Local shopping, resale gain traction as Canadians look for Black Friday bargains

Black Friday, Cyber Monday and their surrounding sales period have delivered a flurry of Canadians to malls and online stores, but at least one tech firm has found their shopping isn't as fervent as last year. Shoppers take advantage of Black Friday deals in Montreal on Friday, Nov. 29, 2024.

Malls across the country are packed with people as Canadians venture out for Black Friday sales.

Discounts have been rolling out for weeks, as the once one-day shopping event has stretched into a month-long cycle of promotions.

A new survey from BMO found that three-in-five Canadians plan to adjust their holiday spending amid tariff concerns and the rising cost of living. Nearly half of respondents said holiday sales and discounts prompt them to spend more, or purchase more gifts, than they initially intended.

“Most shoppers today … are going to be spending, or they anticipate spending at least about what they spent last year,” he said in an interview with CTV News Channel Saturday. “But of course, the challenge is, things are decidedly more expensive this year, and so shoppers are really on the hunt for bargains.”

• Black Friday the ‘pinnacle’ for businesses in a struggling economy

Retail analyst Liza Amlani says retailers know that and are relying heavily on targeted outreach.

“I’m seeing retailer brands lean into personalized marketing to lure customers, either onto websites or into stores,” she said in an interview with CTV News Channel Saturday.

Both analysts say Black Friday has turned into a month of rolling markdowns. Stephens calls it “a pervasive creep in the industry,” where holiday promotions begin almost as soon as Halloween displays come down, and sometimes before.

With more Canadians shopping online and spreading purchases throughout the year, including during Amazon Prime events, he says some holiday spending “may have happened months ago.”

But the trend this year isn’t just about when Canadians shop. It’s also about where.

Stephens says a noticeable share of shoppers is turning away from major U.S. chains in favour of local and Canadian businesses.

“They are basically (avoiding) the large American retailers, both online and offline, in favour of trying to do things locally,” he said.

Amlani says she’s seeing the same thing.

“We’re going to see a little bit more activity in local shopping, local in specialty stores, which is a great thing to see, because we want to see people shopping our own Canadian brands,” she said.

Stephens notes that resale is also surging, with many shoppers seeing it as a way to “save money, but at the same time… save a lot of things from going to a landfill site.”

Amlani cautions, however, that retailers risk training customers to expect perpetual markdowns.

“The more markdowns they have, the more their margins will erode, and the customer will be accustomed to shopping on discount,” she said.

With files from CTV News’ Annie Bergeron-Oliver