St. Catharines businesses facing tough holiday season amid rising costs, inflation

Small businesses in downtown St. Catharines are feeling the pressure this holiday season as costs rise and demand dwindles though some believe there is light at the end of the tunnel.

Inflation, rising costs of living and trade disputes are all factors that are shaping consumer behaviour.

Rhondi Bruce, co-owner, Pink Bubblegum, says consumers appear to be more budget-conscious this season.“People are really cautious about what they’re spending and our stuff’s not that expensive either,  it’s good quality — but yea, they’re just very careful,” Bruce said.

“It’s been a lot different i think not spending as freely, we’re not even giving as freely as we had been,” said one local shopper.

“I’m always, always, always looking for deals,” said another local shopper. “I’m trying to buy more local too.”

At a time when consumers are increasingly more mindful about where their money goes, businesses like The Boot Shop in downtown St. Catharines has prioritized maintaining close relationships with their customers.

“To me, I always say when I do training, I don’t want the customer to feel like you’re trying to sell them a shoe, I  want to welcome them into my home,” said Amy Morrison, manager, The Boot Shop.
That customer-centric business model is what has shoppers coming back to The Boot Shop.

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“For me, I want to know the people that I’m buying from and  it’s just really nice to come in somewhere and get such a warm welcome,” said Justine Rae,  store customer.

It’s also a smart move according to one marketing professional.

“Retention is every thing. especially nowadays small businesses are struggling from every aspect . Building loyalty locally is what I’ve seen has been the most engaging and successful for local businesses,” said Michael DeLong, owner, GetintheLoop Hamilton.

But it’s not just consumers feeling the pinch.

Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB) said small businesses are feeling it too.

“Small businesses are seeing the same kind of cost pressures that we as consumers are,” Kelly said. “They have seen huge cost increases in every line of their budget. There has been a small boost in small business confidence and that is a good thing for Canadians, for Canadian job seekers.”

Despite the pressure, some remain optimistic.

A report by the CFIB found the long-term confidence of small businesses continues to improve.

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