Debt levels, weak loonie could mean tough holiday season for retailers
Posted November 24, 2015 10:49 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – You may be feeling more like Scrooge than Santa this holiday season and into next year.
A new report looks into the struggles of retailers across Canada.
It’s been a tough year and things aren’t expected to get much better anytime soon. Michael Burt with the Conference Board of Canada says the weaker dollar is just one factor.
“A lot of what we buy from retailers is imported. All those things cost 25 per cent more today than they did a couple of years ago. So, retailers haven’t always been able to pass those higher costs on to consumers.”
Burt adds our debt levels also play into this because while interest rates are low now, they could go up.
“Of course, consumers are aware of that — that the good times basically are likely going to come to an end, at some point. So, they’re starting to be a little more cautious about taking on more debt.”
