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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

These women were featured in the 2020 edition of the Women of Inspiration special feature. (Review file photo)
Revelstoke Review calls for nominations of inspiring women

The 2021 Women of Inspiration special section is coming up on March 4

Amanda Parsons, a registered nurse on staff at the Northwood Care facility, administers a dose of the Moderna vaccine to Ann Hicks, 77, in Halifax on Monday, Jan. 11, 2021. THE CANADIAN PRESS/Andrew Vaughan-Pool
61 new COVID-19 cases, two more deaths in Interior Health

Twenty-nine people are in hospital, seven of whom are in intensive care

Cody Younker was sworn in as a city councillor in 2018. (File)
Revelstoke city councillor requests leave of absence in wake of sexual assault allegations

Cody Younker is accused in civil court of sexual abusing a teen in 2014

Cody Younker, Revelstoke city councillor. (Jocelyn Doll/Revelstoke Review)
Revelstoke councillor accused of sexually abusing Langley teen while school chaperone

Lawsuit alleges Cody Younker sexually abused student while volunteering on school trips

Revelstoke doctor Vikki Haines receives a vaccine for COVID-19. (Photo via Facebook)
COVID-19 vaccines come to Revelstoke

The Selkirk Medical Group were the first to announce that team members had been vaccinated

Charlotte is one of the resident pigs at Star's Piggly Wiggly's Sanctuary near Kelowna. (Twila Amato - Black Press Media)
Kelowna-area pig sanctuary needs a new home

Star’s Piggly Wiggly’s Sanctuary is looking for properties in Vernon, Coldstream, and Enderby

Inspection of bridge crossing on a B.C. forest service road. (B.C. Forest Practices Board)
B.C. falling behind in maintenance of forest service roads

Auditor finds nearly half of bridges overdue for repair

A cow moose wanders around the Silver Star Elementary School neighbourhood Tuesday, Jan. 19. (Contributed)
Public provoking blamed for moose chasing Okanagan residents

‘The problem is people are bugging it’ conservation officer

(Black Press Media files)
Woman steals bottles of wine after brandishing stun baton in New Westminster

Police say the female suspect was wearing a beige trench coat with fur lining

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Stand up paddleboarder Christie Jamieson is humbled to her knees as a pod of transient orcas put on a dramatic show on Jan. 19 in the Ucluelet Harbour. (Nora O’Malley photo)
UPDATED WITH VIDEO: Vancouver Island paddle boarder surrounded by pod of orcas

“My whole body is still shaking. I don’t even know what to do with this energy.”

Ladybug Landing Child Care Centre in Salmon Arm remains open as one person who was at the facility tested positive for COVID-19. (Lachlan Labere/Salmon Arm Observer)
Salmon Arm daycare owner upset by rumours related to positive COVID-19 test

Ladybug Landing’s Leigh-Anne Chapman impressed by response from Interior Health

The proposed Skaha Lake Road housing project will be modelled after the Burdock House on Winnipeg St., said BC Housing.
BC Housing panel peppered with questions about Skaha housing project

Virtual meeting involved questions about crime, level of supports, timelines

Most Read