As the holiday shopping season unofficially kicks off this Saturday, Canadian small businesses are making an urgent appeal to shoppers across the nation. Small Business Saturday, falling on November 29 this year, represents a crucial opportunity for local enterprises facing economic headwinds.
The Make-or-Break Holiday Season
New data reveals the staggering importance of holiday sales for Canada's small business community. According to the Canadian Federation of Independent Business (CFIB), approximately one-third of Canadian small businesses are relying heavily on holiday season sales to sustain their operations.
"The holiday season is make-or-break for thousands of small businesses across the country," emphasized Ryan Mallough, CFIB vice-president of legislative affairs, in a recent news release. "We've seen a really great uptick in people buying local and Canadian goods as the Canada-U.S. trade battle continues."
Economic Challenges and Consumer Behavior
This year presents particular challenges for small retailers. The CFIB's business barometer indicates that more than 70 percent of small businesses anticipate either flat or reduced sales this season amid ongoing economic uncertainty.
Consumer spending patterns reflect this cautious outlook. A recent Bank of Montreal survey found that approximately 40 percent of Canadians plan to reduce their holiday spending due to rising living costs. Additionally, over 40 percent intend to cut back on travel and decorations.
The Power of Local Shopping
Despite economic pressures, there are encouraging signs of consumer support for small businesses. Research from Xero indicates that 65 percent of Canadian shoppers plan to support small businesses during this holiday season, while 80 percent feel genuine pride when purchasing from local establishments.
Mallough highlighted the significant community impact of shopping locally. "When you shop local, 66 cents of every dollar goes back into the community," he explained. "This holiday season, support Canadian-owned businesses, including franchises, or check out your local business first instead of ordering from an online giant. Let's make every dollar count."
The tradition of Small Business Saturday, which began in 2010 and occurs the day after Black Friday, has evolved into a major shopping event in both Canada and the United States. According to the U.S. Chamber of Commerce, the day can account for 20 percent of annual sales for American small businesses.
As Mallough concluded: "We want to see that trend continue on Small Business Saturday to kick off a strong finish to what has been an extremely turbulent year for small businesses."
