December is typically a busy month for retailers and beauty service providers, such as the Sweet Spot Beauty Bar in Kelowna’s Lower Mission area.
“Last year, we had to turn people away,” said owner Alicia Jameson. “We were so busy.”
This Christmas season is a lot different.
There are fewer clients and the salon is selling fewer gift certificates. Those that are being sold are for smaller amounts of money.
“The denominations are a lot lower, probably about 50 per cent lower compared to last Christmas season,” Jameson said.
Across town, at the True Art store, business is also down compared to last year.
“People are spending less money and they are more cautious with what they are actually purchasing,” owner Diane Geddes said. “People will come in here multiple times before they purchase an item, look around and say, ‘OK. let me think about it.'”
Retailers attribute the sales slowdown to inflation and the overall cost of living.
According to an Ipsos Reid poll last month, Canadians are planning to spend significantly less this holiday season, with 78 per cent of respondents saying they planned on buying fewer gifts this year.
While many retailers are dealing with that reality, the Retail Council of Canada says the next week-and-a-half will provide a boost for many businesses.
“It’s a big spending week,” said Greg Wilson, a B.C. director with the council. “We know that a lot of apparel and jewelry are bought in the last week.”
Wilson also expects retailers to add incentives to encourage spending.
“Certainly they’ll be changing prices both this week and next week to sell more goods,” Wilson said. “We want, obviously, to provide the consumer with the best deals.
“But we also want to make sure that that inventory is turned over. People are stocked up for Christmas, so those goods need to be sold.”
Retailers are banking on that last-minute spending ahead of slower shopping months.
“January, February, March … we don’t really make any money in the store because that’s the reality of it,” Geddes said. “People get all of their bills in January and they’re like, ‘Oh, I better not spend anymore.'”
Business operators, meanwhile, are pleading with shoppers to spend locally if they’re still planning to do holiday shopping.
“I understand people’s budgets are all over the map right now,” Jameson said, “but shop local where you can.”
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