
The holiday shopping season this year faces a significant challenge due to a compressed timeframe. The calendar has reduced the period between Black Friday and Christmas Eve to just 26 days, five fewer than in 2023. This shortened window results from a later-than-usual U.S. Thanksgiving and is already affecting holiday shopping patterns.
Tandy Thomas, a marketing expert and E. Marie Shantz fellow at Queen’s University, elaborated on the implications of this shortened season. “With five fewer days between Black Friday and Christmas this year, we can expect to see retailers doing everything they can to get consumers in stores earlier than usual,” Thomas explained in an email. Retailers have responded swiftly, launching pre-Black Friday sales earlier than ever, aiming to spread consumer spending across the condensed timeframe.
Retailers Adjust Strategies
In anticipation of the shortened season, many retailers began displaying holiday merchandise well before Halloween. Chains such as Costco, Dollarama, and Winners stocked their shelves with festive goods as early as late October. This early push aligns with efforts to maximize consumer spending over the truncated period.
TJ Flood, president of Canadian Tire Corp., acknowledged this strategic shift during a recent earnings call. “We’ve got to think through our marketing campaigns and the lead-up to Black Friday and then also the last sprint between Black Friday and Christmas, so we’re being very, very aggressive in recognizing that,” he stated.
Evolving Consumer Spending Trends
Black Friday continues to be the most significant shopping day for Canadians, but a growing number of shoppers are adapting their habits. A survey conducted by the Retail Council of Canada revealed that 26% of respondents plan to delay their holiday purchases until Black Friday or later.
Despite the compressed holiday season, spending projections are optimistic. Canadians expect to spend an average of $972 on holiday shopping, marking an 8% increase from last year. However, the rush to complete shopping within a shorter window poses potential challenges.
“The biggest risk with fewer shopping days is that consumers feel rushed,” Thomas noted. “With rushing comes poorer decision-making and a higher likelihood of overspending or buying unnecessary items.”
Not all experts share the concern that the shortened timeline will negatively impact shoppers. Liza Amlani, co-founder of the Retail Strategy Group, believes consumers have more options than ever, both in-store and online. “The shortened golden period won’t impact customers,” she asserted, suggesting that shoppers can still find what they need within the limited time.
Retailers Navigate Heightened Stakes
The compressed season has increased pressure on retailers to optimize their strategies. Spin Master Corp., known for popular toy brands such as Paw Patrol and Hatchimals, has adjusted its marketing to capitalize on the reduced timeframe.
Max Rangel, CEO of Spin Master Corp., highlighted the importance of targeting high-intent periods. “We aim to focus on when consumer intent is at its highest point within that window,” Rangel shared during an earnings call.
Yet, some industry voices argue that retailers may be overstating the challenges of the shortened season. “Retailers plan their assortments a year in advance, so having five fewer days to sell products is not new news,” Amlani pointed out. She suggested that underperforming retailers might use the compressed season as a convenient excuse for failing to meet sales targets.
Strategic Planning: A Key to Success
As the holiday shopping frenzy intensifies, both retailers and consumers face unique pressures. Retailers must navigate the dual challenge of enticing early shoppers while accommodating last-minute buyers. For consumers, the shortened season rewards those who plan strategically but poses challenges for procrastinators.
The time crunch may benefit well-prepared shoppers who can avoid the stress and overspending associated with rushed decision-making. Conversely, businesses relying on a last-minute sales surge may struggle to meet their goals within the limited timeframe.
Conclusion
This year’s holiday season presents a unique set of challenges and opportunities for retailers and shoppers alike. While the shorter window between Black Friday and Christmas demands greater agility and strategic planning, it also underscores the resilience of both consumers and businesses in adapting to evolving circumstances. The holiday spirit, coupled with innovative strategies, ensures that the season remains as vibrant as ever.