With their wallets eroded by rent and food increases, consumers are reluctant to embark on a spending spree on Boxing Day this year.
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At Sports Experts in the Galeries Rive-Nord in Repentigny, around a hundred people banged their noses on the glass doors of the store at lunchtime.
“It's going very well. “Traffic is higher than at the same time last year,” says Nicolas Sauvé-Baril, equipment manager. But when consumers are there, they spend less than usual, he notes. “People are spending less per transaction compared to previous years, that’s very clear,” he says.
Photo David Descoteaux
Due to skyrocketing interest rates, many customers have decided to exercise caution this year. “Inflation has been felt for two weeks. It was very quiet, people were waiting for Boxing Day today,” says Nicolas Sauvé-Baril.
The key interest rate increases come into force
“I’m not expecting a great vintage this year. If we add up all the numbers after the holidays, I think we will have a decrease of about 10% compared to last year,” says Benoit Duguay, professor at UQAM’s Department of Urban and Tourism Studies.
Benoit Duguay, Professor in the Department of Urban and Tourism Studies at UQAM. PHOTO TAKEN FROM UQAM SITE
This year, he notes, a crucial factor comes into play. The Bank of Canada's numerous increases in key interest rates in 2022 and 2023 are finally having an impact.
“It has a huge impact on the interest paid on credit cards, car purchases, lines of credit and mortgages… Add to that grocery inflation, and many people are struggling to find adequate housing and food. “We have to make very difficult decisions,” he explains.
All of this works against Boxing Day. But there is also another side of the coin.
“There are people today who are traveling to see if they could save on an item or two to save money as they are in short supply at the moment. But there aren’t usually many deals like that,” he says.
Long live Boxing Day
If inflation curbs consumer enthusiasm this year, it will not cause this unmissable event to disappear, emphasizes Benoit Duguay.
“Consuming is fun. Walking through a store and shopping is, as the French say, something festive, it's part of our folklore. We spend Halloween and Boxing Day,” he says.
“We take a walk on Sainte-Catherine Street in Montreal, not necessarily to shop, but to see the world and the activities that take place there. Going to a website, clicking on it and adding it to our virtual shopping cart is not a particularly intense pleasure…
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