Publications

Click here to download a PDF Version

Consumer confidence was on the rise for the third month in a row this year.  Up over six points from April, May’s consumer confidence climbed to 81.4.

While All Stores sales fell by -6.7% for the month of April, the positive trending in consumer confidence provides some light at the end of what has been a dark tunnel for retailers.  Even more encouraging is that All Stores Less Automotive sales were up 1.9%.

Sales of Food and Beverage Stores grew considerably by 8.7%, accounted for largely by rising food costs of 7.1% in the 12-month period to April.  Retailers like Loblaw Companies Ltd., also posted positive, first quarter, sales gains of 2.1% over last year.

General Merchandise Stores were up, by 4.3% for the month.  Despite indications of sustained growth in this sector, Walmart Canada continued to seek a larger piece of the pie, as it expands some of its eco-friendly private label products.

Pharmacies and Personal Care Stores sales grew by 1.7% in April.  Same-store sales growth for the first quarter for Shoppers Drug Mart, Inc. was 4%.

Sales growth for Sporting Goods, Hobby, Music and Books Stores was level at 0.2%.  The Forzani group also reported flat, same-store sales growth of -0.4% for the first quarter 2009.

Clothing and Accessories Stores were down -6.1% in April over the same month last year.  Clothing retailer, Reitman’s was down only -0.8% for the first quarter this year.  Cooler weather across Canada will have influenced consumer purchasing behaviour for spring products.

Building and Outdoor Home Supplies Stores saw a decline in April sales of -4.2%.  Computer, Software, Home Electronics, and Appliance Stores’ sales were down -7.2% for the month. Furniture and Home Furnishings Stores fell by a whopping -13.3%.  While the home retail sector has yet to improve, growth in pockets of the resale housing market may provide opportunities for the retailers that can capture it.

A regional outlook shows a common theme of greater declines in retail trade in British Columbia and Alberta compared to other parts of Canada.

Overall as April’s retail sales figures show, consumer wants have not vanished completely; they have been merely refined; the retailers who can match value to the ‘wants’ can hope to see more heartening results.

Look for our May bulletin to see whether retail sales growth finally catches up with the growth visible in consumer confidence.

Release Date of the Next National Retail Bulletin: July 22, 2009

Contact Us:

Toronto Office:  17 Dundonald St., 3rd Floor, Toronto, ON M4Y 1K3 Tel: (416) 921-4181 Fax: (416) 921-4184
Chicago Office: 350 West Hubbard St. Ste. 240, Chicago, Il. 60654 Tel: (312) 673-1254 Fax: (312) 822-9162
Montreal Office: 780 Main Road, Hudson, Quebec J0P 1H0. Tel: (450) 458-2870 Fax: (450) 458-2905
For more information, please contact John Archer or Maureen Atkinson (416)921-4181 or e-mail or info@jcwg.com; Website:  www.jcwg.com

Please note:

The J.C. Williams Group National Retail Bulletin compares the latest monthly release of “raw” (i.e., unadjusted for seasonality) retail sales figures to those in the same calendar month of the previous year. Statistics Canada also reports seasonally adjusted sales that are compared to the previous month within the current calendar year to measure change in Gross Domestic Product (GDP). Although other sources use seasonally adjusted figures, J.C. Williams Group believes that using raw figures and making comparisons to the previous year’s performance more accurately reflects the seasonality of the retail industry and, therefore, are more useful in analysis.