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A Changing Planet: Corporate Social Responsibility
The story of the year — and if we don't take action, the story of the millennium — is the environment. From headlines and stories about climate change, water and air pollution, toxic waste, and limited progress on reducing, reusing and recycling, it's hard to imagine that many businesses are still not incorporating vigorous internal and external policies and practices to contribute to a greener planet. Retail sits on the frontier of change. We are the second-largest employer in Canada, one of the biggest contributors to Canada's economy, and the public face of commercial enterprise. As retailers, we need to take the lead and change how we operate. We need to change because customers expect it and because we're such an influential force in Canada. When retail evolves, consumers and other businesses evolve, too. Sound environmental policies and practices are part and parcel of our Corporate Social Responsibility, and your association will continue to provide assistance, guidance and tools to advance the industry's role and influence in this area. For over a decade, environmental stewardship issues have been a top priority for RCC and its members. With the assistance of a well-informed and knowledgeable Environment Committee and RCC staff, the association will continue to work with governments and other key stakeholders on waste diversion initiatives. It will also dedicate time and resources to promote the positive steps retailers are taking to improve our environment and our communities. In addition to environmental affairs, RCC, on behalf of its members, has been very active this year in such areas as loss prevention, labour supply issues, benchmarks for independent members, supply chain issues, among others. RCC is blessed with a talented group of volunteers from retailers of all sizes who make our association's voice strong in Ottawa and the provincial and territorial capitals. You make RCC the dynamic association it is today. Let's continue to work together to put retail first in the minds of decision makers, job seekers and consumers, and let's make this industry one that all other sectors will want to emulate to improve our environment and to better the lives of Canadians from coast to coast to coast.
Sincerely, |
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Retail Outlook 2007
The Canadian economy remains healthy, but the regional divergence between the booming West and the more sluggish East will continue to be the dominant economic trend in Canada in 2007. Consumers continue to be generally optimistic about their future financial circumstances. The Ontario index of consumer confidence is still above this time last year, while the British Columbia index increased by 8.6 points after consecutive declines in December and January. Canadian retail sales surged much higher than expected in December 2006, achieving the highest monthly sales gain in nine years, with increases in all retail sectors. In 2006, retailers sold $391.4 billion worth of goods and services, up 6.4% from 2005 and the highest rate in nine years. Double-digit growth rates were reported in 4 of 18 trade groups in 2006. Used and recreational motor vehicle and parts dealers led in 2006, with sales rising 15.9% due to strong sales of recreational vehicles, representing the group's strongest growth rate since the series began in 1991. The second-fastest growing trade group of 2006 was home furnishing stores with a growth rate of 13.3%. Home centres and hardware stores came third, with 12.3% growth. Pharmacies and personal care stores sales grew 10.9%, the fastest growth rate since the series began. Sales at clothing stores reached $17.3 billion, up 7.3%, the largest gain since 1994. Overall, growth in consumer spending is expected to be more modest going forward, as an increasing share of income will be devoted to pay off debt. Most retailers are expecting 2007 to be a fairly good year, provided that consumer confidence stays strong, interest rates remain stable and commodities, such as oil, gas and metals, maintain their current levels. |
Retail Sales by Provinces and Territories
Retail Sales by Sector
Source: Retail Fast Facts, Retail Council of Canada, March 2007, based on Statistics Canada data.
($millions)
2005
2006
Canada
367,829
391,389
Newfoundland and Labrador
5,884
6,059
Prince Edward Island
1,426
1,481
Nova Scotia
10,596
11,270
New Brunswick
8,391
8,888
Québec
83,074
87,118
Ontario
135,164
140,749
Manitoba
12,441
13,177
Saskatchewan
11,033
11,693
Alberta
48,633
56,497
British Columbia
49,915
53,136
Yukon Territory
443
456
Northwest Territories
579
605
Nunavut
250
260
Source: Retail Fast Facts, Retail Council of Canada, February and March 2007, based on Statistics Canada data.
(Preliminary, Using NAICS) ($millions)
2006
Jan. 2006/Jan. 2007
% Change
Total All Stores
391,389
6.4%
Total Home Furnishings & Electronics
38,611
7.3%
Total Building Supplies & Garden
25,115
12.2%
Pharmacies & Personal Care Stores
26,559
13.2%
Total Apparel
22,661
12.2%
Total General Merchandise
46,729
6.6%
Total Sporting, Leisure & Miscellaneous
20,039
3.4%
Beer, Wine & Liquor Stores
15,234
9.0%
Total Food & Convenience Stores
72,677
3.4%
Total Automotive & Gasoline
137,606
5.1%