Initial reports say Christmas sales were strong in British Columbia, but not as strong as last year, as the industry prepares for a “softening” of the retail environment. (Black Press File).

Retailers in B.C. preparing for slower growth, higher costs in 2019

British Columbia, once a region of strength, has gone soft for retailers

Christmas sales were strong, but not as strong as last year, says a leading retail analyst, who predicts a “softening” for the retail industry in 2019.

Greg Wilson, director of government relations in British Columbia for the Retail Council of Canada, made these observations as the industry prepares for a slow-down after five strong years of growth.

More information will become available in two months when Statistics Canada releases retail figures for December. The most available retail figures for October show sluggish retail sales.

RELATED: Canadians spent $1.7 billion dollars online in December 2016

Whereas British Columbia was once a strong market for retailers, it is among the weakest in the country, he said, pointing to the Retail Council of Canada’s Holiday Retail Conditions Report that the organization compiles through interviews with members.

“The slow-down in British Columbia has become more widespread, with the majority of members saying it is now one of their weaker regions,” it reads. “The softness occurs in all parts of the province.”

There are several reasons, according to Wilson. First, the slow down in real estate has impacted retail. Second, retailers, especially in parts of Greater Vancouver are struggling to retain staff, because of low wages relative to local housing costs, a phenomenon also apparent in other parts of the province such as Whistler.

Retailers in the Greater Victoria have also complained about the absence of staff, citing housing and transportation costs as factors.

READ ALSO: First stores open in Victoria’s expanded Mayfair shopping centre

Other issues also loom, said Wilson, including the Employers Health Tax (EHT) effective Jan. 1 and a higher minimum wage effective June 1.

While the retail council welcomes some of these measures, they are opposed to others, said Wilson.

He is concerned about the EHT, which replaces the Medical Service Premiums (MSP), with the proviso that the provincial government collects both in 2019.

This double-dipping punishes what Wilson called “progressive” retailers, who already pay their employees’ MSP.

Issues beyond the borders of the British Columbia may also keep up retailers at night.

“Like their customers, retailers are very aware it is an uncertain world,” reads the council’s internal assessment. “The items in the big picture – trade disagreements, a slower economy, geopolitical tension, the exchange rate, technological change, cost and competitive pressures – intrude when retail execs are trying to get to sleep.”

The council’s internal reporting says most retailers are planning for “very modest increases in sales, characterized by flat store sales and strong online increases” with overall sales growth in the two per cent range.

The retail environment is “softening,” said Wilson. But he notes this development is relative, he said.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Community pride always showed in Mansueti’s work

Retirement reflections revolve around so many projects and successes

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Cowichan RCMP warn of scammers pretending to be police

Callers identify themselves as police officers

Direct mail delivery to Penelakut Island a big benefit for residents

Service that started in mid-March has especially been appreciated since pandemic restrictions

Archie’s lets the good times roll

Blast from the past at new diner in the Chemainus Public Market

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Victoria police investigating possible hate crime on BC Transit bus

A young Black man was randomly struck by a Caucasian man who he did not know

UPDATE: No COVID-19 at Nanaimo shopping centre as memo mixed up mall identities

Woodgrove Centre sent memo to tenants Tuesday advising them of positive case

Most Read