2023-12-27 05:00:00
Their wallets eaten away by increases in rent and groceries, consumers are hesitant to embark on an orgy of spending this year on Boxing Day.
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At Sports Experts at Galeries Rive-Nord in Repentigny, around a hundred people were banging their noses on the store’s glass doors at midday.
“It’s going pretty well. The traffic is higher than at the same time last year,” says Nicolas Sauvé-Baril, equipment manager. But if consumers are there, they are spending less than usual, he notes. “Per transaction, people spend less compared to previous years, that’s quite clear,” he says.
Caught by the throat by interest rates which have exploded, many clients have decided to be cautious this year. “Inflation has been felt for two weeks. It was very calm, people were waiting for Boxing Day today,” says Nicolas Sauvé-Baril.
Not a great vintage
“I don’t foresee a great vintage this year. When we count all the figures following the holidays, in my opinion we will be down regarding 10 percent compared to last year,” says Benoit Duguay, professor at Department of Urban and Tourism Studies from UQAM.
Benoit Duguay, professor in the Department of Urban and Tourism Studies at UQAM Photo taken from the UQAM website
This year, a crucial factor comes into play, he notes. The numerous increases in the Bank of Canada’s key rate, in 2022 and 2023, are finally taking effect. “It has a huge impact on the interest paid on credit cards, car purchases, lines of credit and mortgages… With inflation at the grocery store added to that, a lot of people struggle to find adequate housing and food. We have to make very hard choices,” he explains.
All this works once morest Boxing Day. But there is also another side to the coin. “There are people today who are going to travel to see if they mightn’t save on an item or two, in order to save money, since they are tight at the moment. But there aren’t usually a ton of deals like that,” he says.
Long live Boxing Day
If inflation slows down consumer enthusiasm this year, it will not make this unmissable event disappear, underlines Benoit Duguay.
“Consumption is a pleasure. Walking around a store and doing some shopping, as the French say, it’s something festive, it’s in our folklore. We spend Halloween and we spend Boxing Day,” he says.
“We go for a walk on Sainte-Catherine Street in Montreal, not necessarily to buy, but to see the world and the activity that takes place there. Going to a website, clicking and putting it in our virtual basket is not a very intense pleasure…
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