Consumer spending is key driver of the economy as such this presentation will provide insight to what is happening in the retail sector for Canada.

1. Retail Sales – Canada – June
2016
By: Paul Young, CPA, CGA
August 19, 2016

2. Disclaimer
• This presentation is on view of Retail Sales in Canada

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
• Summary
• Key Segments
• Retail sales by province
• Consumer Price Index (CPI) – Inflation
• Retail Pricing
• On-line Retailing
• Android Boxes

5. • Overall
• Retail sales edged down 0.1% to $44.1 billion in June. Weaker sales at food and beverage stores and general merchandise
stores offset higher sales at motor vehicle and parts dealers.
• Sales were down in 7 of 11 subsectors, representing 54% of retail trade.
• After removing the effects of price changes, retail sales in volume terms declined 0.3% in June.
Store Sales
• Food and beverage stores (-1.5%) recorded the largest decrease in dollar terms among subsectors in June. After
advancing 6.4% in May, sales at beer, wine and liquor stores were down 4.7%, the largest monthly drop since June 2013.
Receipts at supermarkets and other grocery stores fell 0.9% in June. Following three months of declines, sales at specialty
food stores posted a 1.1% gain. Sales at convenience stores were up 0.3%.
• General merchandise stores recorded a 1.5% sales decrease in June, down for the second month in a row.
• Sales at building material and garden equipment and supplies dealers (-1.9%) fell for the third time in four months.
• Clothing and clothing accessories stores posted a 1.7% sales decline in June. Sales at clothing stores (-1.7%) and shoe stores (-
3.6%) were down, following gains in May. Jewellery, luggage and leather goods stores recorded a 1.1% sales increase.
• Sales at motor vehicle and parts dealers were up 2.0% in June. The gain in this subsector was attributable to a 2.5% increase
at new car dealers, where sales rose for the first time in five months. Automotive parts, accessories and tire stores (+0.8%)
and other motor vehicle dealers (+0.8%) also recorded higher sales. Conversely, sales at used car dealers (-1.8%) decreased
for the fourth straight month.
• Sales at gasoline stations (+1.8%) rose for the third consecutive month, largely reflecting higher prices at the pump
Provinces
• Retail sales fell in five provinces in June, with Quebec (-0.8%) reporting the largest decrease in dollar terms. The sales decline
in Quebec was mainly due to weaker sales at food and beverage stores and new car dealers.
• Retail sales in Alberta (-0.4%) fell for the second month in a row. Lower sales were recorded at clothing stores and building
material and garden equipment and supplies dealers. New car dealers and gasoline stations posted higher sales in June.
• In Nova Scotia, sales were down 0.8%, mainly as a result of lower sales at motor vehicle and parts dealers.
• Sales in Saskatchewan advanced 2.1% in June, led by stronger sales at motor vehicle and parts dealers.
• In New Brunswick, sales rose 1.8% in June on the strength of higher sales at new car dealers, which preceded a two
percentage point increase in the harmonized sales tax in New Brunswick.

6. • Retail sales were weaker on the
month with some pretty good misses
in both the headline and the ex-auto
figures.
• The headline came in at -0.1% vs
+0.5% (the prior month was also
revised lower at +0.8% vs +0.9%).
The ex autos was even worse as sales
fell -0.8% vs +0.3% estimate.
Source:
http://www.nasdaq.com/article/canada
-retail-sales-for-june-01-vs-05-estimate-
cm667540#ixzz4HnLsqJFo

7. Large Retailers

8. Provinces

9. CPI – Canada

10. Retail Pricing / Canada

11. Online – Retailing Canada
• One option under consideration is allocating commissions from online
sales to stores near the shopper's home. The Retail Council of Canada
said designing a good compensation strategy is challenging. It's
especially difficult figuring out how to divide store rewards among
individual sales associates, noted senior vice-president Michael
LeBlanc. Source: http://www.cbc.ca/news/canada/montreal/online-
sales-canada-employee-commission-review-2016-1.3682985

12. Android Boxes
• The Federal Court in Canada has handed down a interlocutory
injunction against distributors of Android-based set-top boxes
configured for piracy. The devices, which are loaded with software
including Kodi (with pirate addons) and Showbox, are now banned
from sale pending a full trial.
• Source: https://torrentfreak.com/canada-federal-court-restrains-sale-
of-pirate-boxes-160610/

13. Key sectors/comments
• Home Improvements - http://www.cbc.ca/news/business/lowes-
rona-outlook-1.3724972
• Walmart/eCommerce -
http://www.recode.net/2016/8/18/12533224/walmart-ecommerce-
growth-accelerates-q2-2016
• http://globalnews.ca/news/2877996/retail-council-urges-
governments-not-to-give-duty-tax-breaks-to-u-s-online-retailers/
• http://www.hardwareretailing.com/industry-news/