Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Canadian Retail: Summer has Come and so Have the SalesMonday, August 24, 2015 > 12:43:24
Despite talks of a recession, consumer confidence rose to 103 points from 100 points in May and retail sales remain on a steady upward path. All Stores sales increased 3.7% and All Stores Less Automotive, Food, and Pharmacies was up 4.2%. With positive performance in nearly all retail sectors, the first half of the year has remained strong despite the negative chatter heard all around.
Excluding Gasoline Stations (-11.7%), all categories exceeded their performance of last June. Particularly impressive categories included, Building Material and Gardening Equipment (8.5%), Health and Personal Care Stores (7.2%), and Jewellery, Luggage and Leather Goods Stores (7.1%). Even Electronics and Appliance Stores experienced an increase in sales of 8.1%, which is well above its year-to-date average of 1.9%.
The positive results this month can be attributed to the weakened Canadian dollar, which not only brought more tourists into the country, but also recaptured Canadian consumers’ spend, which had been leaking outwards. Canadian cross-border malls have benefited the most through strong sales increases. Healthy results were also reported by several retailers. Canadian Tire sales were up 6.4% for its second quarter (largely due to its sporting goods store), Lululemon sales were up 10% for its first quarter, and Dollarama sales were up 13% for its first quarter. Indigo announced a 2.3% increase in sales for its first quarter, with its website earning an 18.2% increase in comparable sales. One of the key reasons Canadians shop abroad is for cheaper prices and varied selection. With the astonishingly weak loonie, it’s no surprise even online cross-border shopping habits have shifted. The J.C. Williams Group Canadian E-tail Report tracks the consumer habits of online Canadian shoppers.
While sales by category soared, regional sales varied substantially. In British Columbia, sales grew 7.5% with 11.2% growth in Vancouver. This can be attributed to Vancouver’s above-average temperatures and close proximity to the American border. Ontario experienced a modest increase of 4.3%. Meanwhile, Québec sales stagnated (0.3%), sales in the Prairies fell (-1.7%), and Alberta sales fell even more (-2.6%).
Looking forward, consumer confidence in July fell -4.1 points to 98.6. Despite this, will the positive sales growth trend continue in the second half of the year Join us next month to find out.
For more visit: http://www.jcwg.com/pages/national-retail-bulletin/?id=ma1011-1