Shoppers flocked to malls Thursday to take advantage of Boxing Day The deals are made more attractive by the federal government’s GST holiday, but some say the lower prices aren’t enough to keep up with the country’s cost of living.
For two months, many items, including children’s toys, video games and consoles, snacks, wine and restaurant food, are exempt from GST or HST, depending on the province. The tax break has encouraged some consumers to take advantage of Boxing Day sales at their local retailers.
Nakul Singal said he came to Fairview Mall in Toronto Thursday morning with his partner to look for deals.
“Every year we usually get good deals,” said Singal, who added that he waits until Boxing Day to get new headphones. “It’s good to shop during this time.”
He added that while the tax break has helped his family cope with the cost of food, he would like the government to do more to help Canadians cope with the high cost of living, particularly housing.
“I hope they can stop inflation,” he said. “We’re in trouble right now.”
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The Retail Council of Canada’s vice-president of federal government relations, Matt Poirier, told The Canadian Press last week that Boxing Day in particular should get a boost because of the temporary pause.
However, he said businesses, including those with older payment systems, faced hurdles when trying to implement the tax break on short notice and even determining which items were eligible.
An RBC Economics report released earlier this month showed that retail spending slowed in November, with holiday spending slightly below 2023 levels over the Black Friday weekend. Spending on hobbies, toys and games declined significantly after Nov. 21, RBC economist Carrie Freestone wrote the day the tax break was announced.
“Typically, spending on popular children’s gifts increases as the holiday season approaches,” Freestone wrote.
But even with November’s decline, Canada is likely on track to see an uptick in retail spending per person in the fourth quarter for the first time since mid-2022, she wrote.
Joey Comia-Orellano, assistant manager at a GameStop store north of Toronto, said the store has seen an influx of customers since the tax break was announced. Buyers were eager to take advantage of the tax exemption, he said.
“We attracted buyers before Boxing Day,” he said.
Comia-Orellano added that he expects the store to be busier on Thursday as consumers look to save with Boxing Day deals combined with the tax break.
“I noticed a lot of people were buying more games, a lot of controllers and definitely a lot of consoles as well,” he said.
Meanwhile, Raj Jeetu, another shopper at Fairview Mall on Thursday, said although he had already taken advantage of the restaurant tax break several times, he was skeptical about what effect it would bring to Canadians in the long term.
“I don’t know if it’s going to help much. I guess prices really need to come down,” he said.
For Comia-Orellano, customers have told her that even if tax breaks and Boxing Day deals don’t help solve the overall affordability crisis, it’s still worth saving.
“It’s necessary, it gets hard during the holidays,” he says. “It’s almost like a little break for people on taxes, which doesn’t necessarily make things a little more affordable.”
© 2024 The Canadian Press