Almost a week into the GST holiday, retailers and restaurant owners appear on track for a sales boost despite some of the struggles they faced implementing the temporary break. BMV Books owner Patrick Hempelmann says he's seen an uptick in sales since the tax break began, particularly on higher-priced items. "The first two days, I think we were definitely busier than we otherwise would have been," he said.
For two months, a slew of items including children's toys, snacks, wine and restaurant food are GST- or HST-free, depending on the province. The vice-president of federal government relations for the Retail Council of Canada, Matt Poirier, says Boxing Day in particular is expected to get a boost. However, he says businesses, including ones with older payment systems, have faced hurdles trying to implement the tax break on short notice and even figuring out which items qualify.
The complications -- and the boost in customers -- depend on the store, he said. For example, toy stores reported large declines in sales ahead of the tax break kicking in, said Poirier, as customers waited a few extra days to buy Christmas gifts. "For a lot of retailers, it's shifting the buying patterns, but I think overall they're seeing a net increase," he said.
A report Thursday from RBC Economics showed retail spending slowed in November, with holiday spending slightly below 2023 levels over the Black Friday weekend. Spending on hobbies, toys and games scaled back notably after Nov. 21, wrote RB.
