investors?
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In the wake of what promises to be a frenzied Black Friday, an email marketing outfit is launching… It has since become by far the biggest online shopping day in the country, and the second biggest shopping day in the world.
The growth in online sales doesn’t exclude traditional retailers.
SAS also suggests that despite the rise of online shopping, many still crave the brick and mortar experience, with 82 per cent of Canadians indicating they will shop in-store.
However, strong cyber sales haven’t offset an overall decline in sales over the four-day period, LPL found.
Retailers are extending shopping hours and offering discounts for Black Friday, the day after American Thanksgiving, and a traditional work day for most Canadians, but only a few retailers are expected to benefit.
Black Friday promotions do seem to be aiming more at electronics and appliances, Statistics Canada concluded. “That wouldn’t have been said five or 10 years ago in Canada”.
“The timing of new product releases related to toys, games and hobby supplies (such as electronic games) have increased the portion of total annual retail sales for November”, Statistics Canada said.
There are a few reasons for the increase in gross profit margins despite discounted prices, LPL found. First, suppliers may be absorbing some of the impact, as many retailers negotiate lower prices.
New research from market research firm SAS suggests that, while the prevalence of Black Friday and Cyber Monday are on the rise, Canadians are planning to spend less this holiday season than the previous year, with 1 in 5 surveyed saying they will buy less.
“We expect Cyber Monday to again be a double-digit increase year over year”.
“As Black Friday continues to gain momentum north of the border, retailers will be forced to participate in the price slashing to meet consumer expectations, especially among Millennials who are most likely to shop south of the border”.
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If you plan on braving the crowds for Black Friday sales, be careful: 34 per cent of Canadians say they’ve witnessed physical altercations over items sold on Black Friday.
