Shoppers flocked to stores on Boxing Day to make the most of the tax holiday, as many face rising living costs.
On Boxing Day, many shoppers headed to malls across Canada, eager to grab post-holiday deals made even more attractive by a temporary GST holiday. This tax break, which eliminates the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on selected items for two months, has drawn consumers looking to save on everything from toys and video games to food and wine.
Nakul Singal, a shopper at Toronto's Fairview Mall, visited with his partner to score some Boxing Day bargains. He was particularly interested in buying new earphones, a purchase he had been holding off on until this special shopping day. While the tax break has helped ease some of the burden of rising food costs, Singal mentioned that more needs to be done to address the growing cost of living, particularly housing.
"I hope they can control inflation," he said, reflecting on the struggles many Canadians face due to rising prices.
The Retail Council of Canada's Matt Poirier noted that Boxing Day shopping was expected to get a boost due to the tax holiday, but he also pointed out that some businesses were encountering difficulties in implementing the tax break quickly, especially those with older payment systems.
A recent RBC Economics report indicated a slowdown in retail spending in November, with holiday shopping falling slightly behind last year's numbers, particularly after the GST holiday was announced on November 21. Spending on children's gifts, toys, and games was especially affected, with fewer purchases being made after the announcement of the tax break.
Despite this dip in retail spending, there are signs of recovery. According to RBC economist Carrie Freestone, Canada is likely to experience a modest increase in per-person retail spending in the fourth quarter of 2024, the first such rise since mid-2022.
Shops like GameStop in north Toronto have already seen a significant uptick in customers since the announcement of the GST holiday. Joey Comia-Orellano, an assistant store manager, shared that many shoppers were visiting ahead of Boxing Day to take advantage of the savings. He expected even more traffic on Thursday as shoppers combined the tax break with Boxing Day discounts to maximize their savings.
"I've noticed a lot of people buying more games, controllers, and consoles," Comia-Orellano said.
While the tax break is a welcome relief for some, not all shoppers are convinced it will make a significant impact on long-term affordability. Raj Jeetu, another Fairview Mall shopper, expressed doubts about whether the government’s efforts would bring about lasting change. "I don’t know if it’ll help much. Prices need to come down overall," he said.
Despite the ongoing concerns about rising costs, many shoppers, including Comia-Orellano, see the tax break and Boxing Day deals as a small but necessary financial reprieve. "It’s hard around the holidays," he said. "This gives people a bit of a break when it comes to taxes."
Across the country, shopping malls in Vancouver also saw large crowds, with shoppers flocking to McArthurGlen outlet mall for discounts. Vancouver International Airport even warned travellers about high traffic volumes near the airport due to the influx of Boxing Day shoppers.
