Black Friday sales in B.C. may be tempered by record-high inflation, cost-of-living

Exactly one month before Christmas, the shopping season is officially here.

Friday marks Black Friday, one of the busiest shopping days of the year, but with inflation at a 40-year high, how much can people really afford to spend?

CityNews hit the streets of Vancouver to get a taste of people’s shopping habits. Some told us they were getting essentials, like diapers, for some new babies in the family. Others said they were getting some extra little Christmas presents for loved ones.

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One woman plans to spend big. “I am going to streamline it, but it’s going to be in the thousands and we don’t have in the thousands.”

Another person told us they plan to spend about $600 on Black Friday.

Another woman chuckled and remained realistic about her needs. “I do need to buy a TV, but I’m broke.”

She went on to explain why her family’s holiday budget this year is being scaled back. “Interest rates have gone up on our mortgage. Groceries have gone up, gas, everything — it’s just so expensive. So, I told the kids we’re just going to do four presents each, and small.”

Retail Strategist David Ian Gray with DIG360 says their research shows about half of Canadians take advantage of Black Friday deals, but he doesn’t think people will be spending big this year.

“With consumer confidence where it is, there’s not going to be a hunger for deals like we might have seen in the past. I think there’s going to be a lot of hunting for things that are needed or on the want-list prioritized and consumers being pretty picky about waiting out the retailers to let them drop the price to something they want to see.”

He adds sales may be softened this year because inflation is on everyone’s mind right now.

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“In terms of the actual demand and interest in products, I don’t think consumers by and large in Canada are going to want to buy as many items as possible, and I think they’re going to be looking for the retail to offer a good deal,” he said.

Gray says trends in the past have shown customers are often left feeling let down by sales and he thinks the same will happen this year.

“Consumers have been a little bit disappointed. They’ve been seeing more hype than substance in Black Friday promotions the last few years and there’s a bit of a game of chicken that goes on between the retailer and the shopper.”

This year is the first without any COVID-19 restrictions and Gray says that will make a difference in what people are buying.

“I think there are some categories, like clothing for example, where we’re starting to dress for going out and socializing more than the at-leisure trend of the prior two years. The chaos of the pandemic has rippled into the future… [and] we’re seeing different reactions in different retail categories. Electronics has been down. Clothing has been up. I don’t think there’s one universal statement that it’s either going to be horrible or it’s going to be terrific.”

The Retail Council of Canada says six-out-of-10 Canadians admit they are feeling financially strained right now. However, it finds people plan to spend about the same amount this year as they did last during Black Friday, Cyber Monday, and Boxing Day, which is just under $800.

–With files from John Ackermann and David Nadalini