(Toronto) It seems increasingly difficult to distinguish Black Friday from Cyber Monday.
These two days marked by discounts aimed at enticing the consumer merge into one another, as businesses are increasingly in the habit of extending them for more than 24 hours.
“Black Friday and Cyber Monday took place over a weekend. Now it lasts for a season,” says Shopify President Harley Finkelstein.
The time line between these two days could become even more blurred in 2022 as the pandemic has transformed consumer shopping habits.
During COVID-19, many businesses resigned themselves to closing their doors. Digital sales have exploded. And even though the restrictions have been gradually lifted, many consumers have not lost the habit of shopping online, but not as much as some chains had expected.
“Online shopping has grown in popularity during the pandemic, but is on the decline as people return to stores,” said Lisa Hutcheson of consulting firm JC Williams Group. E-commerce spending fell 11.5% year on year. »
This return to old habits surprised Shopify, which was counting on an increased boom in online shopping.
“It is now clear that the bet has not been won,” Chief Executive Tobi Lutke acknowledged in a July statement announcing the layoff of 10% of the company’s workforce.
The stock hit $212 during the year, but has tumbled to $50 in the past few days.
Results: many are counting on the long weekend of Black Friday and Cyber Monday.
“Black Friday and Cyber Monday is like our Super Bowl,” says Finkelstein. Our energy level is currently very high. »
Shopify commissioned a study of 24,000 customers and 9,000 small and medium businesses across the globe. According to the results, 59% of Canadian respondents planned to spend the same amount as last year on Black Friday and Cyber Monday weekends. This percentage jumps to 74% for Canadian respondents aged 25 to 34.
Finkelstein finds it difficult to make predictions. He believes things will be different this year as the supply issues that had plagued businesses appear to be resolved and the big wave of the Omicron variant of COVID-19 does not appear to be repeating itself.
“This Black Friday/Cyber Monday seems less hectic than last year. There are fewer supply problems, there are more businesses open. The inventory is bigger. Delivery companies have planned their capacity better,” he says.
But one big cloud continues to cast a shadow: inflation.
Michelle Wasylyshen of the Retail Council of Canada says “consumers have been tightening their belts a bit” over the past few months, but they’re still looking to spend around $790.
“The difference with last year is that they are looking for more meaningful, more practical gifts,” she says. They plan to give gifts to fewer people or give less per person, but they will buy. »
The term “Cyber Monday” was coined in 2005 by the US National Retail Federation who found that online sales skyrocket on the Monday following Black Friday.
“We are not seeing the same thing this year”, underlines Mme Hutcheson.
She believes that consumers will have adopted an “omnichannel” strategy, which integrates all channels for selling products and services.
Mr. Finkelstein likes this word. “There is no longer a struggle between online commerce and in-person commerce. »
“Talking about omnichannel to describe a strategy will soon be as reassuring as saying color television. This is the norm, as consumers shop everywhere, really everywhere. »