chapter 2

Canadian retailers forecast to ring up about $58 billion in sales over holidays

This article is about how the Canadian retailers will gain billions in sales over the Christmas holiday. The professional-services firm is predicting that holiday retail sales will increase by six to seven per cent over last year's $55 billion. In general retailer’s environment continues to accuse better in Canada than in the United States, which is anticipating a slower pace of holiday sales growth this year at 6.5 per cent.

http://money.canoe.ca/News/Economy/2006/11/05/2242441-cp.html

Factors Affecting Demand

During the Christmas holiday retail stores will have special sales to compete with other stores so consumers will buy them. The consumers will buy a greater quantity of a product if the price is low. Having a low price will let consumer buy more. Throughout the holiday other stores will have a product that are similar and that makes substitutes for products. The more money the consumer spend during Christmas and special holidays the bigger the demand they want in products.