Why do big retailers keep failing in Canada? The cost of doing business in Canada is VERY expensive, and Canadian Consumers Are Bargain Hunters – March 29, 2023,
The cost of living in most parts of Canada has been extremely high for a long time, and in order for the MIDDLE-CLASS Canadian consumer to survive, they have to learn how to shop smart. In America, it’s COMMON for most Republicans(Conservatives) and some Democrats(Liberals) to make speeches about CUTTING COSTS.
In the U.S., TYPICALLY, if you don’t deliver on your promises as a politician, you’re out of a job; furthermore, in the U.S., States’ Rights yield more power than Provincial jurisdiction does in Canada. Both socially and economically, Joe Biden is possibly the worst President in U.S. history; BUT… States in America do not have to worry about BLATANT TRANSFER payments.
In Canada, municipalities and Provinces are REWARDED for bad economic behavior, and therefore in many Provinces in the Federation of Canada, bloated Government on every level is REWARDED. These bloated government costs inevitably get passed onto Canadian businesses, who then, in turn, ATTEMPT to pass these costs onto Canadian consumers.
Canada’s TRANSFER payments system works primarily because Canada struck ENERGY gold, which, oddly enough, the Progressive, Leftist-Socialist, Liberals have recently declared war on, a kind of a LATE STAGE CAPITALISM if you ask me. When times are good and progressive ideals on the surface appear to be working, why not take things further, right?
In regards to retail in Canada, large retailers are often misguided about Canadian consumers because what typically happens is that bean counters are hired, and these bean counters merely look at the OVERALL numbers and make false assumptions about Canadian consumers. Walmart, an American company, in my opinion, figured out the Canadian consumer by being selective as to what prices it marks down and what prices it marks up.
Walmart often pushes its own brand at a lower cost while being selective as to when it puts brand-named products on sale, it’s difficult for the average Canadian consumer to simply pick up only what they came to buy, and this often equates to Walmart having a constant stream of cashflow walking through its doors.
Most of the retailers that fail in Canada raise prices UNIFORMLY, almost as if they’re punishing Canadians for voting so Liberal, but history shows that most voters, Conservative and Liberal, are CHEAPSKATES. Politics and prices are never an accurate description of human behavior; you have to literally be able to comprehend the people you’re dealing with to stay afloat.
What does seem to work in Canada when retailers pick out a NICHE customer, whenever I visit nations that are left-leaning, Karl Marx comes to mind. With Marxism, he separated people by class; most socialists say one thing but behave differently; most socialists don’t want to PHYSICALLY help the poor, nor do they want to pay OUT OF POCKET to help the poor, but they agree amongst themselves that poor should not be ignored.
The solution for Leftists is to raise taxes and hand power over to the government to solve these pesky poverty problems for them and be sure to pay those government people well, and while you’re at it, keep prices low. Why should retailers care about the political landscape? Because then you’ll better understand the B.S. game your customers playing.
If consumers associate a company with poverty or the middle class, said customer will not want to pay a price it believes is undeserving; on the flip side, Canadian consumers who want to associate themselves with prestige will gladly pay an above-market price to a company it believes is of high quality.
In America, consumers tend to have more disposable income than do Canadians because the cost of living is usually lower, and as I said previously, transfer payments aren’t a thing in the U.S.; therefore, bad economic ideas tend to remain segregated to certain parts of America, making it EASIER for retailers to spot where NOT to go.
In Canada, what appears to be an upscale neighborhood, might, in actuality, be a neighborhood in which the majority of residents are not only deeply in debt but may also be in dire straights. Canadians know where their priorities lie. Because the cost of doing business in Canada is very high and the consumers can be sketchy, retailers that haven’t done their homework on the Canadian consumer can quickly find their business bankrupt.
Interesting times ahead