Retailers slash prices in holiday rush to attract reluctant shoppers

Canadians plan on spending $790 on holiday expenses this year, down $117 from 2007, according to a recent survey.(Canadian Press)

Retailers across Canada are rolling out last-minute bargains in a bid to attract cash-conscious consumers, though one retail analyst suggests the best sales may be still to come.

"The best deals will come as usual after the Christmas sales," said Toronto-based retail analyst John Winter. "January will be good time for buying big-ticket items."

But some retailers say they're already lowering their prices to Boxing Day rates now in a bid to attract consumers. John Giovanni of Edmonton's Giovanni Yamaha Music says he's already reduced the prices on pianos and other stock.

"I think that today, of course with the market being what it is, we wanted to make sure to be a little more aggressive," said Giovanni.

Myrlene Sundberg, co-owner of Urban Mode — a home and accessories store in Toronto, said sales have been up and down in the later part of the year.

"October was a little bit down, November was a little bit up, and December the jury's still out on it yet, so we'll see how it all ends up," she said.

High-end retailers cut prices'I'm spending less and trying to make some gifts with my kids.'— Krista Sabrowski, consumer

Some high-end retailers are discounting as well. Jeweller Birks & Mayors Inc. published an advertisement touting a buy one get 50 per cent off deal in Toronto while clothier Harry Rosen's campaign promises discounts of up to 50 per cent.

While some shoppers are cashing in on the bargains, others are determined to stay within a budget.

"We set limits this year for ourselves," said consumer Derek Zeller.

Similarly Krista Sabrowski said she also planned on scaling back her shopping.

"I'm spending less and trying to make some gifts with my kids," she said.

According to Scotiabank's 2008 Holiday Spending Study released Thursday, Canadians planned to spend $790 on holiday expenses — a decrease of $117 from 2007.

The survey included 1,029 interviews conducted between Dec. 4-6. The study is considered accurate to within plus or minus 3.1 percentage points, 19 times out of 20.