Canadian retailers can expect a bustling Black Friday, an American holiday shopping tradition that has firmly taken hold north of the border.
According to a new study by IPG Mediabrands, 19.3 million Canadians plan to shop on Black Friday (Nov. 27) and/or Cyber Monday (Nov. 30), roughly three million more than last year.
As more retailers and malls get in on the sales action, consumer perception of Black Friday is changing. In an IPG Mediabrands survey of 1,000 Canadians, 23% of respondents say they believe Black Friday deals in Canadian stores are just as good as the deals in America, up from 14% in 2014. And only 15% of Canadian shoppers plan to travel to the U.S. to shop on Black Friday, compared to 24% last year.
“No doubt the exchange rate is just not very favourable to Canadians… but perceptions towards Black Friday is more positive towards Canadian stores,” says Loraine Cordery, insights manager at IPG Mediabrands.
The survey finds more than a third of shoppers plan to spend more on Black Friday and Cyber Monday than they did last year. IPG Mediabrands estimates Canadians’ total spend will be $5.6 million for Black Friday and $4.9 million for Cyber Monday.
“There is going to be a significant amount of money washing into the Canadian economy and because fewer people are going over to the U.S., it’s going to be doubly beneficial to Canadian retailers this year,” says Cordery.
While that’s good news for Canadian retailers, there might be a downside for employers. According to the IPG Mediabrands report, 1.2 million people are planning to call in sick to take advantage of Black Friday/Cyber Monday deals, and another 6.4 million plan to take a legitimate vacation day.
“They’re quite shocking numbers and the reaction to that is, ‘are we going to see a big dip in productivity?’” says Cordery. “And it’s very true because even amongst those that aren’t going to be taking a day off, a significant amount are going to be shopping during their work hours.”
In terms of what they’re shopping for, 52% of consumers plan to buy clothing accessories and shoes on Black Friday, while 46% plan to do so on Cyber Monday. This is followed by technology and home electronics (44% Black Friday, 39% Cyber Monday); books, music and DVDs (37% for both days); computer hardware and software (33% for both days); and toys (29% Black Friday and 24% Cyber Monday).
