TORONTO - Now that American retailers have landed in Canada, prepare for the fireworks as stores launch massive promotions and deep discounts in an attempt to draw shoppers.
The arrival of Target and Marshalls — and the expansion of Walmart — hasn't exactly revolutionized shopping, but it has laid the foundation for what industry watchers say will be a bigger fight for marketshare next year.
"We can expect to see some very desperate retailers," said Brynn Winegard, a marketing expert at Winegard and Company.
"A lot of organizations will be vying for the same amount of consumer dollars."
For shoppers, that could mean significant price reductions, "Buy One, Get One Free" offers and similar promotions, while price matching and lax exchange rules set precedents.
And the spectacle won't be limited to the big U.S. chains, as even domestic companies like Canadian Tire (TSX:CTC.A), Joe Fresh and Indigo will ramp up the spectacle around their own operations.
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Target Canada
The Details: Nov. 29 - Dec. 1 What You Get: Doors open from 7 a.m. until 11 p.m. on Nov. 29, guests who spend $75 or more storewide on Nov. 29 will receive a $15 Target GiftCard redeemable on their next purchase (one GiftCard per guest). Target REDcard cardholders will also receive an additional 5% off almost everything in the store. Target will also have deals on everything from electronics, toys, kitchenwear and up to 70 per cent off women’s, men’s and kids’ apparel and accessories. Shop <a href="http://flyers.target.ca/flyers/targetcanada-weeklyad?type=1&locale=en&flyer_run_id=13425#!/flyers/targetcanada-weeklyad?flyer_run_id=13425" target="_blank">here</a>.
Holt Renfrew
The Details: Nov. 28 - Dec. 1. What You Get: Save up to 40% off selected fall women's and men's designer fashion, accessories and shoes.
Amazon.ca
The Details: Now until Nov. 30 What You Get: Deals on products such as DVDs, juicers, electronics, watchers, tools, books and more. Shop <a href="http://www.amazon.ca/b/ref=amb_link_396273662_2?ie=UTF8&node=6054205011&pf_rd_m=A3DWYIK6Y9EEQB&pf_rd_s=center-B1&pf_rd_r=1JBJVJTVHFA6SMA09E32&pf_rd_t=101&pf_rd_p=1674768462&pf_rd_i=915398" target="_blank">here</a>.
Karen London
The Details: Nov. 28 - Dec. 1 What You Get: 30% off the entire site when you use the code: KLBLACKFRIDAY and free shipping on orders over $100. Shop <a href="http://www.karenlondon.com/" target="_blank">here</a>.
Mr. Kate
The Details: Nov. 29 - Dec. 1 What You Get: 50% everything on the website including necklaces, earrings and bracelets. Shop <a href="http://www.mrkate.com/" target="_blank">here</a>.
Puma
The Details: Online only for Canadians, from now for a limited time. What You Get: Fleece hoodies for $50 in men's and women's styles. Shop <a href="http://www.shop.puma.ca/on/demandware.store/Sites-CA-Site/en_CA/Default-Start?affID=54412&mktID=AFF:54412:PepperJam:2-102634:CA" target="_blank">here</a>.
BargainMoose.ca
The Details: Now What You Get: Links to dozens of sales happening online. Shop Online <a href="http://www.bargainmoose.ca/canada-black-friday-sales">HERE</a>
Cake Beauty
The Details: Nov. 29 - Dec. 1 What You Get: <a href="http://coupons.bargainmoose.ca/cakebeauty.com#view_coupon_36561" target="_blank">When you enter the code pinkfriday</a> at the online checkout, you will received 40% off all items including dry shampoo, hand cream, body scrub and body butter. Shop <a href="http://www.cakebeauty.com/" target="_blank">here</a>.
Danier
The Details: Now until Dec. 1 What You Get: Major discounts on men's and women's leather jackets, purses, leather leggings and more. Shop <a href="http://digital.danier.com/i/210687" target="_blank">here</a>.
Lenscrafters
The Details: Nov. 27 - Dec. 2 What You Get: 50% off prescription sunglasses from Nov. 27 to Dec. 2 and buy two accessories and get a third accessory of equal or lesser value free until Dec. 31. Shop <a href="http://www.lenscrafters.ca/lc-ca/webapp/wcs/stores/servlet/OrphanView?catalogId=11652&langId=-1&storeId=10852&page=BlackFridayOffers&cid=cpc:GL000000:Black_Friday:General_Terms" target="_blank">here</a>.
The Brick
The Details: Now for a limited time What You Get: 75% their ticket price for leather sofas when you purchase either a matching loveseat or chair, 30% off the ticket price of all bedroom and dining packages. Shop <a href="http://www1.thebrick.com/brickb2c/jsp/index.jsp" target="_blank">here</a>.
Mendocino
The Details: Nov. 28 - Dec. 2 What You Get: Customers get a 20% off incentive card on every purchase between Nov 28-Dec 1, which can be used towards their next purchase between Dec 7-18. This is on top of up to 60% off Black Friday specials.
M
The Details: Black Friday weekend What You Get: At all 12 M locations across the GTA, customers will find Black Friday specials for $29 and under. From the season's most coveted runway trends including faux fur vests ($15), vegan leather moto jackets ($29), outerwear ($29) and holiday dresses ($29).
Forever 21
The Details: Nov. 20 - Nov. 29 What You Get: Forever 21 is offering a Black Friday pre-sale starting on Nov. 20 across Canada and online with up to 50% off select items. The retailer will also be having a Black Friday sale on Nov. 29 with special yellow tag deals on select products. The collection includes winter staples such as heavy knit sweaters, quilted faux leather bomber jackets and winter accessories starting at $3. Select locations will also offer scratch cards for 10% or 15% off purchases made in-store to the first 600 customers through the door on Black Friday.
ALDO
The Details: Now, for limited time offer What You Get: 30% off sale shoes and boots plus an extra 25% off select dress shoe styles online and in stores. Shop Online <a href="http://www.aldoshoes.com/ca-eng/sale">HERE</a>
Sears
The Details: Deals are on now as part of their <a href="http://www.sears.ca/catalog/sears-days/4294557477?intid=hp_novwk22013_Marquee_Sears_Days" target="_blank">Sears Days campaign</a>. What You Get: 50% off women's and men's clothing, shoes, appliances, toys and more. Plus get free shipping to almost everywhere in Canada when you spend $99 or more Shop Online <a href="http://www.sears.ca/catalog/sears-days/4294557477?intid=hp_novwk22013_Marquee_Sears_Days">HERE</a>
The Bay
The Details: Deals are being offered now through Friday, Nov. 23 What You Get: There will be flash sales and online deals at all The Bay locations. <a href="https://www.facebook.com/hudsonsbay" target="_hplink">Check out their Facebook page for full details</a>. Stores will open at 7 a.m. on Black Friday. Shop Online <a href="http://www.thebay.com/webapp/wcs/stores/servlet/en/thebay" target="_hplink">HERE</a>
eLUXE.ca
The Details: Happening now for a limited time. What You Get: 50% off select dresses, skirts, bags, pants and bags. Shop Online <a href="http://www.eluxe.ca/en/sale.html/">HERE</a>
Best Buy
Details: Nov. 29 to Dec. 1 What You Get: N/A
NEXT: Craziest Black Friday Moments
Black Friday Romance?
<a href="http://www.nydailynews.com/life-style/black-friday-shopping-spree-love-story-long-island-couple-article-1.414121" target="_hplink">According to the <em>New York Daily News</em></a>, two individuals have Black Friday to thank for their unique love-at-first-sight story. The two lovebirds struck up conversation while standing in line at a Long Island Kmart. The small talk turned into sweet talk as the two waited in line together for a total of seven hours before doors opened. Fast forward two years, and the couple is happily married with fond memories of the day they met, saying, "Black Friday will always be a memorable day for us. That was the day that changed our lives." (Getty photo)
Woman Shakes Up Shoppers With Death Threats
Shoppers were shaken up last year at Toys "R" Us in Wisconsin, when a woman named Lanessa Lattimore threatened to shoot shoppers who were waiting in line outside the store. A confrontation began after the woman tried to cut the line of several hundred people. <a href="http://articles.cnn.com/2010-11-26/justice/wisconsin.shopper.threat_1_gun-threat-black-friday-shopper-huge-lines?_s=PM:CRIME" target="_hplink">Lanessa told CNN</a>, "Everybody was cutting in line. But there was one girl who was threatening me, so I told her that I'd shoot her." Although no weapon was found, she was arrested and charged with disorderly conduct. (Getty photo)
Kim Kardashian: Best Black Friday Buddy?
A poll conducted by AOL back in 2009 revealed that Kim Kardashian was voted the person you'd most like to go shopping with on Black Friday, <a href="http://www.nydailynews.com/gossip/online-poll-kanye-west-named-year-biggest-turkey-kim-kardashian-best-black-friday-shopper-article-1.165773" target="_hplink">as the NY Daily News reported</a>. She even beat out Victoria Beckham for the best shopping buddy title. Would you want to spend Black Friday shopping with Kim? Something tells us that the poll results would be <em>quite</em> a bit different this year... (Getty photo)
... And Kayne West, The Biggest "Turkey"?
The same AOL poll that voted Kim K. as the "best shopping buddy" also revealed that Americans think Kanye West was the biggest "turkey" of 2009... whatever that means. Bear in mind that this poll took place shortly after his Taylor Swift interruption scandal at the Grammy's that year. <a href="http://www.nydailynews.com/gossip/online-poll-kanye-west-named-year-biggest-turkey-kim-kardashian-best-black-friday-shopper-article-1.165773" target="_hplink">According to the New York Daily News</a>, Kanye beat out the likes of Jon Gosselin, Levi Johnston, Spencer Pratt,and Michael Lohan. In other words, it sounds like being called a "turkey" is just a kinder way of saying "biggest D-bag." (Getty photo)
Wal-Mart Employee Trampled To Death
A tragic story took place at a Wal-Mart in Long Island in 2008. <a href="http://www.nytimes.com/2008/11/29/business/29walmart.html?ref=blackfriday" target="_hplink">As the <em>New York Times</em> reported</a>, an employee by the name of Jdimytai Damour got caught amidst utter chaos in a stampede on Black Friday, resulting in his ultimate death. Sources say that Damour was literally trampled to death by crazed shoppers, although no specific individual could be called out and held responsible for the fatal accident. Wal-Mart was also slapped with a $75K fine, according to the <a href="http://www.nydailynews.com/new-york/7k-fine-wal-mart-black-friday-stampede-death-article-1.404243" target="_hplink"><em>New York Daily News</em></a>.
Two Men Shot Dead At Toys "R" Us
A heated argument between two men lead to a deadly shooting at a Toys "R" Us in Palm Desert, California on the biggest sales day back in 2008. <a href="http://articles.cnn.com/2008-11-28/us/black.friday.violence_1_wal-mart-worker-fleming-busiest-shopping-days/2?_s=PM:US" target="_hplink">According to CNN</a>, police still aren't completely certain about the origin of the fight, although sources believe that it was unrelated to the timing of Black Friday sales that day. Luckily, no innocent shoppers were injured during the shooting.
Shopping Cart Heist
A strange shopping cart heist took place at a Toys "R" Us in the Bronx in 2009, <a href="http://www.nydailynews.com/new-york/bronx/shopping-cart-thefts-began-black-friday-500-bronx-toys-article-1.435826" target="_hplink">the <em>New York Daily News</em> reported</a>. Thieves stole 500 shopping carts starting on Black Friday and continued to nab carts throughout the holiday season. Shoppers were left annoyed as they were forced to carry all of their purchases, since no carts were anywhere to be found. Police suspect that the carts -- which cost a hefty $200 a piece -- were either stolen by gang members to sell metal scraps for money or taken by homeless people who use them to carry their belongings. (AP Image)
Hotel Deals For The Extreme Shopper
When stores in Indianapolis had a super successful Black Friday back in 2009, hotels decided to try and take advantage of visiting shoppers by targeting the <em>eve</em> of Black Friday. <a href="http://www.usatoday.com/money/industries/retail/2010-11-14-black-friday-hotels_N.htm" target="_hplink">According to <em>USA Today</em></a>, the Conrad Hotel was among the first to notice this opportunity and advertised to serious out-of-town shoppers who planned on rising early to hit the sales. The deal offers $99 for a room on Thanksgiving night, as well as a personal shopping appointment at Nordstrom, a free coffee and a free shoeshine. Other hotels have also developed similar deals to cash in on the night of Thanksgiving, too. It sure beats camping out overnight for the doors to open in the morning. (Getty photo)
Shooting Over Flat Screen TV
Another story that will make your heart sink: the tragic shooting of a man in Queens who was shot by robbers on Black Friday back in 2009, as the<a href="http://www.nydailynews.com/news/crime/black-friday-mayhem-queens-man-shot-flat-screen-tv-thugs-t-fit-set-getaway-car-article-1.413993" target="_hplink"> <em>New York Daily News</em></a> first reported. The elderly man was walking with his new flat-screen TV in a parking lot, when robbers ruthlessly shot him dead in an attempt to steal his new purchase. However, the TV didn't fit in the trunk of their getaway car, and witnesses reported that they dumped the TV on the street as they quickly fled the scene of the crime. (Getty photo)
Much of this competition was supposed to play out earlier this year when Target first set foot in the country amid a level of hype rarely seen in the industry. But the retailer failed to impress consumers, especially those who had loyally crossed the border to shop at its U.S. Target locations.
A survey released by Level5, a brand strategy adviser, found that consumer sentiment for Target is on level with the struggling operations of Sears Canada.
Some customers likened Canada's version to "Target Lite," with lackluster prices and an atmosphere that, despite renovations, still had the feel of the Zellers outlets that occupied the same spaces for years before.
"First impressions are big, and so Target's not getting off to a great start," said Bobby Hagedorn, a retail industry analyst at Edward Jones, who said the misstep gave competitors a lead.
"All the Canadian companies are now running and seem to be more prepared than they were before. We're in a period of transition."
Despite the time spared, the U.S. challengers are plentiful and diverse, with big names like Microsoft setting up shop while more niche retailers, such as Zara Home, and women's clothing shops Ann Taylor and Black House, White Market, vie to corner their own segments.
In department stores, Hudson's Bay Co. (TSX:HBC) struck an agreement to bring Saks Inc. to Canada while next year upscale retailer Nordstrom enters the mix nationwide with locations acquired from Sears Canada (TSX:SCC).
One of the most competitive spaces will be grocery stores where intermittent price wars have waged on for years. The recent rollout of competitively-priced produce sections at Walmart supercentres has added to the pressure, while Target also launched a mini-supermarket inside its stores.
Add Amazon.com Inc. to the list after the Internet company opened a virtual supermarket in Canada that ships non-perishable food items directly to consumer's homes.
In response, Canadian grocery chains have ramped up consolidation to grab a stronger market presence and more buying power with manufacturers, which helps keep their prices lower. Earlier this year, Loblaw (TSX:L) agreed to buy Shoppers Drug Mart Corp. (TSX:SC) while Sobeys picked up the Canadian assets of U.S. grocer Safeway.
It's debatable how much the heightened activity in Canada has convinced shoppers to stay within the country.
Data from Statistics Canada shows a climb in the number of trips to the United States throughout the year, encouraged by the introduction of higher duty-free allowances and a steady exchange rate.
In September, 2.74 million cross-border daytrips were made by car, a 1.2 per cent increase from the busy August summer travel season when 2.67 million trips were made.
Year by year, the number of same-day trips are rising too. In 2010, Canadians made 26.3 million trips, rising to 31 million the next year, and 32.4 million in 2012.
While it's difficult to determine how many of those were shopping trips, the data is still an indication that Canadians aren't staying home in huge numbers.
Niagara Falls resident Jessica Manning says the U.S. is a more attractive place to shop for anyone who can muster up the time.
"They enjoy Canadians shopping there, and they're willing to help you more, I find, than in Canada," she said. "When I shop here (in Canada) I find there are very few sizes left, while in the states they have better stock."
Other longtime cross-border shoppers have scaled back on the number of trips they make, including Toronto-area resident Anne Yau. She said that she isn't spending more at home, even with the wider selection of U.S. retailers in Canada.
"To be honest, I haven't even gone to the Target since it moved here," she said. "Everyone has said it's still not as good as the states, and they don't carry as many products. The deals are not as good."
Opinions like that are painful for retailers as they're a sign that Canadians, who benefited from widespread sales and a strong loonie during the economic downturn, now expect those rock-bottom prices.
Over several years, that could have a detrimental impact on the retail industry because deep discounts aren't as effective in stimulating the economy, said Winegard.
Retailers also face tepid consumer spending growth, which in recent months has inched ahead only slightly. Economists predict that Canadians will remain cautious about their finances and keep spending low into next year.
In September, home renovations retailer Rona (TSX:RON) chief executive officer Robert Sawyer emphasized the negative impact of the U.S. entrants, telling an industry conference that "in Ontario, it’s a bloodbath for every retailer."
"It's difficult, not only for the hardware business," he said.
Executives at Target have assured investors that while they may be knocked down, they're still in the game. Chief executive Gregg Steinhafel said last month that the launch has "fallen well short of expectations" but that he wants to "redefine" the company as a one-stop shop for Canadians.
Already Target has launched advertisements that emphasize its weekly flyer discounts, and its position as the "all in one place" holiday shop.
But Target won't be alone in that quest as other retailers will follow a similar plan to "increase their basket size," an industry term used to track how many items a shopper piles into their cart each visit, said Winegard.
The most effective way to fill carts is through "Buy One, Get One Free," and major discounts. However, Winegard warned that while it has an immediate upside for consumers, it'll have a ripple effect on the industry.
Too many deals typically result in a practice she calls "pantry loading," which is when people stock up on non-perishables, such as mouthwash and clothes, and then visit stores less frequently to spend money — a factor that could knock the wind out of retail sales figures.
Those discount practices will also filter out weaker companies within three to five years, she said. In clothing, that could force smaller label brands and boutiques to shut their doors.
Winegard said that one lesson many U.S. retailers haven't learned is that Canada is a diverse country with buying patterns that vary by region. What works in Toronto won't necessarily catch on in Edmonton or smaller cities in Quebec, for example.
Those factors could drive retailers to get creative with how they sell to consumers.
"It's what capitalism boasts," she said.
"It's a great time for innovation and viable competitors to really sharpen their chops. The ones that don't do that will perish."
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