Key Takeaways
- Some small businesses in Ottawa are seeing an increase in customers deliberately spending their money closer to home this holiday season
- The trend is attributed to U.S. tariff threats earlier in the year, which led to a surge in patriotic shopping impulses
- Consumers are prioritizing proximity and looking for Canadian goods, with 86% planning to shop close to home and 84% seeking Canadian products
- Price remains a significant factor in purchasing decisions, with consumers seeking to balance their desire to support local businesses with their budget constraints
- Small business owners hope that the "buy Canadian" and "buy local" trends will continue beyond the holiday season
Introduction to the Trend
The holiday season is in full swing, and some small businesses in Ottawa are noticing a significant trend. Despite the initial surge in patriotic shopping impulses earlier in the year, customers are still deliberately spending their money closer to home. This shift is attributed to the U.S. tariff threats that rattled Canadians earlier in the year. At Maker House, a Hintonburg shop that sells only Canadian-made goods, founder Gareth Davies noticed an immediate increase in sales. "From February onward, we got a huge uptick due to the vitriol from our neighbours to the south," Davies said, adding that it was nearly double what he saw the previous year.
The Impact on Local Businesses
The trend has had a significant impact on local businesses, with many seeing an increase in sales. At Maker House, sales hit 120 per cent year-over-year in March, a significant boost during what Davies said is normally his slow season. While the initial surge has cooled, Davies said sales remain well above last year’s levels heading into the days before Christmas. "We might be up like 30 or 40 per cent on the previous December," he said. Similar patterns are showing up at SFR Distillery in Ottawa, where salesperson Rachel Speakman says customers are increasingly asking about the origins of what they’re buying. "People are very excited to hear that it’s 100-per-cent Canadian product," said Speakman, who works in the distillery’s stall at the Ottawa Christmas Market.
The Driving Factors
So, what’s driving this trend? According to Speakman, the biggest driver for their customers is the local aspect. "It’s not just our distillery, but it’s the people who are providing us with the corn, with the barley, with all of our products that go into our bottles," she said. "You’re not just supporting local, you’re supporting Canada." This sentiment is echoed by Davies, who hopes that both the "buy Canadian" and "buy local" trends will persevere. "Keep on thinking about how your money holds power and how you can make a difference, even as one person, through your spending habits," he said. However, Santo Ligotti, vice-president of marketing at the Retail Council of Canada, notes that patriotic shopping impulses have "definitely softened a bit" since the beginning of the year.
The Role of Price
While the desire to support local businesses is strong, price remains a significant factor in purchasing decisions. According to Ligotti, consumers are prioritizing proximity, but they’re also looking for value. "Canadians told us it’s more about shopping locally," Ligotti said. The council’s internal polling showed that 86 per cent of consumers plan to shop close to home over the holidays, while 84 per cent said they’d be looking for Canadian goods. However, Ligotti notes that people who were more likely to buy Canadian earlier because they wanted to jump on the patriotic bandwagon might be more conscious of their spending during the holidays. "They’re going to look and say, ‘Well that’s great, I do want to do that. But I need to also make sure that I’m keeping to my budget,’" he said.
Conclusion
In conclusion, the trend of customers deliberately spending their money closer to home this holiday season is a significant one. While the initial surge in patriotic shopping impulses may have cooled, the desire to support local businesses and Canadian products remains strong. As consumers prioritize proximity and look for value, small business owners like Davies and Speakman hope that the "buy Canadian" and "buy local" trends will continue beyond the holiday season. By supporting local businesses, consumers can make a difference and contribute to the growth and development of their communities. As Davies said, "Keep on thinking about how your money holds power and how you can make a difference, even as one person, through your spending habits."