Early holiday sales may be a boon for consumers but put pressure on retailers’ profit margins, say experts.
Despite the booming sales that happen on Black Friday, most Canadian retailers would rather not discount heavily this time of year, because, all else being equal, they could sell a lot of product at closer to regular prices.
“As soon as someone, whether it's Amazon or Walmart or someone else, started discounting around Black Friday in Canada, then everybody had to,” said University of Alberta marketing expert Kyle Murray. “If Sport Chek wants to keep the sale of that hockey stick you were going to buy, then they have to drop price as well. And then everybody does.
“It's great for Canadian consumers but puts a lot of pressure on retail margins.”
Once a strictly American phenomenon, Black Friday will now see upwards of 40 per cent of Canadians planning to take advantage of deals that day—more than the 34 per cent who said they ...