The Dynamics of Black Friday Shopping in Canada: A Buy Canadian Movement Amid Economic Challenges

As Canadian consumers approach the 2025 Black Friday shopping season, they are faced with a complex interplay of patriotism and economic constraints. The Business Development Bank of Canada (BDC) reports that Canadian households plan to spend an average of $943 on holiday shopping, with nearly 60% earmarked for Canadian products. This could potentially contribute up to $11 billion to Canada’s GDP. However, the desire to support local businesses is tempered by rising costs and cautious consumer behavior.

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Despite a strong inclination to buy Canadian, data from PwC indicates that shoppers intend to spend 10% less this year compared to 2024. The sentiment to purchase Canadian goods remains robust, particularly among baby boomers, with nearly two-thirds willing to pay more for domestic products. In contrast, 62% of Gen Z respondents indicated a preference for cheaper imported items, reflecting a generational divide in spending priorities.

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Calum Green, owner of the Canadian apparel brand Raised by Wolves, noted a temporary spike in sales during the Buy Canadian movement, but he acknowledged that the economic realities have dampened this enthusiasm. The removal of the de minimis exemption by former U.S. President Donald Trump has also complicated cross-border sales, impacting Canadian brands that previously relied on American customers.

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Canadian retailers are grappling with the dual challenge of rising production costs and a budget-conscious consumer base. Jonathan Laplante, general manager of Obasan, a Canadian organic mattress company, mentioned that while they have seen a year-over-year sales increase of 15-20%, the overall market pressures are forcing businesses to offer discounts. This shift from a no-discount strategy to competitive pricing reflects the necessity to adapt to changing consumer expectations.

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The current economic climate has led to unprecedented pricing strategies, particularly in the electronics sector. Retailers like Andres Electronics Experts report aggressive pricing, with significant discounts on items that were once much more expensive. The absence of tariffs on electronics from countries like Korea and Japan has allowed Canadian retailers to offer lower prices than their American counterparts, creating a favorable environment for Canadian consumers.

Crappy economy triggers even lower Black Friday prices

Black Friday has solidified its position as the busiest shopping day of the year in Canada, according to Moneris, a point-of-sale solutions provider. The trend indicates a growing enthusiasm for Black Friday deals, driven by rising living costs. However, experts caution consumers about the potential for overspending and recommend setting budgets to avoid impulse purchases.

Crappy economy triggers even lower Black Friday prices

While many Canadian consumers express support for local businesses, there is a noticeable gap between intention and action. Green emphasized that while customers may advocate for Canadian products, economic constraints often prevent them from following through with their wallets. This sentiment underscores the challenges faced by Canadian retailers in balancing the Buy Canadian movement with the realities of consumer spending power.

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• “If every household pledged to spend an additional $100 on Canadian goods, the impact could jump to $13-billion, the Crown corporation found.” — Pierre Cléroux, Chief Economist, BDC

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• “Made in Canada products aren’t cheap.” — Calum Green, Owner, Raised by Wolves

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• “Black Friday reclaimed its spot as the busiest shopping day," said Moneris vice-president Sean McCormick.” — Sean McCormick, Vice-President, Moneris

Crappy economy triggers even lower Black Friday prices

The dynamics of Black Friday in Canada illustrate a complex relationship between consumer sentiment, economic realities, and the ongoing commitment to support local businesses. As the holiday shopping season unfolds, the outcomes will reveal the true impact of these factors on the Canadian retail landscape.

The Globe and Mail (Toronto)