Figure 3 Retail Commodity Sales 2004

Originally, retail businesses reflected a specialization on particular markets or products. For example some years ago, it was generally accepted that food stores didn't compete with auto parts stores or general merchandise stores. However, now, some grocery stores sell simple auto parts and the latter sell home cleaning supplies. The next figure (Figure 4) shows the retail commodities with the market share of the most significant sub-sector.

Only the automotive and food sectors are able to occupy more than 80% of the market for their major commodity specializations. A table (Table 4) showing both the major and second tier sectors in the statistical appendix shows that general merchandising is the major second sector in many commodity categories. At one point, department stores, a component of General Merchandise Stores, were the expected source for most purchases of housewares. In 2004, the General Merchandise sector, which includes department stores and warehouse club chains, distributed only 42% of housewares. Even the Pharmacy and Personal Care sector is able to capture only 66% of the market for its dominant products.

Although the retail sector has many businesses with many locations, large chain retails dominate many segments. Every month, Statistics Canada surveys a panel of 80 large retailer businesses that account for about 35% of non-automotive retail sales. The next figure (Figure 5) summarizes the market presence of these retailers in the sales of specific commodity groupings.

Market Share of Large Retailers — 2004

Selected Commodities ($BN) Large Retailers Total Market LR Share Total commodities 93,298 347,704 26.8% Food 27,931 56,652 49.3% Non-alcoholic beverages 1,899 4,488 42.3% Alcoholic beverages 559 15,729 3.6% Drugs (prescription and over-the-counter), vitamins and other health supplements 4,653 18,848 24.7% Women's clothing and accessories 7,535 12,371 60.9% Men's clothing and accessories 4,061 6,574 61.8% Footwear 1,623 4,090 39.7% Indoor furniture 2,659 7,005 38.0% Household appliances 2,707 4,812 56.3% Home electronics, computers and cameras 5,737 8,389 68.4% Home furnishings 2,899 11,399 25.4% Housewares 4,152 7,287 57.0% Hardware and home renovation products 1,842 18,370 10.0% Lawn and garden products, equipment and plants 1,950 4,819 40.5% Sporting goods 1,646 3,845 42.8% Toys, games and hobby supplies 1,455 2,643 55.0% Pre-recorded CDs, DVDs, and video and audio tapes 1,124 1,941 57.9% Books, newspapers and other periodicals 437 2,740 15.9% Automotive fuels, oils and additives 2,411 29,016 8.3% Tobacco products and supplies 2,501 8,844 28.3% Residual Commodities 13,518 117,843 11.5%

Source: CANSIM, Special Tabulations

This panel of large retailers has been defined by their relative dominance in market segments. In many of the commodity segments, these retail businesses occupy over 50% of the total market. In other words, most of the other retail businesses are smaller players with probably a more narrow market defined either spatially or in very specific commodity terms or both. This definition of large retailers, essentially large chains, does not include significant banner or franchise groups such as some automotive parts and grocery brands.