Inflation and high interest rates drive cautious spending, but a potential rebound is anticipated
by Freschia Gonzales
Wealth Professional
Canadian Tire Corp., Tim Hortons parent company Restaurant Brands International, Roots Corp., and Alimentation Couche-Tard Inc. have all observed that shoppers are increasingly seeking cost savings and reconsidering some purchases.
According to BNN Bloomberg, this trend was noted across the latest set of quarterly earnings calls, with many companies attributing it to a mix of inflation and higher interest and mortgage rates that strained budgets last year and have continued to slow consumer spending into this year.
However, there is consensus that the latter half of 2024 might see these concerns ease, especially if the Bank of Canada cuts its key lending rate over the summer.