It’s the time of year when consumers usually start spending again after a period of post-holiday thriftiness, but 2015 could be different.
At Underground Clothing at CrossIron Mills mall near Calgary, staff are putting out the February stock amid concerns that retail spending could be sluggish this year.
“For us, the verdict is still out,” said company president John Stiles.
The store’s sales were stable in December, but an economic slowdown caused by low oil prices means retailers face an uncertain future.
“I believe we can make the changes to maintain relevance to the customers,” said Stiles.
“But I don’t believe that will be the case throughout all of retail.”
New retail spending numbers from Statistics Canada reveal it was anything but a happy holidays for Canadian retailers.
December sales plunged 2% to $42.1 billion dollars, the biggest monthly sales drop since 2010. No province was immune, and almost every sector was hit.
Analysts say Black Friday sales starting earlier in November could be to blame for less shopping in December.
For shoppers like Patrick Soul and his family, the economic slowdown means cutting back.
“For the most part we’re kind of on lock down, as far as need versus want,” said Soul.
“I mean there’s a little bit of want spending, but mostly need spending.”
Lower gas prices helped bring down spending, but many families have opted to hold onto the extra cash.
“It could have been an even larger drop if people didn’t have the little bit of extra change in their purses or wallets after they fueled up,” said ATB Financial Chief Economist Todd Hirsch.
However, even cheap gas didn’t help move cars off the lot, as Albertans opted to get more mileage out of the vehicles they already own.
NextGen Auto Sales’ Tareq Nazar said business has decreased by 15 to 20 per cent over the past few months.
“It’s been a lot slower,” Nazar said.
Economists says while the news isn’t good, they’ll be watching to see if the spending slowdown continues into 2015.
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