At first glance, it may seem like the deals have never been better as posters in store windows and online ads churn out a steady stream of holiday sales.
But some consumers say the discounts are more hype than real, giving shoppers the illusion of a bargain rather than actually saving money.
it is called shrinkage In the mall.
Retail expert Shobhit Khandelwal said, “Promotions look good this year, but regular prices have often gone up, so if something is on sale it could be more expensive than one might expect.”
Holiday shopping: Canadians appear willing to spend on toys amid rising prices, experts say
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Higher regular prices, lower percentage discounts and fewer items on sale are just some of the trends consumers say they’ve noticed at Canadian stores in recent weeks.
Online shoppers also say they’ve faced high limits on free shipping, surcharges on some returns, and low discounts overall.
While deals are now spread out over longer periods – giving people more time to hunt for bargains – experts say the rising cost of living is still leaving some consumers feeling the squeeze.
New research from Interac Corp found that more than seven in 10 Canadians say that rising inflation has made taking control of their money more important than ever.
For those shopping on a budget, retail experts say there are some tips and tricks to save cash and not get caught up in the deal illusion.
“We’ve seen a return to promotion this holiday season, but it’s important to pay attention to the fine print,” said Tamara Szums, Canadian retail industry consultant for The NPD Group.
“If the sale is up to 40 percent off, the consumer really needs to be aware of ‘up’,” she said. “Not every item in the store is going to be included in the sale, so you need to try not to splurge.”
Szums said consumers should make a list and research prices before making a purchase so they know whether something is really a good deal.
While inflation has raised prices in some stores, other retailers have used a variety of methods to handle rising costs.
In grocery stores, for example, food manufacturers use shrinkwrap to keep prices the same — or slightly higher — by shrinking the product.
It is a technique used in other areas of the retail industry, including the apparel sector.
“When we’re talking about fashion, the closest thing to an ingredient in food is clothing,” Szms said. “If your favorite sweater used to be 100 percent cashmere, you should check the label carefully before buying it again. Now it’s probably 90 percent cashmere and 10 percent polyester.
She added that advances in fabric technology may mean that the new blended fabric is of a higher quality, but it is important for consumers to be aware of the change.
Khandelwal said holiday discounts have always been hit or miss as retailers try to draw customers into stores with doorbuster deals while keeping other items at regular price.
The difference this year is that inflation is making all prices — even sale prices — higher, said co-founder of startups ShiftLabs and Minoan Experience.
The trick for shoppers trying to rein in spending, he said, is to not buy more than they need to — even when it’s on sale.
“Make a list and stick to it and if you end up spending too much, most retailers have good return policies.”
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