Small businesses worried about sales as customers grapple with cost of living

This Black Friday, some independent retailers in Vancouver say they’re hoping to make up for the slower sales they’ve seen in recent months as Canadians grapple with the high cost of living.

Lisa Arthurs opened Quick Nickel on Davie Street 34 years ago, and this Black Friday, she’s offering customers 50 per cent off.

“The economic situation and the costs of food and rent were scaring people a lot going into Black Friday,” Arthurs told CityNews. “We are hoping that will help kick-start the whole holiday spending season, and we are extending our Black Friday deals throughout the entire weekend, not just one day, so we can generate extra cash.”

Emily Boston, a policy analyst with the Canadian Federation of Independent Business (CFIB), says supporting small businesses instead of big chains has greater economic benefits.

“We’re hoping that consumers will take that step to shop local first,” Boston said. “Every time you spend a dollar at a small local business, about 66 cents of that dollar is recirculated back into the local provincial economy. In stark contrast, if you spend that at a store like Walmart only 11 cents is going to make it back into the community.”

A CFIB retail report suggests independent businesses have had better years in sales, and it found seven in 10 retailers are losing customers and revenue to large multinational retailers.

CityLux Boutique owner Sunan Spriggs says sales have been terrible this year for herself and other retailers in her network.

“Typically November and December are really good months for us,” Spriggs said. “We are all reporting anywhere between 30 and 40 per cent in losses in revenue since the beginning of the year. As disposable income is shrinking and consumer spending is down, we are definitely feeling it and it’s been very difficult.”

Spriggs says she had to come up with new ways to keep her business afloat. She says that since customers can’t afford luxury dresses, they’ll be able to rent them, starting next week.

“It will give people an opportunity to still get to wear these beautiful dresses, especially at events like Christmas time, but in a more sustainable way,” she said.

Boston says small businesses could be in trouble if they don’t hit their holiday targets. This is especially true for businesses that have to repay government money borrowed during the pandemic.

“They have massive economic challenges ahead, such as repaying their CEBA loans just after their holiday seasons, so there is a lot on the mind of B.C. small business owners,
she said. “And everything we can do to help support them through this difficult time will make all the difference to them and our communities.”