Business
Why Canada’s Christmas presents may not be delivered on time this year
It’s one of the biggest shopping weekends of the year, but for many Canadians, this year’s Black Friday deals may not arrive before Christmas – and that could be a death knell for already hard-hit small businesses.
Two weeks into a national postal service strike at Canada Post, and many businesses say they’ve suffered steep financial losses as customers have had to wait for their orders. Inventory sits in warehouses across the country and shipping costs have increased.
Lorne James, who owns Otter Valley Railway, a model train company in London, Ontario, estimates he’s lost C$120,000 ($85,600; £67,200) in sales since the strike began.
“It’s going to wipe out a good number of businesses,” he told the BBC. He estimated that about 80% of his orders are received online, and up until two weeks ago, 99% of his deliveries were done with Canada Post.
Negotiations between the company and the Canadian Union of Postal Workers (CUPOW) have broken down, amid massive financial losses, especially over the issue of allowing temporary workers to help expand the company’s delivery to seven-days-a-week.
Bruce Winder, a Canadian retail analyst, said that while the growth of online shopping has led to new courier companies entering the market, Canada Post is often the most affordable, and has the network to deliver in rural areas many other companies won’t.
The strike could not come at a worse time, Mr Winder said. For companies that sell things that can be gifted, Christmas sales can account for 30-40% of their annual revenue, he told the BBC.
He also predicts that this year, Canadians were already planning on spending less, because of the rise in the cost-of-living.
“It’s a double whammy, you know, because they’ve got the Canada Post strike and they’ve got sort of negative consumer sentiment,” he said.
Mr James said he’s doing better than most, because he negotiated contracts with other delivery services prior to the strike – but shipping overseas with a different carrier was too expensive, which has him losing out on some orders this holiday season.
In an open letter, Canadian company Shopify, which helps businesses set up online stores, urged the government to intervene to “prevent a devastating blow to Canadian small businesses at their most critical time of year”.
The letter came after the federally appointed mediator suspended talks on Wednesday.
“His assessment is that parties remain too far apart on critical issues for mediation to be successful at this time,” said Labour Minister Steven MacKinnon on X.
The union says it is bargaining for inflationary pay rises, better benefits, and for the company to agree to not hire outside-contractors. Meanwhile, Canada Post says it needs to have more flexible work hours – and hire more temporary workers – in order to move to seven-day delivery and be more competitive.
After a catastrophic fire five years ago, the Notre Dame Cathedral de Paris reopened this month looking almost the same as it did when it was first constructed in 1163.
The massive reconstruction project was a testament not just to the hard work of the French people – but also to the lasers, drones and other advanced technology that gave rebuilders a window into the building’s past.
“The time frame wouldn’t have been possible without the record of what existed,” Amy Bunszel, executive vice president of architecture, engineering and construction at 3D-software company Autodesk, told CNN. Her company was a major part of creating a model of the building as it existed before the fire, giving the reconstruction effort a sort of guide for what to do. “It would’ve required a lot more guesswork. Imagine taking millions of tourist photographs (as a reference point) versus having one consolidated perfect representation.”
Back in 2022, when the labor market was so hot that Beyoncé even released a song about it, Americans were job hopping in large numbers, boosting their salary in the process.
The Great Resignation was in full swing.
That fueled fears of a “wage-price spiral” — where wages and prices perpetually rise and feed off each other.
But what appeared to be a hot job market was actually a symptom — not the cause — of the recent bout of inflation, according to new research that explored the consequences of unexpected rising prices on the labor market.
The Container Store has filed for bankruptcy. It is the latest well-known retailer to fall victim to customers cutting back on discretionary spending.
The 46-year-old company said in a statement late Sunday that filing for Chapter 11 bankruptcy protection will help it “bolster its financial position, fuel growth initiatives, and drive enhanced long-term profitability.” The Container Store revealed in court documents that it has about $230 million in debt and just $11.8 million in cash on hand, but will receive $40 million in fresh financing.
The chain’s 102 locations and website will remain open for orders during the process, which is expected to take 35 days to complete.
“The Container Store is here to stay,” said CEO Satish Malhotra in a statement. “Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities.”
Payments to vendors and suppliers will be made as normal and all customer deposits and orders will be honored and delivered, the company said. The Container Store plans to emerge as a private company when the Chapter 11 process is complete.
The company’s Sweden-based Elfa brand, described as a “premium customizable storage system,” isn’t included in the bankruptcy.
The filing comes a few weeks after a deal with Beyond, the parent company of Bed Bath & Beyond and Overstock.com. The Container Store was expected bring Bed Bath & Beyond-branded products to some stores, but that deal appears to be in jeopardy. Beyond previously said that the financing deal was in doubt because the Container Store was struggling to reach an agreement with its lenders.
The Container Store’s stock has already been delisted by the New York Stock Exchange because it failed to meet the exchange’s financial standards.
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