Welcome to RCC

National Overview:
The retail industry is one of the most competitive and vibrant sectors of the economy, representing 5.6 per cent of the national GDP. Nationally, it generated more than $346 billion in 2004 annual retail store sales, an increase of 5.0 per cent over the previous year.

Retailers offer consumers an enormous range of products from around the world, sold through many types of retail formats. In supplying the products Canadians need and want, retailers establish and maintain close links with their communities. They have a unique insight into Canadians' mindsets through their shopping patterns and thus insight into the economic health of our country.

Ontario Retail Industry Overview:
The retail sector is a vital part of Ontario's economy. In 2004, it achieved almost $129 billion in annual sales and represented more than five per cent of the provincial GDP.

While many high-profile retailers are big businesses, retail is essentially a small business sector. Close to 25 per cent employ only one to four people and a further 46 per cent are classified as indeterminate businesses, that is, businesses such as sole proprietorships and partnerships, (ie. usually without a payroll). Please note RCC has included the figures for indeterminate businesses because they are representative of a number of businesses in the retail trade. (See Graph 1)

Graph 1: Retail Businesses in Ontario by Employee Size, 2004

Although the figures in Graph 2 are approximately 4 years old, RCC believes the pattern holds true today. A majority of retail businesses in Ontario employ fewer than four people and have sales of less than $500,000 annually.

Graph 2: Ontario Retail Establishments by Revenue, 2000*

There is a strong correlation in the retail trade between employee size and revenue. As sales and revenue increase, the number of employees is also highly likely to rise. (See Graphs 1 and 2)

There are more than 227,000 retail establishments in Canada. More than 85,600 (38 per cent) of these retail establishments are in Ontario. (See Table 1)

The retail sector reaches every corner of the province. When considering businesses with a payroll and a fixed address (the key criteria Statistics Canada uses to classify a business establishment), the retail industry has the largest number of business establishments in Ontario. (See Column #4 in Table 1)

When including indeterminate businesses such as sole proprietorships and partnerships, retail is still Ontario's third largest industry. (See Column #2 in Table 1)

Table 1: Retail Establishments in Ontario, 2004

More than 40 per cent of Ontario's retail establishments are located in Toronto. See Table 2 below:

Table 2: Number of Retail Establishments for selected Ontario Census Metropolitan Areas (CMA's) by Employee Size, 2004

Retail employment represents 11.22 per cent of the province's total labour force, directly employing over 760,000 Ontarians. (See Table 3) In fact, retail is Ontario's second largest employer, with a labour force larger than most every other industry, including health care and social assistance; professional, scientific and technical services; finance, insurance, real estate and leasing; construction; accommodation and food services; and educational services, just to name a few.

Table 3: Ontario Labour Force by Sector, 2004

Retailers employ thousands of Ontarians in each region of the province:

Table 4: Ontario Employment by Economic Region, 2004

Source: Statistics Canada, Labour Statistics Division, December 2004.

The contributions made by this economic sector are felt in every corner of the province and affect the lives of all residents.