Retail Sales – Canada – May 2016

By: Paul Young, CPA, CGAJuly 22, 2016

Disclaimer• This presentation is on view of Retail Sales in Canada

Paul Young - Presenter

Bio• CPA/CGA• 25 years of experience in Academia, Industry and Financial solutions• Youtube Channel -

https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

Agenda• Summary• Key Segments• Retail sales by province• Consumer Price Index (CPI) – Inflation• Retail Pricing • On-line Retailing• Key Comments

• Overall• Retail sales rose 0.2% to $44.3 billion in May. Higher sales at food and beverage stores and gasoline stations more than offset lower

sales at motor vehicle and parts dealers.• Sales were up in 6 of 11 subsectors, representing 51% of retail trade.• After removing the effects of price changes, retail sales in volume terms edged up 0.1% in May.

Store Sales• Receipts at food and beverage stores were up 2.1%, the fourth increase in five months. Following declines in March and April, sales

at beer, wine and liquor stores advanced 6.0% in May. Supermarkets and other grocery stores posted a 1.6% increase. Sales were down at specialty food stores (-1.0%) for the third consecutive month. Sales at convenience stores (-0.8%) decreased for the first time in four months. Following a 6.4% advance in April, sales at gasoline stations rose 2.3% in May, in part due to higher gasoline prices.

• Clothing and clothing accessories stores reported a 2.8% increase in May, more than offsetting the decline in April. Higher sales were posted at clothing stores (+3.1%) and shoe stores (+3.2%), while sales at jewellery, luggage and leather goods stores edged down 0.1%.

• Sales were down for all store types in the motor vehicle and parts dealers subsector (-2.0%) in May. The decline in May was largely due to weaker sales at new car dealers (-2.4%).

• Following a 5.9% gain in April, sales at furniture and home furnishings stores declined 3.5% in May, as furniture stores (-5.0%) and home furnishings stores (-0.7%) posted lower sales.

• General merchandise stores (-0.5%) posted lower sales for the first time in five months.Provinces

• Quebec (+1.0%) reported the largest increase in dollar terms, led by stronger sales at food and beverage stores.• Sales rose for the first time in four months in Manitoba (+0.5%), as higher sales were reported at supermarkets and other grocery

stores.• Newfoundland and Labrador (+1.0%) reported the fourth sales gain in five months.• Sales in British Columbia edged up 0.1% on the strength of higher sales at gasoline stations and beer, wine and liquor stores.• Following increases in April, sales in Alberta were down 0.4%. The decrease was mainly attributable to lower sales at new car

dealers, the main retail store type in Alberta affected by the Fort McMurray wildfire and evacuation.• New Brunswick reported a 1.2% decline in retail sales, largely stemming from lower sales at new car dealers.

Key Segments

Large Retailers

Provinces

CPI – Canada

Retail Pricing / Canada

Online – Retailing Canada

• One option under consideration is allocating commissions from online sales to stores near the shopper's home. The Retail Council of Canada said designing a good compensation strategy is challenging. It's especially difficult figuring out how to divide store rewards among individual sales associates, noted senior vice-president Michael LeBlanc. Source: http://www.cbc.ca/news/canada/montreal/online-sales-canada-employee-commission-review-2016-1.3682985

Key Comments / retail sales• Overall, sales rose in six of 11 subsectors, representing 51 percent of the total. Food

and beverage stores posted a 2.1 percent increase, and gas stations, a 2.3 percent gain. Sales at car and parts dealers, the largest of the subsectors, slipped by 2.0 percent, falling for the third consecutive month. Sales dropped by 0.4 percent in Alberta on declines at new car dealers, the main retail store type affected by a major wildfire that forced the evacuation of Fort McMurray. Source: http://ca.reuters.com/article/businessNews/idCAKCN1021HD• Retail sales rose 0.2% to $44.3 billion in May. Higher sales at food and beverage

stores and gasoline stations more than offset lower sales at motor vehicle and parts dealers. Sales were up in 6 of 11 subsectors, representing 51% of retail trade. After removing the effects of price changes, retail sales in volume terms edged up 0.1% in May. Source: http://www.marketpulse.com/20160722/canada-retail-trade-may-2016/