It may be only Halloween, but Canadian retailers are looking forward to holiday sales, which are expected to grow 3.5%, according to EY.
Lower gas prices, less cross-border shopping, the federal middle-class tax cut and moderately resilient consumer confidence are all expected to benefit Canadian retailers this holiday season. Consumers, on the other hand, may find higher prices than last year for some products, due to the depreciation of the Canadian dollar.
The 2016 holiday sales forecast throughout Canada is expected to vary by region and timing, but EY notes the following trends:
- British Columbia will continue to lead Canadian retail sales.
- A sluggish economy will drag down results in Alberta and Saskatchewan to a slight year-over-year drop in sales, although stabilization is within sight.
- Ontario sales gains are expected to slightly exceed the national average based on employment gains.
- Quebec sales are expected to reflect the national average.
- Sales in Atlantic Canada will be below the national average.
Also read: U.S. consumers to bump up holiday spending