Canadian retailers are expected to offer deep discounts this Boxing Day in a bid to entice shoppers to buy up leftover holiday and seasonal goods and raise enough cash to endure the latest round of pandemic restrictions.

Yet despite the rush of slashed prices and promotions already rolling out, industry watchers say the post-Christmas shopping spree will be subdued as OntarioB次元官网网址檚 new lockdown takes effect, pushing sales in the countryB次元官网网址檚 most populated province almost entirely online.

B次元官网网址淚 think weB次元官网网址檙e going to see a ton of deals and some fire-sale prices,B次元官网网址� says Farla Efros, president of HRC Retail Advisory.

B次元官网网址淭here is going to be so much excess inventory that theyB次元官网网址檙e just trying to get rid ofB次元官网网址� she says. B次元官网网址淭hey also need cash. ItB次元官网网址檚 all about the balance sheet.B次元官网网址�

Still, Efros, who served as interim CEO of U.S. fashion brand True Religion in 2019, says the spending spree will likely be a B次元官网网址渟adB次元官网网址� and B次元官网网址渓acklustreB次元官网网址� shell of its usual self.

Boxing Day, historically the countryB次元官网网址檚 biggest sales event, is a holiday shopping bonanza that usually sees massive crowds descend on malls and main streets the day after Christmas in search of deals.

It has been increasingly overshadowed by Black Friday, which falls the day after the U.S. Thanksgiving holiday, as shoppers check gifts off holiday lists early.

A holiday retail report by Deloitte Canada says the American shopping event has become B次元官网网址渁n entrenched part of the Canadian shopping landscapeB次元官网网址� in just a few years. A JLL Canada holiday survey also found that 16 per cent of Canadians planned to seek out Boxing Day deals, compared to 29 per cent on Black Friday.

Amazon added another rival to Boxing Day this year when it moved its Prime Day to mid-October, pushing the unofficial start to the holiday shopping season even earlier.

Despite the increasing competition for holiday dollars, retail experts say there is a glimmer of hope that Boxing Day could regain some of its former prominence this year.

B次元官网网址淐anadians werenB次元官网网址檛 able to cross the border into the U.S. for Black Friday to get some of those deeper discounts, so it could have been a great year for Canadian retailers to get back a little bit of the glory days of Boxing Day,B次元官网网址� says Tandy Thomas, an associate professor in the Smith School of Business at QueenB次元官网网址檚 University.

B次元官网网址淏ut all those plans have been tossed out the window.B次元官网网址�

While widespread retail closures will be in effect in Ontario, Quebec and Manitoba on Boxing Day, other provinces have strict capacity rules curtailing how many shoppers can be in stores, dissuading some from venturing out altogether.

The restrictions are expected to lead to a largely online Boxing Day, similar to Black Friday.

B次元官网网址淭he big retail story this entire year is about online shopping and that will continue on Boxing Day,B次元官网网址� Thomas says. B次元官网网址淭he key is going to be for retailers to figure out how to attract customers to their websites and encourage them to spend.B次元官网网址�

She says Boxing Day is one of the few times of the year when B次元官网网址渃onsumers are primed to shopB次元官网网址� and some people have been waiting for the sales event to spend money.

B次元官网网址淲e have a bit of a bimodal situation where some people are desperately struggling with incomes severely impacted by the pandemic while others have been accumulating savings and are looking to spend money,B次元官网网址� Thomas says.

Still, retail observers say even shoppers who want to spend cash will expect steep markdowns and promotions before clicking to buy, and stores will likely step up and offer what consumers want in a bid to clear out stock.

B次元官网网址淧eople are buying a lot of gift cards this year and not the traditional wrapped gift so thereB次元官网网址檚 an excess of inventory and some pent-up demand,B次元官网网址� says Lisa Hutcheson, managing partner at consulting firm J.C. Williams Group.

B次元官网网址淲eB次元官网网址檒l likely see a high level of redemption of gift cards on Boxing Day.B次元官网网址�

Fashion retailers, among the hardest hit during the pandemic, will likely offer big sales on apparel and footwear, she says, noting that many stores began rolling out Boxing Day promotions in the week leading up to Christmas.

B次元官网网址淚 think weB次元官网网址檒l see a Boxing Day rush, but I think sales will also be stretched out a bit,B次元官网网址� Hutcheson says. B次元官网网址淲eB次元官网网址檒l likely see another surge in deals when things reopen because retailers donB次元官网网址檛 want to get stuck with aged goods like holiday and seasonal apparel.B次元官网网址�

She adds: B次元官网网址淔or retailers, itB次元官网网址檚 the balance of needing cash and also liquidating inventory that hasnB次元官网网址檛 sold.B次元官网网址�

Other items in categories like sporting goods and hobbies or home cooking could be harder to come by with fewer sales on offer, Hutcheson notes.

B次元官网网址淚f you go into a Canadian Tire some of the sporting goods shelves are empty,B次元官网网址� she says. B次元官网网址淲e could see some of the shortages we saw during the first wave of lockdowns.B次元官网网址�

Brett Bundale, The Canadian Press

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