A few weeks ago, we took a look at the December retail sales figures and we are now happy to report that, since that time, things have definitely started looking up.
According to the Financial Post, “Statistics Canada says retail sales climbed 2.2 per cent to $46.0 billion in January after declining in December. Economists had expected a gain of 1.1 per cent, according to Thomson Reuters.” That is a significant difference.
Retail sales in January were up in almost all subsectors (10 of 11). Excluding sales at motor vehicle and parts dealers, overall retail sales in Canada rose 1.7% in January.
As you can see, January’s numbers not only beat expectations, they’ve climbed to levels we haven’t experienced since February 2015.
Read more on these soaring retail sales here: http://business.financialpost.com/news/economy/its-a-bird-its-a-plane-no-its-canadas-retail-sales-soaring-past-expectations.
Perhaps part of the climb has come as a result of fewer Canadians crossing the border to find great deals. With the Canadian dollar still so low, those deals, for the most part, just aren’t deals for the average Canadian shopper – and U.S retailers are feeling the pinch.
As CBC News reported back in March, retailers in those high-traffic cross-border areas are trying to come up with innovative new ways to draw in the customer, offering free gifts or on-par deals. It is unclear yet whether these strategies will work.
The decline in Canadians heading across the border to shop is significant. According to Stats Canada, the number of Canadian vehicles making same-day trips has dropped by 15% compared to the same time last year. Overnight trips – those that usually equal bigger pay-offs for retailers – are also down by 13%.
You can check out the CBC News article here: http://www.cbc.ca/news/business/cross-border-shopping-deals-1.3589499.
Of course, this is good news for Canadian retailers. Fewer Canadians shopping in the U.S. means more traffic at home. Make sure you’re taking advantage. A solid retail merchandising strategy, coupled with great customer service, is a great way to bring those shoppers to you!
At Storesupport, we can help you get your piece of the pie. Contact us today by calling 1-877-421-5081 or visiting www.storesupport.ca.