Following on the heels of strong growth in retail sales in the first and second quarters of 2008, BC retailers found themselves responding to the fallout from a material deterioration in global financial markets in the fourth quarter. With a corresponding decrease in consumer confidence in the months leading up to the holiday shopping period and unrelenting negative media, retailers began bracing themselves for a downturn in total spending as the year drew to a close.

According to a survey responded to by 145 BC retailers, there were fewer retailers reporting sales increases in 2008 compared to 2007, particularly during the holiday shopping season. BC retailers appear to be optimistic that their sales will increase in 2009.

According to the survey, compared to 2007:

• 56% reported the same or increased sales in 2008. 44% experienced a decrease in sales.
• 37% reported the same or increased sales during the 2008 holiday shopping period. 58% reported a decline in sales.

Retailers attributed sales reductions to the slowdown of the global economy, lack of consumer confidence propelled by negative media coverage, and a significant number of retailers indicated the poor weather severely impacted ten very important pre-Christmas shopping days.

The 21% of retailers who experienced sales growth this holiday shopping season attribute their growth to better retail training, smart buying decisions, clarity of their brand, as well as offering excellent customer service. The average increase of these retailers is 12%.

Looking forward to 2009, 60% of retailers expect to generate the same or higher retail sales for 2008 by concentrating on internal business practices that they have the ability to influence (i.e. buying, service, location). The outlook for their own businesses is optimistic, considering 54% of respondents indicated that they anticipate BC’s overall economic health to decline in 2009.