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 and unrelenting negative media, retailers began bracing themselves for a downturn in total spending as the year drew to a close.

Released today, BC retail sales were down 7.2% in November 2008 compared to November 2007 (Statscan unadjusted numbers.) “A decline in retail sales for the month of November is an indication that BC is not immune to the concerns over the state of the wider market” says Mark Startup, President & CEO of Retail BC.

Startup continues “many of the larger retail companies who are currently struggling are US based chains. I speak with many of BC’s retailers on a daily basis who have enjoyed strong retail sales and even record sales numbers.” Noting that the independent business owner is concentrating on service, niche markets, unique product mix and a host of other creative business practices to ensure their success.

According to a Retail BC survey responded to by BC retailers, despite the spending slowdown BC’s retailers appear to be optimistic that their sales will increase in 2009.

Looking forward to 2009, 60% of retailers expect to generate the same or higher retail sales as 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.

 

Retail BC is the voice of over 3,000 retail companies within British Columbia. BC’s retail industry generates over $56 billion in sales and employs over 280,000 British Columbians.