Shoppers spending less this Black Friday amid inflation, experts say

Busy Black Friday in the northeast Foot traffic was heavy at the mall in Sudbury for Black Friday but experts say people are spending less. Amanda Hicks explains.

Black Friday is a day when shoppers typically hit the stores to get ahead of holiday shopping or take advantage of some exceptional deals – but some say fewer people are opening up their wallets this year.

There was a packed parking lot a the New Sudbury Centre through Friday as many looked to take advantage of some of those exceptional deals.

Shoppers who spoke with CTV News said they were there to check out the deals.

Retail Analyst Bruce Winder says consumers are looking for ways to reduce spending this year but doing things like thrifting for gifts or participating in ‘Secret Santas’ to only have to buy one gift.

He told CTV News more people are choosing to shop online than in-person – but there are a lot of reasons why fewer people are opening their wallets this year.

"Based on inflation being sticky, interest rates being highest in 20 years. There’s discussion of a technical recession coming, geopolitical uncertainty, I think consumers are going to be light this year on spending," said Winder.

Meanwhile, police officials said that shoppers should be vigilant this time of year to protect their purchases with increased reports of porch pirates and vehicle break-ins the norm for this time of year.

"When shopping in stores, your parcel is being displayed in your vehicle,” said Greater Sudbury Police Service spokesperson Kaitlyn Dunn.

“When people can see them, people may attempt to steal them by breaking your window. So we suggest putting them in their trunk so they’re not visible.”

She also recommended bringing purchases in with you as soon as you get home.

Financial experts say when it comes to Black Friday or holiday shopping in general, the best advice is to budget before you head out and compare prices, to see if it is a good deal.

“Black Friday is expected to be muted,” said Winder.

“Tangerine Bank showed over the last year, travel was up 60 per cent (that’s) car rental, experiences, arts and recreation – but electronics, home improvement, (are) down eight per cent.”

Winder said some did get out and some malls were busy but mostly with younger consumers. He said retailers are really trying to entice customers this year.

“What we saw was Black Friday deals started earlier,” said Winder.

“(And) maybe last year it was 30 or 40 per cent off, this year it's 40 to 50 per cent off, more bonus points for loyalty programs, so retailers are trying to dial it up.”

He added that with things like Amazon Prime Day and flyer apps people are shopping smarter so the discount had to be sharper.