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 Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Alberta reports 100 new cases of COVID-19

The Central zone sits at 218 active cases

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Police officers and their dogs undergo training at the RCMP Police Dog Services training centre in Innisfail, Alta., on Wednesday, July 15, 2015. Mounties say they are searching for an armed and dangerous man near a provincial park in northern Alberta who is believed to have shot and killed a service dog during a police chase. THE CANADIAN PRESS/Jeff McIntosh
RCMP search for armed man in northern Alberta after police dog shot and killed

Cpl. Deanna Fontaine says a police service dog named Jago was shot during the pursuit

Alberta now has 2,336 active cases of COVID-19, with 237 people in hospital, including 58 in intensive care. (Black Press file photo)
Red Deer down to 73 active cases of COVID-19, lowest since early November

The Central zone has 253 active cases of the virus

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

Most Read