Boxing Day is affected by inflation

With rising rents and groceries draining their wallets, consumers are hesitant to spend on Boxing Day this year.

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At Sports Experts in the Galeries Rive-Nord in Paschapat, about a hundred people poke their noses at the store's glass doors at midday.

“It's going very well. The traffic is higher than at the same time last year,” said device manager Nicolas Sauv-Barril. But if users are there, they're spending less than usual, he noted. “Per transaction, people are spending less than in previous years. , it's very clear,” he says.

Stuck in the throat with exploding interest rates, many customers have decided to be cautious this year. “Inflation has been felt for two weeks. It's very calm, people are looking forward to Boxing Day today,” said Nicolas Sauv-Barril.

Not a great vintage

“I don't expect a great vintage this year. When we calculate all the figures after the holidays, in my opinion, we will be down 10 percent compared to last year,” said Professor Benoit Duguay. Department of Urban and Tourism Studies From UQAM.

This year, one key factor will come into play, he noted. Several increases in the Bank of Canada's key rate in 2022 and 2023 are finally coming into effect. “This has a huge impact on the interest paid on credit cards, car purchases, lines of credit and mortgages…Added to that by inflation at the grocery store, many people are struggling to afford adequate housing and food. We have to make very tough choices,” he explained.

All of this works against Boxing Day. But there is another side to the coin. “People are going to travel today to see if they can save on an item or two to save money because they're tight right now. But usually there aren't a ton of such deals,” he says.

Long Live Boxing Day

If inflation dampens consumer sentiment this year, it won't make this erratic event disappear, Benoît Duguay stressed.

“Consumption is a pleasure. Walking around a shop doing some errands Shopping, as the French say, it's something festive, it's in our folklore. We spend Halloween and we spend Boxing Day,” he said.

“We go for a walk down Sainte-Catherine Street in Montreal, not necessarily to buy, but to see the world and the activities that take place there. It's not a serious pleasure to go to a website, click and put it in our virtual basket…