More than ever, Canadians are looking for the best deals when shopping for products, and services and events such as Black Friday will be very welcomed. Indicators such as impressive Back-to-School spend show that Black Friday 2020 will continue to be a strong event for retailers and consumers. However, Black Friday 2020 may differ from what consumers have become accustomed to. New buying modalities, the importance of a good shipping experience and the support of local businesses are some of the new trends we see shaping this year’s upcoming Black Friday shopping event.

CONSUMER SPENDING

While economic concerns are elevated, consumer intention to purchase at retail is growing in comparison to earlier stages of the pandemic. This presents an optimal opportunity for brands and businesses to increase their advertising efforts in order to generate awareness and preference for the upcoming Black Friday and the holiday shopping season.

Canadians are seeking good deals in an effort to maximize their budget. 41% of Canadian consumers declared in April that they would wait for products to be on sale before buying them.

Canadians have been using their debit and credit cards more over the past months. Spending in early September was similar to pre-pandemic levels and points to a sign of economic recovery.

Since household finances were impacted because of the pandemic, Canadians are more likely to take advantage of promotional dates to purchase products and services they currently need. Monthly data through August suggest Canadians still prepared themselves and their children for the return to school.

Canadians able to work from home during the pandemic were found to have saved on expenses such as fuel, travel, events and gatherings. Thus, it’s likely that some consumers may treat themselves in the upcoming Black Friday and holiday season as a form of “retail therapy”.

The survey from the Canadian Payroll Association shows 62% of working Canadians were able to save more than 5% of their working income in 2020, compared to 59% last year.

According to Daniel Bachman, a senior international macroeconomic forecaster and modeler from Deloitte US, reduced spending on pandemic-sensitive services such as restaurants and travel may help bolster retail holiday sales.

Consumers have become more experimental than ever and their brand loyalty has decreased. They are trying new brands, new stores and new shopping methods. Better prices and promotions have been the main reasons for them to try a new brand. This experimentalism and enhanced brand competition present an opportunity for brands to leverage advertising as a point of differentiation with distinct, relevant and creative messaging.

TRENDS THAT WILL SHAPE THE 2020 BLACK FRIDAY AND HOLIDAY SHOPPING SEASON

Canadians are still respecting social distancing rules and are mindful of an imminent second wave. This will have an effect on the holiday shopping calendar given the fact that consumers will be planning to shop ahead of time to avoid crowds and sell outs. In an effort to stay safe and comfortable while shopping, consumers will be more likely to do it online or before going to physical stores, they will probably check schedules, confirm stock levels and shop during less volume-heavy times.

Source: Google commissioned Ipsos COVID-19 tracker, CA n= ~730 18+ online consumers who plan to shop for the holidays. June 25-28.

According to the Vividata May-June, 2020 COVID-19 Interim release, the number of Canadians that declared personally participating in Black Friday was 47%, compared to the 27% reported in the Vividata Spring 2020 release – an increase of +74%!