Despite indications of a waning interest in the Buy Canadian movement, many business owners remain optimistic about sustained growth during Black Friday and the holiday shopping season. The surge in the movement originated earlier this year as consumers shifted to Canadian-made products in response to trade tensions and threats of annexation from the U.S. president. However, recent data indicates a decline in the trend.
Statistics Canada’s latest report reveals that around 70% of businesses did not observe an increase in sales of Canadian products over the past six months. Only 13% reported a sales increase, with the rest uncertain. Factors such as inflation and the reduction of Canada’s counter tariffs on U.S. goods have made American products more affordable, possibly leading consumers back to old purchasing habits.
A recent Bank of Canada survey showed that most people were unwilling to pay more than an extra 10% for a Canadian-made product. François Neville, a strategic management professor at McMaster University’s DeGroote School of Business, noted a shift in public sentiment towards prioritizing Canadian goods, although the initial fervor has diminished.
Some businesses, however, continue to experience strong support for Canadian products. For instance, clothing retailer Province of Canada has seen a significant increase in sales each month compared to the previous year. Shop Makers, a company featuring products from local artists and entrepreneurs, has opened several new stores this year and witnessed substantial sales growth.
A survey by the Business Development Bank of Canada (BDC) forecasts that Canadian households will spend an average of $943 on holiday gifts this year, with $553 expected to be spent on local products and services, marking an increase from last year. BDC’s chief economist Pierre Cléroux emphasized that supporting local products creates jobs in Canada and highlighted that 46% of Canadians intend to spend more on Canadian goods and services this year.
By redirecting an additional $100 of their holiday budget towards Canadian products, Canadians could inject about $13 billion into the economy, according to BDC. Some shoppers at Toronto’s Eaton Centre expressed their intention to prioritize Canadian purchases, emphasizing the impact of individual choices on the economy. However, price considerations remain crucial for many consumers when making purchasing decisions.