‘Tis the holiday shopping season. But are Canadian products on the list?
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While recent data shows the Buy Canadian movement is losing momentum, some business owners are hoping the surge they’re seeing will continue through Black Friday sales and throughout the holiday shopping season.
The movement started earlier this year That’s after consumers turned to Canadian-made products in an effort to boycott the United States following a trade war and takedown threats from President Donald Trump.
But since its peak, recent data shows that the trend has declined.
statistics canada latest report found that nearly 70 per cent of businesses “did not experience an increase in sales of their Canadian products” over the past six months. Only 13 percent of businesses said they had seen an increase, while the remainder were not sure.
Experts say inflation and Canada’s removal of some counter tariffs on U.S. products have made goods less expensive and could mean consumers are returning to old habits.
a fresh Bank of Canada Survey It was also found that most of the people said that they were not willing to pay Plus an additional 10 percent for Canadian-made products.
“There appears to be a long-lasting shift in the general public towards preferring Canadian goods and services,” said François Neville, A Strategic Management Professor at McMaster University’s DeGroote School of Business.
“While this sentiment was probably at its peak shortly after the initial wave of tariffs from the Trump administration, it certainly seems to have subsided a bit.”
Unless more divisive comments come from the White House over the next few weeks, Neville says he’s unsure whether Buy Canadian will take priority this holiday season.
,If we think about the types of gifts that are purchased during the holiday season, often these are products that are not necessarily manufactured in Canada,” he said, referring to toys that are typically made in China.
Some businesses say the boom is still going on
Buy Canadian Despite a perceived softening of sentiment, some businesses say they have received continued support throughout the year.
Clothing retail owner Julie Brown says sales at her business, Province of Canada, have almost doubled every month since January compared to last year.
He said he has had to nearly double his warehouse and office staff to meet demand.
“We’re seeing a huge pressure to buy Canadian,” Brown said.
“It certainly hasn’t slowed us down for the holiday season, and I think we’re going to see a strong December as well.”
Chris Sharnevich, president of Shop Makers, whose cross-Canada stores feature products made by local artists and entrepreneurs, says the company is also an exception in terms of statistics.
According to Sharnevich, Shop Makers has opened seven new stores this year – and more could be opened. He says that compared to last year, there was an increase of about 20 to 40 percent in sales every month.
But Sharnevich says he believes people are short on cash and Canadian products may be more expensive, which is why businesses may find their items aren’t selling.
“With the Canadian product, naturally that cost will be a little bit higher,” he said.
“There are consumers coming in and, you know, comparing our product, probably 20 percent more than they would have traditionally done online,” he said. “But again, we really just try to emphasize the fact that you’re supporting Canadians.”
Is shopping local the biggest priority for Canadians?
A Business Development Bank of Canada (BDC) Survey found that each Canadian household is expected to spend an average of $943 on holiday gifts this year, but 59 per cent (or $553) of that is expected to be spent on local products and services – an increase from last year.
“When you do that, you create jobs in Canada,” said the BDC’s chief economist. Pierre Cleroux.
He said 46 per cent of Canadians “are.”They said they will spend more on Canadian products and services this year.
The BDC says that if Canadians spent $100 more of their existing holiday budgets on Canadian products, they would inject approximately $13 billion into the economy.
Due to inflation and economic uncertainty, many Canadian shoppers are eager to take advantage of discounts and retailers are looking to attract people by starting Black Friday sales early.
Some holiday shoppers at Toronto’s Eaton Center told CBC News they plan to put as much of their dollars toward Canada as possible.
“I think the government is limited in what it can do and doesn’t want to cause a terrible reaction,” Robert Corey said. “But citizens can vote with their wallets.”
But for others, price will play a bigger role.
“Ideally, if you can get Canadian, I’d get Canadian,” Gregory Jarnard said. “You just have to keep an eye on the budget.”