As Canadian retailers make a bigger push for Black Friday sales, Vancity is cautioning consumers to be wary of deals that really belong on Santa’s naughty list.
Many of those door-crashers and markdowns drawing some shoppers to camp out in front of stores this coming Friday (November 28) are actually original prices that have been inflated just prior to sales day before being discounted, according to a November 24 report from the B.C.-based credit union.
But those sales techniques have been effective.
Vancity found spending among its Visa cardholders was up 16% last year during the Black Friday to Cyber Monday period.
Mohamed Ladak, Vancity’s vice-president of payment solutions, said he expects spending to go up even further this year.
“Sometimes these prices tend to be marked down but they’re not as marked down as people would think,” Ladak said.
“It would be good for them to look at the final price rather than the savings.”
A poll conducted by the Mustel Group on behalf of Vancity found 94% of respondents in the Lower Mainland and Victoria believed Black Friday prices were, on average, 23% lower than during the rest of the year.
Furthermore, 76% of those polled thought retailers were either losing money or taking in less profit on Black Friday sales items.
Ladak said he’d like to see shoppers conducting more thorough research before making purchases by using shopping apps, and talking to friends and family who may be more knowledgeable about certain purchases.
The report urges shoppers to avoid buying toys, winter apparel, luxury goods and bed linens on Black Friday, as those high-demand items all get discounted closer to or after Christmas.
Vancity also suggests consumers bring a smartphone with them on Black Friday so they can research potential impulse purchases before hitting the cash register.
