Black Friday shoppers exercising caution for holiday spending season

Black Friday is considered the official kickoff to the holiday shopping season for many Canadians.

But this year, the spending landscape is facing unprecedented challenges. With cost of living increases, shoppers in Calgary say they are keeping affordability top of mind.

Shoppers we talked to in Calgary’s Beltline said they were being more conservative than usual when it came to spending.

This hesitancy by shoppers is being echoed by small businesses in Calgary.

Andrew Sennyah from the Canadian Federation of Independent Business (CFIB) said confidence is low amongst small business owners for this holiday season.

“For small businesses, the holiday season represents about 40 per cent of their annual sales,” said Sennyah, who is a senior policy analyst for the CFIB. “Confidence is low in part due to high interest rates, high inflation, and a lot of the debt that businesses have collected from the pandemic.”

Other shoppers Global News talked to said they are still looking around, but are noticing some of the deals are not worth it this year.

In Deloitte’s 2023 holiday retail outlook, the firm predicted an 11 per cent drop in holiday spending for Canadians as financial pressures mount. The anticipated average spend per Canadian for 2023 is $1,347. The report also found that 33 per cent of Canadians are worried about how to pay for gifts this year.

Nicole Olsen of BDO Debt Solutions said there are ways to keep spending manageable during the holiday shopping season. She said it is best to make a plan, decide who you are buying for, and to stick to it.

“Go into this with the idea that all of these sales are here to entice me to spend more money,” Olsen said. “Comparison shopping can be key.

“Everybody is struggling with the same thing. If you’re having a hard time coming up with the funds for all of the gifts and everything you expect, your friends and family might as well. Open up that dialogue and have that conversation.”

Other suggestions Olsen made included putting a set dollar limit on gifts with loved ones, or deciding not to do gifts at all this year.

“After COVID, we all know the most important part about this holiday season is getting together and being with the friends and family that we love.”