Bargain hunters seek deep Boxing Day discounts amid high cost of living

Eager bargain hunters lined up early outside several stores at the Dartmouth Crossing Wednesday morning in search of deep Boxing Day discounts.

"I'm just looking to score a few deals," said Shawn Mudge who was in line outside Walmart. "Some Christmas decorations if I can find some on sale and look at maybe a TV."

At Dartmouth Best Buy, store manager Michael Belaire said they opened early for Boxing Day and they were greeted by a mass of shoppers who were mainly looking to buy for themselves.

"On Black Friday, we find it's a lot of gift giving, where someone says 'Hey I'm buying this for my brother or sister,'" said Belair. "When you get to Boxing Day, it's kind of a little more fun because it's someone coming in with a gift card or maybe some money they set aside after the holidays."

This year amid high inflation and what some call a cost of living crisis, many business owners said shoppers were more strategic this year in their approach to buying and gift-giving.

Vanda Dawson, Cazza Petite's clothing store’s manager in Bedford’s Sunnyside Mall, said many shoppers are stretched financially and that's leading them to purchase fewer items than before.

"They are not buying outfits, instead they are coming in and buying one or two pieces," said Dawson. "They are picking and choosing, if they love it they buy it, if they don't they walk out"

At the same time, Dawson says people are waiting for sales like Boxing Day where they can get deep discounts on items.

"People were waiting for the sales, so it was crazy busy here on Black Friday and it's starting to pick up here today and tomorrow will likely be crazy busy," said Dawson.

Silken Lingerie experienced steady sales over the holidays and assistant manager Amelia Hallal said discounts like these on Boxing Day help drive traffic into the store.

"I think that people love a good deal and they love to support local as well," said Hallal.

Business professor Ed McHugh says shoppers are becoming more calculated in their purchases amid high living costs, but believes 2024 is shaping up to be a better year economically than the last one.

"Inflation right now is running lower than it was a year ago," said McHugh. "And there are predictions that the economy will grow by one percent next year, which is OK and so we're in good shape. The biggest thing we all have to watch is that central bank rate."

Canada's interest rate hit five per cent in July and has remained there ever since. It's the highest level the Bank of Canada has raised its rate in more than 20 years, but it appears to be working to tame the rising inflation.

The Canadian inflation rate was measured at 3.1 per cent in October that was down from 3.8 per cent in September.

While world banks continue to change interest rates to try and curb inflation, it will temper consumer spending and so it will be challenging for retail stores to draw customers back at this time said McHugh, without offering creative incentives and steep price markdowns.

"You are going to see some deals, and you are going to see stores and retailers being creative, on how to drive traffic back on through," said McHugh.

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