'Absolute make or break': Holidays are paramount for Calgary small businesses

The holiday season is the most important time of the year for many of Calgary's small businesses, with the weeks leading up to Christmas promising to make or break their fortunes. 

But a large portion of buyers are either turning to online shopping instead of in-store purchases or heading to big box stores in search of better deals, reports suggest.

A report from the Retail Council of Canada and Leger shows 38 per cent of holiday shopping in Canada is expected to be done online. 

The same report suggests Albertans are expected to spend around $970 this year, a 10 per cent increase from last year, with a majority of shoppers expected to cash in on Cyber Week deals.

"Albertans are more likely to consider Cyber Week offers more than other provinces we saw, with 72 per cent citing that they would look for those deals during Cyber Week versus only 63 per cent on the national average," said Santo Ligotti, vice-president of membership and marketing at the council.

According to Deloitte Canada's 2024 Holiday Retail Outlook, 71 per cent of consumers plan to buy gifts from Amazon, while 61 per cent said they would make their purchases at other mass merchants.

It's a trend that Dakota Kidby, marketing manager for the Marda Loop Business Improvement Area, wants to discourage.

She said small businesses rely on Calgarians to shop locally instead of spending their dollars at large online retailers such as Amazon, Walmart and Costco.

"I would say Christmas time is the time of year that merchants are making most of their revenue," Kidby said.

Boutiques and specialty retailers likely get the largest boost from holiday shoppers, according to Kidby. 

She noted many businesses still haven't recovered from the financial strain of lockdowns brought on by COVID-19. Compounding factors such as localized construction making some businesses difficult to access, plus the recent Canada Post strike, have only made things worse.

"All of our businesses need support more than ever this year," Kidby said.

Wendy Bach, owner and founder of Artesano Galleria in Inglewood, has been in business in Calgary for 25 years.

She said the six weeks leading up to Christmas are crucial for her business.

"Absolute make or break," Bach said.

"For a lot of retailers, it means staying alive or closing the doors each and every year, especially this year. This year, I feel, was an unprecedented year for small businesses, especially mine."

She said some factors, such as inflation, are out of her control, and she's noticed her customers are also feeling a pinch.

"We, I would say, have a middle-class to upper-class clientele, and they're all truly feeling it this year," Bach said.

It's not just gift-selling businesses that benefit from the holidays, however. Kidby said caterers, salons, cafes and wine shops are some examples of retailers that also rely on the holidays to bolster their sales.

Calgary's smaller brick-and-mortar retailers are always looking for ways to stand out and lure back shoppers from Amazon and the big chains. 

Kidby said small businesses in Calgary neighbourhoods like the one she represents sometimes attract customers because they offer a specific kind of holiday shopping experience.

"Any place where folks can go grab a coffee, they have restaurants available, they can grab a glass of wine in between their shopping … a really eloquent, esthetically pleasing area in Calgary," she said. 

"I would say it's a tradition for Calgarians to go frequent these areas because it's where all of the most unique gift finding happens."

'Best bang for their buck'

According to Ligotti, people in Alberta are looking for more value for their dollar wherever they can find it.

"It's about being mindful, and mindful means who am I buying for? What am I buying and where am I going to go to buy it? Where am I getting value? It could be value based on pricing. It could be value on flexible payment options," Ligotti said.

Bach, the Inglewood business owner, said value and quality are paramount to her customers, who are trying to make the most of the money they spend.

"They're looking for the best bang for their buck. And so they are — and myself included — are definite bargain hunters," she said.

When her customers are looking for value, Bach said they gravitate toward consumable items, such as some of the gourmet food items her store carries.

"Consumables are very hard to miss the mark on," she said. "If you buy somebody something they can eat, or spices … it's hard to make an error and it's very affordable."

Bach described her business, Artesano Galleria, as two stores in one. It's part home decor store and part kitchenware store.

She said she's thankful her business carries Jellycat, a line of plush items, because they've drawn several people to her storefront.

"[They're] highly collectible and highly coveted, and thank God we have that … they are definitely carrying the burden of this year," Bach said.

Albertans feeling the pinch this year

According to the BMO Real Financial Progress Index, nearly 80 per cent of Albertans are tightening their belts this holiday season.

About half of people in the province said thinking about holiday spending gives them anxiety, and about a quarter said they are not confident they'll be able to pay off holiday bills on time, according to the report.

A report from Deloitte indicates a common thread nationwide — Canadians are expected to spend about 10 per cent more during the 2024 holidays compared with last year.

According to Deloitte's 2024 Holiday Retail Outlook, about half of all people across the country are concerned about housing costs and rent increases, while around a third are worried about paying for holiday gifts and credit card debt.

The reports appear to show that some Albertans are feeling the pinch on their wallets this year. 

In response to concerns about the rising cost of living, the federal government announced in November that it would introduce a tax break on some goods over the holidays. It is also sending $250 cheques to people who earned $150,000 or less in 2023.

The tax holiday starts on Dec. 14 and runs through Feb. 15, 2025.

Ligotti said Albertans are more likely to hunt for deals due to inflation than their counterparts in British Columbia and Ontario.

He added Albertans are expected to spend most of their holiday budget on clothing, food and alcohol. 

Ligotti said reports that focus on intended spending can be a good indicator of how people are faring financially; however, organizations will have a better picture of how things went after the holidays are over.