Canadians
get so much American content on TV and their personal portable
entertainment devices that it's possible to think there's not a lot
of cultural differences between our countries.
We
also do so much of our import and export business with the U.S., that
our economic behaviours should not differ that much, either.
But
we've been hearing that story for decades, and our cultural and
economic borders remain intact. The Canadian experience with the
irrational phenomenon of Black Friday may just be the proof of it.
This
year is a bit of an odd duck, as far as Christmas shopping goes. The
season officially kicks off with Black Friday, which coincides with
American Thanksgiving, which this year also coincides with Hanukah.
Both also coincide with a season containing six fewer shopping
days before Christmas.
Calendar
buffs tell us such a triple confluence will not happen again until
long after humanity is wiped out by an asteroid. Even then, surviving
species will probably still line up overnight outside whatever
Wal-Mart stores remain standing in what used to be the U.S.
And, as I heard one commentator remarkt, while
still digesting the feast they ate to give thanks for all the stuff
they already have.
But
not in Canada. We're smarter than that.
Depending
on whose web site you can trust, Christmas shopping can account for
as much as 30 per cent of total U.S. retail sales, and 40 per cent of
American retail profits.
That
includes the deep discounts purportedly offered on Black Friday, and
Cyber Week to follow.
Statistics
Canada puts that figure at just 10 per cent of total retail sales for
us, which is only 1.5 per cent above the monthly average. (To allow
that percentage, January, February and March are significantly below
average.)
Yes,
Christmas shopping is indeed significant to our retail economy — it
is the basis of the Christmas season as we have come to live it. But
Black Friday will probably never catch on here the way it has south
of the border.
Why
not? Three reasons.
First,
the Black Friday frenzy of violent shopping is already burning out in
the U.S. Early reports show sales are down about three per cent from
last year, and represent the first drop since the Great Recession.
Analysts
point to a 17-per-cent one-year surge in online shopping as a reason. All those
electronic devices shoppers got in previous sales are actually being
used for their intended purpose: online commerce.
Second,
despite the hysteria around the event in America, consumers are
waking up to a realization the discounts, however deep, are less than
they believed.
Consider
clothing and fashion (which my friends remark that I seldom do).
In
Red Deer, Hudson's Bay opened up at 7 a.m. on Black Friday and handed
out $20 gift cards to the first 200 customers who crashed the gates.
Compared to the videos we see from the U.S., reports say ours was a
rather slow-motion crash.
But
even at 40 or 50 per cent off that designer sweater, you're still
paying $40 or $50. For a sweater consumers can reasonably suspect
cost less than $5 to produce.
It
makes you wonder who was ever dumb enough to pay full price.
Which
plants the seed of the demise of Black Friday. Certainly, retailers
offer loss-leader discounts on some items, but when the whole store
is discounted all day (or longer) and they still make money, you have
to wonder what's up about the rest of the year.
This
leads to consumer cynicism, which leads to greater use of our first
point: online searches for discounts year-round.
A
third consideration is our more Canadian retailing tradition: the
Boxing Day sale.
With
the steady rise of gift cards as Christmas presents, Boxing Day sales
are a far more logical follow-up. We get our Christmas presents
twice; once under the tree in a nice envelope, and once again as a
bonus discount on an item on Boxing Day (or Boxing Week nowadays).
And
it's always just what we wanted for Christmas, because we pick it up
ourselves.
The
retail association spokespeople quoted on the articles I saw tell us
the industry cannot support both Black Friday and Boxing Day.
It
is more rational to delay gratification (while doubling it) on Boxing
Day. That is why I believe Black Friday will remain grey in Canada.
Merry
Christmas, and happy shopping to all.
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