It’s all about that Hype, Black Friday and Cyber Monday

November 26, 2014|
OCCA|
Blog|
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With the holiday season right around the corner Canadians are starting their gift shopping and looking to save as much cash as they can. In the past Canadians looked on with envy at the pre-Christmas deals our neighbours south of the border enjoyed. Now we too can share in the retail frenzy that is Black Friday and Cyber Monday.

It is easy to become overwhelmed by the frenzy and pressure to attain the best deals from influential retailers. Vancity (a BC credit union) commissioned a report through Mustel Group to better understand the Black Friday phenomenon in Canada and how it can inform consumers to make informed purchasing decisions.

The report (based on feedback in the BC and Victoria area) indicates spending over the Black Friday to Cyber Monday period increased by 16 per cent by Vancity VISA users in 2013 compared to 2012. It also shows evidence of larger retailers steadily inflating original prices and then dropping them, calling them a deal just in time for Black Friday. Such tactics create a false sense of urgency among shoppers and encourage rash decision-making. Door-crashers are also a tool for retailers on Black Friday, attracting crowds and bargain hunters. The actual discounts may be small and not especially good deals.

Vancity also reported data from 360pi Corporation showing prices “did not change significantly on Black Friday” in 2013, and that they actually went up in a number of cases.

The graph below shows retailers including Target and Walmart actually raised their prices last year.

Vancity provides the following tips in their report to help shoppers get a genuine good deal and make responsible purchasing decisions this weekend:

• Do the research: find the best price, find the right product, use deal websites and apps, bring a smartphone, get advice from knowledgeable friends;

• Time it right: shop before and after Black Friday, don’t limit research to key sale days, check return policies and keep receipts;

• Think it through: Think twice before buying multiples, don’t plan too far ahead, avoid wishful thinking and, most importantly, don’t get caught up in the deal;

• Understand trends for different types of products: buy toys and luxury goods closer to Christmas, buy winter apparel and bed linens in the New Year, watch out for look-alike electronics

Canadians, who are accustomed to more genuine clearance events such as Boxing Day sales, need to be savvy and cautious when it comes to Black Friday hype. Don’t get caught up in the deal or the hype!