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Retailers Face Black Friday Pressure as Canadians Tighten Holiday Spending

Retailers Face Black Friday Pressure as Canadians Tighten Holiday Spending

Posted on November 23, 2025December 4, 2025 by Edward Fontes

Canadian retailers are feeling the heat this Black Friday season as consumers prepare to scale back their holiday spending. Rising costs, economic uncertainty, and increased price sensitivity are forcing both big and small businesses to rethink their sales strategies and offer longer, more aggressive promotions.

Black Friday Is No Longer Just One Day

Retailers are starting their Black Friday deals earlier than ever, with promotions stretching from post-Halloween through late December. According to the Retail Council of Canada (RCC), this shift reflects changing consumer behaviour.

Black Friday Has Become a Shopping Season

Santo Ligotti, Vice President of Marketing and Membership at the RCC, notes that Black Friday now functions more as an extended shopping period than a single event.

Price sensitivity is dominating purchase decisions this year, with Canadians prioritising discounts, price matching, and sales before making any buying choices.

Small Businesses Join the Black Friday Race

To attract budget-conscious shoppers, small retailers are also stepping into Black Friday campaigns.

Local Stores Struggle With Rising Costs

Wolf & Rebel, a gift and homegoods shop in Windsor, Ontario, is launching its first-ever Black Friday sale to bring in customers.

Owner Annie Vanrivong shared that increased tariffs and rising costs have made products less affordable for many shoppers.

“People are struggling to afford groceries, so shopping for home decor feels like a luxury,” she said.

Although the one-day discount of up to 50% may not significantly boost profits, Vanrivong hopes it will increase foot traffic and help clear slow-moving inventory.

Customer Expectations Drive Participation

Fanny Vergnolle de Villers, owner of VdeV homegoods stores in Quebec and Ontario, says Black Friday participation is now necessary as customers expect it.

“People seemed disappointed when we didn’t do anything before. They now expect deals like the big retailers,” she said.

While her stores are performing well, she has noticed customers shopping with stricter budgets than previous years.

Major Retailers Offer Bigger and Longer Discounts

Large retailers have expanded their Black Friday campaigns into multi-week events to control crowds and increase accessibility.

Best Buy Spreads Deals Over Weeks

Best Buy Canada began its Black Friday promotions in early November, allowing customers to shop at a relaxed pace. Discounts will continue through to the New Year, with the best prices running until late November.

Store leader Joe Colucci stated that this approach helps reduce congestion and provides flexibility to customers.

Walmart Pushes Steeper Discounts

Walmart Canada has introduced early Black Friday sales offering discounts of up to 35%, with even deeper cuts on select items.

Retail executives report strong early holiday sales performance and expect continued consumer engagement throughout the season.

Does the ‘Buy Canadian’ Movement Still Matter?

While there has been encouragement to support Canadian-made products, price remains the dominant factor influencing purchases.

Price Still Reigns Supreme

According to RCC and Bank of Canada surveys, most consumers are unwilling to pay more than 10% extra for Canadian-made products.

Ligotti confirmed that affordability outweighs national loyalty when it comes to spending decisions.

Don’t Fall for FOMO Marketing

Black Friday sales are often designed to trigger urgency and fear of missing out. Consumers are advised to stay mindful and avoid overspending based on pressure-driven promotions.

Support Local When Possible

Despite challenges, small business owners encourage Canadians to allocate even a small portion of their holiday spending to local brands.

“Even if people buy just one or two local items, it makes a meaningful difference,” said Vergnolle de Villers.


Final Thoughts

This year’s Black Friday season highlights a clear trend: Canadians are becoming more cautious with their money. Retailers are adjusting by offering extended promotions, deeper discounts, and flexible shopping options. Whether choosing big brands or supporting local businesses, shoppers are prioritizing value, affordability, and smart spending over impulse buying.

 

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