With the holiday season wrapped up and the new year ushered in, were the sales enough to keep Saskatoon businesses afloat?
Businesses have been struggling over the past few years; the pandemic and inflation contributed to that uphill battle. Jason Childs, associate professor of economics at the University of Regina, says the holiday season is especially important for some businesses.
“For businesses, it’s huge, particularly retail and those in the hospitality industry. Those two months, November and December, are really going to make your year. It’s the reason why it’s called Black Friday, you’re moving from red ink to black ink when you’re operating that kind of business,” Childs said.
“If you don’t make your year in November and December, the odds of you surviving the next year are pretty small.”
He said there are exceptions, but said those two months can often make the difference between profit and loss for many restaurants and retail businesses.
Childs said industries like tourism and travel will see a bump in sales in the summer months, but noted that slow months for businesses are almost always January and February.
“If you can make it to the end of February you might have a chance,” he said.
Childs said the easiest way to track this is to look at employment within the hospitality and restaurant industries, noting that employment in those industries drop in January and February.
“Between 2019 and the beginning of 2020, just before COVID-19 hit, you saw employment in that industry fall between December and January by about four per cent in Saskatchewan, three per cent nationally.”
He said this holiday season was the first in close to three years that there hasn’t been shopping hesitation from the pandemic or restrictions.
“It’s early to see the data yet, but when the data comes in, I think we’re going to see that consumers were opening up their wallets pretty happily this year.”
Jason Wosminity, manager of Las Palapas, said they kept busy this holiday season.
“The holiday spirit was high, and it was great,” Wosminity said.
He noted the turnout met his expectations.
“We have 18 years behind us and really loyal customers, and for that, we’re so grateful, and they came out in droves.”
Wosminity said the patio season is bigger for them, but said the holiday season helps.
He said the odd retail group will hold their Christmas party in January, and said they have Valentine’s Day to look forward to in mid-February.
Randy Pshebylo, executive director for Riversdale Business Improvement District, said businesses have had to learn and adapt since the pandemic.
“Coming off the heels of the pandemic, there’s been a seismic shift in how business is operating,” Pshebylo said.
He said he’s thankful for people coming physically to stores, noting that he heard local businesses having customers as far away as Calgary being thankful for the business staying open.
Pshebylo said many companies have had to learn to offer sales online as well.
He noted some businesses during the 2022 year saw a consistent increase year long, while others saw more turbulent waters, but with a strong turnout in the holiday months.
“So coupled with some of the bad weather days and things like that, overall it’s a very optimistic time.”
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