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RCC Launches Task Force to Address Alberta Labour Supply Crunch
EDMONTON - A straw poll of 29 retail companies represented at the inaugural meeting of Retail Council of Canada's Alberta Retail Labour Supply Task Force revealed that collectively they have 8,800 positions in the province they cannot currently fill.
"That's a figure that confirms why retailers are motivated like never
before to come together to develop solutions that will begin to address this
issue," said Task Force Co-Chair Kevin Higa, Chief Financial Officer of
Edmonton-based retailer Running Room.
"There is no silver bullet," echoed Task Force Co-Chair Kathy Martin, VP
of Human Resources at Canadian Tire. "But working with strategic partners like
the Government of Alberta and the University of Alberta, the retail sector can
recruit and retain more people by positioning itself more effectively as an
employer of choice and an attractive career."
The Task Force met this week with officials of Alberta's Ministry of
Human Resources and Employment to provide input on the government's draft
retail sub-sector labour supply strategy.
"The retail sector has demonstrated real leadership by being one of the
first out of the gate to work in partnership with government to develop a
strategy," said Susan Williams, Assistant Deputy Minister of Human Resources
and Employment. "And to recognize that the onus for implementing solutions is
on industry."
"There are a range of tactics to be pursued in the months ahead, but the
key is for retailers to do a better job telling their story of the variety of
excellent career options that exist in retail," said Paul McElhone, Executive
Director the Canadian Institute for Retailing and Services at the University
of Alberta which co-hosted the Task Force meeting in conjunction with Retail
Council of Canada.
Next steps for the Task Force include finalizing Alberta's retail labour
supply strategy, benchmarking retail compensation levels in Alberta, lobbying
government to make changes to immigration policy, exploring how to more
effectively connect with under-utilized segments of the labour pool such as
mature workers, new immigrants, persons with disabilities and Aboriginals, and
sharing best practices in retail and recruitment.
RCC is establishing a full-time office in Edmonton to spearhead the
initiative.
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail.
It is a not-for-profit association representing more than 40,000 stores of all
retail formats, including independent merchants, regional and national mass
and specialty chains, and online merchants.
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NEW! Thursday and Friday Evening Shopping in the Village of St. Jacobs
The Village of St. Jacobs and St. Jacobs Country announced that starting May 18 local shops will be open Thursday and Friday evenings until 8 pm.
Riverworks
A Touch of Scotland
Ashfields (opening July)
Alexandria’s (opening July)
Alexsport (opening July)
Caroc Unique Gifts
Crystals
Dansk
Earthwinds
Grand River Garment Co.
Head 2 Toe Lifestyle Clothing
Lizzy R (2nd location)
McKerron House
Pimms Trading Post
Red Coral Fashions
Riverworks Book Market
Taste the 4th Sense
Vintage Soul
The Mill
Creative Baskets
Gecko beads
Mediaeval Arts
Scrapping Turtle
Silo Café
Silo Weavers
The Glass Bead Game
Top Drawer
Turtle Dove Native Gifts
Food Stores
Stone Crock Bakery
Stone Crock Meats & Cheese
The Farm Pantry
Upper Village
Creature Comfort Pet Emporium
Exhibits - NEW!
Model Railway (At the Mill, 4th floor)
Shops Along King & Front Street
A Gift To Remember
Angel Treasures
Casa Latina
Chocolates 'N More
Essentially Black
Farm Pantry
Grey Fort Quilts
Hamel Broom
It's Artistic
La Creme
Lizzy R Fashions
Magic Mountain
Magnolia's Gifts & Fashions
Mary Catherine's Linens & Lace
Moser's Ice Cream Caboose
Quaint Essentials
Robert Brown Glass & Metal Studio
Shadetree Gifts
Taya
more... |
International merchandise trade: Annual review 2005
In spite of the continued strength of the Canadian dollar, Canada's merchandise export values and volumes both hit record highs in 2005, according to a new publication which identifies and explains major trends in Canada's international merchandise trade for 2005.
In the latter part of 2005, there was a surge in energy export values as hurricanes in the Gulf Coast upset North American natural gas and crude petroleum supplies and sent prices soaring. The surge in prices pushed energy export values up 28.2%, guaranteeing energy the title of fastest growing export commodity for the year.
Energy was not the only story for 2005 as high-tech export volumes reached levels attained during the high-tech boom and automotive exports showed strength despite several firms restructuring their operations.
It was a year for records as import values and volumes also registered historic highs. Nearly two-thirds of the overall increase in real imports was attributed to a surge in demand for machinery and equipment as Canadian firms took advantage of low interest rates, historically high business profits, and a stronger Canadian dollar pushing down import prices.
For the first time ever, Canadian merchandise imports from Mexico ($14.6 billion) were higher than from Japan, moving Mexico from Canada's fourth to third largest source of imported products in 2005. Imports originating in China, which became the second largest source of imports in 2002, hit $29.5 billion in 2005, an increase of 22.3% over 2004.
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Family and Children’s Services Foundation “Camps Out” at Conestoga Mall
Waterloo - Family & Children's Services Foundation (F&CSF) and Conestoga Mall in Waterloo have entered into a unique partnership
to benefit abused and neglected children in Waterloo Region to experience the joys of summer. From May 5 to 7,
F&CSF invites you to visit or “Camp Conestoga” display in front of Winners at Conestoga Mall. The event will raise
money to support camp and recreational experiences for abused and neglected children in the community.
During the three days Conestoga Mall will be turned into a whimsical camp scene, courtesy of Waterloo’s Adventure
Guide, where visitors will have the opportunity to see profiles of children waiting to go to camp (we are affectionately
calling these “Life Adventure sponsorships”), purchase a piece of much-needed recreational equipment such as sleeping
bags, sunscreen, towels, or back packs; or purchase a raffle ticket for a chance to win amazing prizes from Grand Experiences
and Adventure Guide. Volunteers from Family & Children's Services will be on hand to take donations on
behalf of the Foundation.
Merchants from the mall have also joined in on the fun and are offering several camp themed activities for the entire
family.
. Coles Book Readings Ghost Stories Friday at 7pm, and Kids Stories Saturday at 10am
. Scholar’s Choice Camp Crafts Saturday at 1pm and Sunday at 3pm
. Camp McGovern will host A Survival Guide for a First-Time Over Night Camper Friday at 2pm and
Camp-What to Expect & How to Choose the Right One Saturday at 12pm
The campaign will kick off at Montana’s Cookhouse in Kitchener and Cambridge on Friday, April 28th where the rustic,
outdoor atmosphere and camp-side menu is a perfect fit for the Life Adventure Campaign and patrons will be asked
to purchase a colourful Life Adventure card created by Sue Wicks for a twoonie.
For many children leaving abusive and neglectful situations or living at home where parents are struggling financially,
most of the little ‘extras’ that make childhood special are beyond their grasp. The chance to play hockey, learn a instrument,
or to go to summer camp are just not an option. In fact, summer vacation may be a time of boredom and stress for
both parent and child.
“For some families whose income may be very limited, providing their children with opportunities such as going to
camp can be a major challenge or beyond reach entirely. Many of the families served by Family and Children’s Services
face this reality,” says Peter Ringrose, Executive Director of Family & Children’s Service. “The Life Adventure Campaign
will help provide local children from these families an opportunity to develop talents, skills, and leadership to help
them succeed and give them strengths they will draw on for the rest of their lives.”
continued on next page
Darby had one thing to say about
her 2005 Camp experience...
Thank you!
To find out how you can sponsor a summer adventure for a child from this community, visit our website at www.facswaterloo.org or call 576-0540 and ask for Fundraising and Communications. |
Reinventing the Sales Receipt:
NCR Introduces Simultaneous Two-Sided Thermal Printing Technology cuts paper usage, helps speed shoppers through the store
DAYTON, Ohio – NCR Corporation, the company that made “get a receipt” a byword of virtually every retail transaction, today announced the latest technology innovation to hit the checkout – simultaneous two-sided thermal receipt printing.
By printing on both sides of a receipt, retailers can reduce their paper roll receipt needs by as much as 50 percent and save additional money on freight, storage and disposal. The technology also introduces efficiencies at the point of sale (POS) by requiring fewer paper roll changes, which helps shoppers get through the store faster. And reduced paper consumption will also benefit the environment by helping save trees.
In addition to store checkouts, NCR’s patented technology opens the door for two-sided printing applications in banking, event ticketing, self-service kiosks and more.
The first new products based on the technology include the industry’s only two-sided POS receipt printer, the NCR RealPOS™ 7168, and NCR two-sided thermal receipt paper.
Besides selling the new printer and paper rolls globally through its direct sales force and channel partners, NCR is offering technology licenses to other printer and paper manufacturers. Inquiries regarding licensing terms should be directed to two.sided@ncr.com.
“This technology has many exciting applications,” said Peter Dorsman, vice president and general manager of NCR’s Systemedia Division, a leading provider of printer consumables such as paper rolls, laser cartridges and RFID solutions. “Through the development of this new two-sided technology, NCR opens a world of opportunities for businesses to reduce costs, customize communications and better serve their customers. NCR will also be making this technology widely available through licensing agreements with printer manufacturers and OEMs.”
NCR’s two-sided printer allows retailers to customize messaging in receipts rather than relying on paper rolls with pre-printed promotions that cannot be changed. Plus, it can print in combinations of black on one side of the receipt with black, red or blue on the other side with no additional cost for the paper or the printer, to attract attention and promote more effectively.
A multifunction printer that also offers an impact slip station printer with optional MICR, cheque-flip and cheque-imaging functionality, the NCR RealPOS 7168 – along with NCR two-sided thermal paper rolls – will be available for customer shipments in the third quarter of this year. NCR plans additional two-sided technology introductions over the next six to 18 months.
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Wholesale trade for February 2006
Wholesale sales declined in February after advancing strongly in the previous two months. The broad-based declines caused total sales to fall 1.1% to $41.0 billion.
Sales fell in five of the seven sectors, with the largest declines in personal and household goods (-3.7%) and automotive products (-1.1%). The farm products sector posted a 4.5% increase in sales after three months of steep declines.
Despite lower sales in February, wholesale sales have been on an upward trend since September 2003, with strength in most trade groups. Previously, slumping motor vehicle sales were the main cause of a decline that began in April 2003.
In constant prices, wholesale sales decreased by 0.2% in February.
Lower wholesale sales of apparel pulls sector down
A drop in wholesale sales of apparel (-25.7%), caused the personal and household goods sector to decline in February (-3.7%). Previously, wholesale sales of apparel had followed an upward trend since the last quarter of 2004. This trade group had greatly benefited when the Agreement on Textiles and Clothing, which imposed import quotas, was terminated. This enabled some wholesalers to obtain supplies cheaply. Even before the Agreement was abolished, more than two-thirds (68%) of apparel sold wholesale in Canada came from abroad.
Sales of household and personal products fell 0.3%, the second decline in three months. These declines followed two months of robust sales. This group had benefited from the strong popularity of home entertainment equipment and the release of popular DVDs in previous months. The household and personal products group has generally posted rising sales since mid-2003, partly owing to the booming real estate market.
For their part, pharmaceutical wholesalers posted a second consecutive monthly increase in sales in February (+1.3%).
Weak motor vehicle sales in February mask historic high
After posting a hefty 6.7% increase in January, motor vehicle wholesalers saw their sales decrease 1.6% in February. Wholesalers in this group were hit in February by a drop in vehicle exports and decreased demand from Canadian dealers. Approximately one-quarter of the sales of this trade group are destined for foreign markets.
Wholesale sales of motor vehicles have grown at an especially noteworthy pace since August 2005. In the past seven months, wholesalers have enjoyed four monthly sales increases of at least 1.3%. Wholesale sales in February were 20.3% higher than in the same month last year. This strong showing is partly attributable to an increase in exports beginning in mid-2005.
For the second time in six months, wholesale sales of motor vehicle parts were up (+1.0%). Wholesalers in this industry, who do not supply auto plants but sell mainly to retailers and dealers, have posted generally stable sales since July 2004.
Farm products sector rebounds
After three months of steep declines, farm product wholesalers registered a 4.5% increase in sales in February, owing to a rise in sales of live animals as a result of increased exports. Wholesalers in this group had strongly benefited from the United States reopening the border in July 2005 to cattle under 30 months of age. Exports of live animals then grew rapidly, peaking in October 2005. In the following two months, cattle exports declined.
Wholesale sales were down throughout Canada except in Saskatchewan, Prince Edward Island and Alberta
Wholesale sales fell in February in all provinces and territories except Saskatchewan (+6.6%), Prince Edward Island (+5.0%) and Alberta (+1.2%). With sales down in Canada as a whole, declines of more than 1.0% were recorded in seven provinces and territories.
Manitoba wholesalers sold $1.0 billion worth of goods in February, down 16.5% compared to January and the steepest decline for any Canadian province. However, Manitoba's total sales account for less than 3% of sales at the national level. The personal and household goods sector was responsible for much of the weak performance of the province's wholesalers in February. However, this sector enjoyed strong growth in previous months.
In Saskatchewan, wholesale sales rose 6.6% in February. This increase was attributable to a rise in sales of farm products (such as live animals) and to the "other products" category (including seed, fertilizer and agricultural chemicals).
Wholesale sales in Prince Edward Island rose 5.0% in February. This increase was attributable to a sharp increase in sales of food products as well as to the "other products" category. Wholesalers in that province have generally posted stable sales since September 2005.
Wholesale sales increased by 1.2% in Alberta in February. Alberta wholesalers, who have experienced a string of seven consecutive monthly increases, have seen their sales climb by just over 18% since the end of 2004, compared to 7.3% for the rest of Canada. On the strength of Alberta's oil boom, the growth of wholesale sales in that province has generally exceeded the national average since 2002. Alberta sales account for approximately 12% of the Canadian volume.
Inventory-to-sales ratio rises
The steep drop in sales, combined with an increase in inventories, boosted the inventory-to-sales ratio to 1.22, up from 1.20 in January. The inventory-to-sales ratio is still relatively low on a historical basis. This ratio has generally been stable since October 2004, following a downward period that began in October 2003.
The increase in inventories in February (+0.4%) is largely attributable to the motor vehicles group. Excluding this group, inventories fell 0.4%. The trend in total inventories has been generally upward since November 2003, after a five-month period in which wholesalers cut back their inventories.
| Wholesale merchants' sales |
| |
February 2005 |
November 2005r |
December 2005r |
January 2006r |
February 2006p |
January to February 2006 |
February 2005 to February 2006 |
| |
seasonally adjusted |
| |
$ millions |
% change |
| Total sales |
38,344 |
40,179 |
40,574 |
41,429 |
40,992 |
-1.1 |
6.9 |
| Farm products |
478 |
515 |
487 |
453 |
473 |
4.5 |
-1.0 |
| Food, beverages and tobacco products |
7,193 |
7,338 |
7,290 |
7,385 |
7,362 |
-0.3 |
2.3 |
| Food products |
6,561 |
6,675 |
6,675 |
6,728 |
6,684 |
-0.7 |
1.9 |
| Alcohol and tobacco |
632 |
663 |
615 |
657 |
679 |
3.2 |
7.4 |
| Personal and household goods |
5,400 |
6,100 |
5,893 |
5,952 |
5,731 |
-3.7 |
6.1 |
| Apparel |
763 |
913 |
991 |
971 |
722 |
-25.7 |
-5.4 |
| Household and personal products |
2,178 |
2,588 |
2,355 |
2,404 |
2,398 |
-0.3 |
10.1 |
| Pharmaceuticals |
2,458 |
2,599 |
2,547 |
2,577 |
2,611 |
1.3 |
6.2 |
| Automotive products |
7,341 |
7,636 |
8,132 |
8,571 |
8,475 |
-1.1 |
15.5 |
| Motor vehicles |
5,768 |
6,037 |
6,606 |
7,051 |
6,940 |
-1.6 |
20.3 |
| Motor vehicle parts and accessories |
1,573 |
1,599 |
1,527 |
1,520 |
1,535 |
1.0 |
-2.4 |
| Building materials |
5,550 |
5,704 |
5,831 |
5,915 |
5,913 |
0.0 |
6.5 |
| Building supplies |
3,169 |
3,434 |
3,523 |
3,548 |
3,568 |
0.6 |
12.6 |
| Metal products |
1,155 |
1,194 |
1,185 |
1,187 |
1,144 |
-3.6 |
-0.9 |
| Lumber and millwork |
1,226 |
1,076 |
1,123 |
1,180 |
1,201 |
1.7 |
-2.1 |
| Machinery and electronic equipment |
7,679 |
8,120 |
8,143 |
8,451 |
8,366 |
-1.0 |
8.9 |
| Machinery and equipment |
3,682 |
3,847 |
3,961 |
4,037 |
3,930 |
-2.7 |
6.7 |
| Computer and other electronic equipment |
2,249 |
2,463 |
2,320 |
2,534 |
2,504 |
-1.2 |
11.3 |
| Office and professional equipment |
1,748 |
1,811 |
1,862 |
1,880 |
1,933 |
2.8 |
10.6 |
| Other products |
4,703 |
4,766 |
4,797 |
4,702 |
4,672 |
-0.6 |
-0.7 |
| Total, excluding automobiles |
31,003 |
32,543 |
32,442 |
32,858 |
32,517 |
-1.0 |
4.9 |
| Sales, province and territory |
|
|
|
|
|
|
|
| Newfoundland and Labrador |
213 |
215 |
223 |
224 |
218 |
-2.4 |
2.5 |
| Prince Edward Island |
51 |
36 |
35 |
34 |
36 |
5.0 |
-29.8 |
| Nova Scotia |
522 |
530 |
503 |
536 |
526 |
-1.9 |
0.8 |
| New Brunswick |
436 |
400 |
398 |
395 |
392 |
-0.7 |
-10.2 |
| Quebec |
7,497 |
7,814 |
7,543 |
7,662 |
7,620 |
-0.6 |
1.6 |
| Ontario |
19,258 |
20,062 |
20,524 |
21,128 |
20,958 |
-0.8 |
8.8 |
| Manitoba |
995 |
1,108 |
1,160 |
1,191 |
995 |
-16.5 |
0.0 |
| Saskatchewan |
1,195 |
1,196 |
1,127 |
1,010 |
1,076 |
6.6 |
-9.9 |
| Alberta |
4,329 |
4,756 |
4,869 |
4,955 |
5,016 |
1.2 |
15.9 |
| British Columbia |
3,820 |
4,030 |
4,165 |
4,264 |
4,129 |
-3.2 |
8.1 |
| Yukon |
7 |
12 |
10 |
10 |
10 |
-3.8 |
34.3 |
| Northwest Territories |
19 |
18 |
16 |
18 |
15 |
-17.1 |
-21.5 |
| Nunavut |
2 |
2 |
1 |
1 |
1 |
-7.7 |
-21.2 |
|
| Wholesale merchants' inventories and inventory-to-sales ratio |
| |
February 2005 |
November 2005r |
December 2005r |
January 2006r |
February 2006p |
January to February 2006 |
February 2005 to February 2006 |
January 2006r |
February 2006p |
| |
Wholesale inventories |
Inventory-to-sales ratio |
| |
seasonally adjusted |
| |
$ millions |
% change |
| |
| Inventories |
46,646 |
48,774 |
49,130 |
49,743 |
49,921 |
0.4 |
7.0 |
1.20 |
1.22 |
| Farm products |
151 |
188 |
138 |
170 |
161 |
-5.7 |
6.4 |
0.38 |
0.34 |
| Food products |
4,376 |
4,331 |
4,305 |
4,376 |
4,285 |
-2.1 |
-2.1 |
0.65 |
0.64 |
| Alcohol and tobacco |
300 |
281 |
288 |
278 |
294 |
5.6 |
-1.9 |
0.42 |
0.43 |
| Apparel |
1,577 |
1,590 |
1,588 |
1,598 |
1,587 |
-0.7 |
0.6 |
1.65 |
2.20 |
| Household and personal products |
3,371 |
3,433 |
3,517 |
3,748 |
3,699 |
-1.3 |
9.7 |
1.56 |
1.54 |
| Pharmaceuticals |
2,700 |
3,138 |
3,027 |
3,107 |
3,100 |
-0.2 |
14.8 |
1.21 |
1.19 |
| Motor vehicles |
4,158 |
4,479 |
4,679 |
4,577 |
4,938 |
7.9 |
18.8 |
0.65 |
0.71 |
| Motor vehicle parts and accessories |
3,078 |
3,262 |
3,193 |
3,358 |
3,200 |
-4.7 |
4.0 |
2.21 |
2.08 |
| Building supplies |
4,791 |
5,092 |
5,259 |
5,434 |
5,476 |
0.8 |
14.3 |
1.53 |
1.53 |
| Metal products |
2,316 |
2,326 |
2,336 |
2,256 |
2,260 |
0.1 |
-2.4 |
1.90 |
1.98 |
| Lumber and millwork |
1,102 |
1,050 |
1,058 |
1,025 |
1,023 |
-0.1 |
-7.1 |
0.87 |
0.85 |
| Machinery and equipment |
8,820 |
9,397 |
9,518 |
9,679 |
9,672 |
-0.1 |
9.7 |
2.40 |
2.46 |
| Computer and other electronic equipment |
1,386 |
1,493 |
1,456 |
1,488 |
1,542 |
3.7 |
11.3 |
0.59 |
0.62 |
| Office and professional equipment |
2,505 |
2,495 |
2,362 |
2,496 |
2,484 |
-0.5 |
-0.9 |
1.33 |
1.29 |
| Other products |
6,016 |
6,220 |
6,405 |
6,153 |
6,200 |
0.8 |
3.1 |
1.31 |
1.33 |
|
|
Retail trade for February 2006
After strong consumer spending in the previous month, retail sales slid back by 0.4% in February to $31.6 billion. February's retail sales decline was the first after four consecutive months of sales increases. Retail sales have maintained strong upward momentum since late 2003.
The automotive sector was responsible for the bulk of the setback, with sales falling 2.5% after four straight months of increases. Excluding sales by dealers of new, used and recreational vehicles and auto parts, which account for almost a quarter of the retail industry, retail sales edged up 0.3%.
Keeping prices constant, retail sales actually edged up 0.2% in February after an increase of 0.8% in January. This was mainly due to gasoline prices, which dropped significantly in February.
Retailers in sectors that experienced strong January sales (likely due to the redemption of gift cards and the increased observance of cultural and ethnic holidays in January) saw slight declines in February. Miscellaneous retailers (-1.7%), furniture, home furnishings and electronics stores (-0.8%) and general merchandise stores (-0.2%) saw their sales decline after registering increases of 4.5%, 4.9% and 3.3% respectively in January.
On the other hand, the building and outdoor home supplies stores sector impressively maintained its strength in February, increasing its sales by 1.0% after rising by a substantial 3.2% in January. Food and beverage stores (+1.6%) bounced back from a weak month in January. Continued growth was seen among pharmacies and personal care stores (+1.9%) as well as clothing and accessories stores (+0.6%).
Autos drive down sales
February was a weak month for the automotive sector due to declines in sales at new car dealers and gasoline stations. Sales of cars and trucks dipped slightly at new car dealers, causing a decrease of 3.5% in their sales from January's figure, and down 1.5% from the same month last year. Sales of new car dealers have reached a plateau after strong sales starting in 2004 had peaked in the summer of 2005 with special incentives.
The value of sales at gasoline stations suffered as the price of gasoline fell 6.8% in February after having risen sharply in January. Nevertheless, sales were still 10.6% higher than a year ago, having been on the rise since the fall of 2003.
Sales pause in February after January's boost in some sectors
In general, stores that are thought to have benefited from gift card redemptions and cultural and ethnic celebrations in January saw sales fall in February. However, February's sales decline in these stores were not strong enough to offset the more substantial gains made in January, pointing to a strong underlying momentum.
Sales fell in sporting goods, hobby, music and book stores (-3.3%), home furnishing stores (-3.1%), furniture stores (-1.7%) and general merchandise stores (-0.2%). However, all of these stores registered robust year-over-year increases ranging from 6.4% in general merchandise stores to 12.6% in home furnishing stores.
Computer and software stores lost any gains they achieved in January. However, despite fluctuations, sales have remained, on average, fairly flat since 2004.
The exceptions to this pattern included home electronics and appliance stores, whose sales continued to rise with a third straight increase in sales (+1.6%) making up for weakness in the latter half of last year. Business was also booming for home centres and hardware stores, as sales increased for the seventh consecutive month (+0.4%). Specialized building material and garden stores also maintained positive sales in February (+3.7%), making up for a period of weakness in the fall of 2005.
Ontario and Newfoundland and Labrador lag behind
Ontario (-2.0%) and Newfoundland and Labrador (-4.5%) showed the most significant decline in retail sales in February. Aside from slight decreases in sales in Nova Scotia (-0.5%) and New Brunswick (-0.1%), all other provinces and territories registered positive sales growth.
Alberta, especially, saw no sign of weakening as retailers in this province enjoyed their fifth consecutive increase in February (+1.4%). Albertans were reaping the benefits of a strong provincial economy. In addition to gains in disposable income from the provincial personal rebates issued in early 2006, Albertans also saw large employment gains in February. Wages in this province continued to rise as employers competed for scarce labour.
Ontario's decrease in sales was mainly concentrated in the automotive sector. Besides miscellaneous retailers, who also had a setback in sales, all other retailers in this province increased their sales from January or had no change. This was the first decrease for retail sales in Ontario after four consecutive months of gains.
February's drop in sales for retailers in Newfoundland and Labrador came after a period of strong growth that began in the last quarter of 2005. New car dealers were the main drag on retail sales for this province in February.
Related indicators for March
Total employment increased by 51,000 in March, causing the employment rate to reach a record high of 62.9%. The unemployment rate declined 0.1 percentage points to 6.3%, a 32-year low.
Housing starts rose 0.4% in March. Despite the rise in multiple urban starts (+18.6%) in March, single urban starts decreased for a second consecutive month (-8.9%).
Based on preliminary figures from the auto industry, the number of new motor vehicles sold in March increased by about 1.0%. Both passenger car and truck sales gained during the month.
| Retail sales |
| |
February 2005 |
November 2005r |
December 2005r |
January 2006r |
February 2006p |
January to February 2006 |
February 2005 to February 2006 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
| Automotive |
10,258 |
10,723 |
10,757 |
10,850 |
10,580 |
-2.5 |
3.1 |
| New car dealers |
6,013 |
6,136 |
6,082 |
6,142 |
5,926 |
-3.5 |
-1.5 |
| Used and recreational motor vehicle and parts dealers |
1,272 |
1,287 |
1,337 |
1,359 |
1,367 |
0.6 |
7.5 |
| Gasoline stations |
2,973 |
3,300 |
3,339 |
3,349 |
3,287 |
-1.9 |
10.6 |
| Furniture, home furnishings and electronics stores |
2,113 |
2,162 |
2,202 |
2,309 |
2,291 |
-0.8 |
8.4 |
| Furniture stores |
750 |
762 |
769 |
823 |
809 |
-1.7 |
7.9 |
| Home furnishings stores |
385 |
417 |
428 |
447 |
434 |
-3.1 |
12.6 |
| Computer and software stores |
134 |
139 |
139 |
141 |
136 |
-3.5 |
1.3 |
| Home electronics and appliance stores |
844 |
844 |
867 |
898 |
912 |
1.6 |
8.1 |
| Building and outdoor home supplies stores |
1,843 |
1,966 |
1,974 |
2,036 |
2,057 |
1.0 |
11.6 |
| Home centres and hardware stores |
1,464 |
1,592 |
1,604 |
1,645 |
1,651 |
0.4 |
12.7 |
| Specialized building materials and garden stores |
379 |
374 |
370 |
392 |
406 |
3.7 |
7.2 |
| Food and beverage stores |
7,122 |
7,204 |
7,280 |
7,157 |
7,273 |
1.6 |
2.1 |
| Supermarkets |
5,168 |
5,245 |
5,327 |
5,143 |
5,251 |
2.1 |
1.6 |
| Convenience and specialty food stores |
770 |
747 |
759 |
771 |
776 |
0.6 |
0.7 |
| Beer, wine and liquor stores |
1,183 |
1,212 |
1,194 |
1,244 |
1,247 |
0.2 |
5.4 |
| Pharmacies and personal care stores |
1,953 |
2,055 |
2,057 |
2,070 |
2,109 |
1.9 |
8.0 |
| Clothing and accessories stores |
1,757 |
1,788 |
1,785 |
1,800 |
1,811 |
0.6 |
3.1 |
| Clothing stores |
1,352 |
1,359 |
1,355 |
1,374 |
1,377 |
0.2 |
1.8 |
| Shoe, clothing accessories and jewellery stores |
405 |
430 |
430 |
426 |
435 |
2.0 |
7.3 |
| General merchandise stores |
3,601 |
3,699 |
3,715 |
3,837 |
3,831 |
-0.2 |
6.4 |
| Miscellaneous retailers |
1,568 |
1,597 |
1,602 |
1,675 |
1,647 |
-1.7 |
5.0 |
| Sporting goods, hobby, music and book stores |
775 |
807 |
810 |
857 |
828 |
-3.3 |
6.9 |
| Miscellaneous store retailers |
793 |
790 |
792 |
818 |
818 |
0.1 |
3.2 |
| Total retail sales |
30,214 |
31,195 |
31,373 |
31,734 |
31,599 |
-0.4 |
4.6 |
| Total excluding new car dealers, used and recreational motor vehicle and parts dealers |
22,928 |
23,772 |
23,954 |
24,233 |
24,306 |
0.3 |
6.0 |
| Provinces and territories |
|
|
|
|
|
|
|
| Newfoundland and Labrador |
493 |
497 |
503 |
515 |
492 |
-4.5 |
-0.2 |
| Prince Edward Island |
126 |
120 |
121 |
123 |
125 |
1.5 |
-0.8 |
| Nova Scotia |
888 |
889 |
917 |
932 |
927 |
-0.5 |
4.5 |
| New Brunswick |
703 |
710 |
714 |
723 |
722 |
-0.1 |
2.6 |
| Quebec |
6,858 |
7,000 |
6,974 |
7,041 |
7,091 |
0.7 |
3.4 |
| Ontario |
11,152 |
11,405 |
11,540 |
11,601 |
11,370 |
-2.0 |
1.9 |
| Manitoba |
1,027 |
1,049 |
1,039 |
1,042 |
1,047 |
0.5 |
1.9 |
| Saskatchewan |
898 |
927 |
921 |
935 |
936 |
0.1 |
4.1 |
| Alberta |
3,877 |
4,223 |
4,301 |
4,392 |
4,454 |
1.4 |
14.9 |
| British Columbia |
4,084 |
4,266 |
4,240 |
4,324 |
4,327 |
0.1 |
6.0 |
| Yukon |
36 |
38 |
37 |
36 |
37 |
1.9 |
1.6 |
| Northwest Territories |
50 |
49 |
48 |
51 |
51 |
0.3 |
1.1 |
| Nunavut |
21 |
21 |
21 |
21 |
21 |
1.3 |
3.5 |
|
| Retail sales |
| |
February 2005 |
January 2006r |
February 2006p |
February 2005 to February 2006 |
| |
Unadjusted |
| |
$ millions |
% change |
| Automotive |
8,402 |
8,744 |
8,666 |
3.1 |
| New car dealers |
4,891 |
4,716 |
4,806 |
-1.7 |
| Used and recreational motor vehicle and parts dealers |
919 |
955 |
993 |
8.1 |
| Gasoline stations |
2,593 |
3,072 |
2,867 |
10.6 |
| Furniture, home furnishings and electronics stores |
1,657 |
1,997 |
1,821 |
9.9 |
| Furniture stores |
585 |
703 |
642 |
9.8 |
| Home furnishings stores |
305 |
377 |
346 |
13.3 |
| Computer and software stores |
124 |
144 |
125 |
1.4 |
| Home electronics and appliance stores |
643 |
773 |
707 |
10.0 |
| Building and outdoor home supplies stores |
1,191 |
1,394 |
1,341 |
12.5 |
| Home centres and hardware stores |
949 |
1,147 |
1,075 |
13.3 |
| Specialized building materials and garden stores |
243 |
248 |
265 |
9.4 |
| Food and beverage stores |
6,112 |
6,352 |
6,267 |
2.5 |
| Supermarkets |
4,576 |
4,813 |
4,667 |
2.0 |
| Convenience and specialty food stores |
650 |
661 |
660 |
1.5 |
| Beer, wine and liquor stores |
886 |
878 |
941 |
6.1 |
| Pharmacies and personal care stores |
1,785 |
1,993 |
1,945 |
9.0 |
| Clothing and accessories stores |
1,187 |
1,297 |
1,235 |
4.0 |
| Clothing stores |
897 |
1,003 |
922 |
2.8 |
| Shoe, clothing accessories and jewellery stores |
290 |
294 |
313 |
7.9 |
| General merchandise stores |
2,583 |
2,966 |
2,777 |
7.5 |
| Miscellaneous retailers |
1,219 |
1,434 |
1,286 |
5.5 |
| Sporting goods, hobby, music and book stores |
563 |
758 |
605 |
7.5 |
| Miscellaneous store retailers |
656 |
677 |
681 |
3.8 |
| Total retail sales |
24,137 |
26,178 |
25,338 |
5.0 |
| Total excluding new car dealers, used and recreational motor vehicle and parts dealers |
18,327 |
20,507 |
19,539 |
6.6 |
| Provinces and territories |
|
|
|
|
| Newfoundland and Labrador |
372 |
395 |
369 |
-0.7 |
| Prince Edward Island |
91 |
94 |
91 |
0.4 |
| Nova Scotia |
691 |
756 |
725 |
5.0 |
| New Brunswick |
542 |
581 |
560 |
3.3 |
| Quebec |
5,329 |
5,664 |
5,537 |
3.9 |
| Ontario |
8,917 |
9,631 |
9,091 |
2.0 |
| Manitoba |
827 |
854 |
844 |
2.1 |
| Saskatchewan |
714 |
771 |
746 |
4.6 |
| Alberta |
3,157 |
3,656 |
3,657 |
15.8 |
| British Columbia |
3,408 |
3,688 |
3,626 |
6.4 |
| Yukon |
27 |
28 |
27 |
1.5 |
| Northwest Territories |
44 |
42 |
45 |
2.0 |
| Nunavut |
17 |
18 |
18 |
4.8 |
|
|
Study: Canadian retailers competing for the consumer's food dollar 1997 to 2004
Canadian grocers are holding their own in face-to-face competition with general merchandise stores for the consumer's food dollar, and they appear to be faring much better than their American counterparts, according to a new study.
Canadian consumers do not get their groceries in general merchandise stores as much as their American counterparts do. The tendency for consumers to shop in only one store is much less popular on this side of the border.
The study analyzes the competition for the food dollar between food and beverage stores and general merchandise stores. It also compares the relative situation of these stores in both Canada and the United States.
Canadian food stores still have the lion's share of consumer spending on food. South of the border, American grocers have been losing ground to general merchandise stores.
In 2004, Canadian consumers spent $61.6 billion on food. For every $100 of this spending, consumers spent $83.90 in food stores, which was practically unchanged from $85.10 in 1998.
On the other hand, they spent $10.60 on food in general merchandise stores in 2004, up only slightly from $9.00 four years ago.
In contrast, for every US $100 American consumers spent on food, US $70.40 went to food stores in 2002, down from US $76.90 in 1997.
In order to keep their clientele, Canadian food retailers have been offering more diversified food products. They also offered more non-food items than American food retailers.
Between 1998 and 2004, the proportion of non-food sales in all food stores rose 5.1 percentage points in Canada. This growth was nearly five times the pace of 1.1 percentage points in the United States between 1997 and 2002.
Non-food sales consist primarily of necessities, such as health and personal care items. Sales of these items in food stores jumped more than 10% per year, which reduced the market share of other retailers.
In Canada, food stores increased their market share of sales of health and personal care items from 13.9% in 1998 to 16.8% in 2004. Food stores had the biggest gains in market share for medication (prescription and over-the-counter), vitamins, medicinal plants and other health supplements. This market share rose from 10.3% of total sales in 1998 to 14.1% in 2004.
These gains are partly due to more supermarkets with pharmacies as well as increased consumption of prescription and over-the-counter drugs. Food stores sold proportionally more of these health items than general merchandise stores.
One possible reason why Canadian food stores were more successful is that food stores invested more in their buildings than general merchandise stores. The reverse happened in the United States.
In Canada, food stores spent $1.1 billion in commercial buildings in 2005, while general merchandise stores spent $189 million. In other words, food stores accounted for 85.8% of the investment in these two sectors.
US general merchandise stores invested US $7.5 billion (69.3% of the total) in building construction while food stores invested US $3.3 billion (30.7% of the total).
Investment grew faster initially in the United States than in Canada in the 1990s as household demand was more robust. Consumption in Canada during this period was curbed by a long recession and the growth of cross-border shopping.
Canada had to wait until this decade to see investment by retailers increase rapidly, thanks to sustained growth in consumer spending and a declining dollar that kept Canadian consumers at home. This trend continued with the additional restrictions on border crossings imposed following September 11, 2001, in spite of the soaring loonie.
|
Quarterly Retail Commodity Survey Fourth quarter 2005 and annual 2005
Led by strong increases in sales of automotive fuels, oils and additives as well as hardware, lawn and garden products, retailers in 2005 registered their highest year-over-year increase in retail sales since 2002.
In total, consumers spent $369.2 billion in retail stores last year, up 6.2% from 2004. This was the highest growth rate since 2002 when it was 6.4%. Sales for the fourth quarter increased 5.4% over the same quarter in 2004.
Proportionately, of every $100 in consumer spending in retail stores last year, consumers spent about $22 on food and beverages, $22 on motor vehicles, parts and services, just over $9 on automotive fuels, oils and additives, $9 on furniture, home furnishings and electronics, $8 on clothing, footwear and accessories, $8 on health and personal care products and $7 on hardware, lawn and garden products.
Sales of automotive fuels, oils and additives increased 17.7% to $34.2 billion, the strongest growth since 2000 and the second consecutive year of double-digit increases. The gain was fuelled largely by a 12.8% increase in the price of gasoline.
About nine cents of every retail dollar was spent on automotive fuels, oils and additives in 2005, compared to only six cents in 1998. Consumers spent more than twice as much on automotive fuels, oils and additives in 2005 than they did in 1998.
Housing boom boosts hardware, home renovation products
Canada's ongoing housing boom contributed to an 8.6% increase in sales of hardware, lawn and garden products. Of this commodity grouping, sales of the largest component, hardware and home renovation products, reached $19.9 billion in 2005, up 8.2% over 2004.
Lawn and garden products were also strong with $5.3 billion in sales, up 10.2% over 2004. Since 2001, sales of lawn and garden products have increased by about 10% each year.
At the same time, sales of furniture, home furnishings and electronics increased 5.4% to $33.3 billion. Within this commodity group, sales of home furnishings (draperies, bedding, flooring and artwork) were particularly strong, increasing 6.1%. Consumers spent 6.2% more on household appliances in 2005 over the previous year. Sales of home electronics such as televisions, cameras, computer hardware and software and telephones rose 4.5% to $11.9 billion.
Sales of motor vehicles, parts and services increased 5.5% to $80.8 billion, the strongest gain in three years. Incentive programs helped to boost sales of new vehicles in 2005 by 5.6%, the highest increase since 2002. Sales of new vehicles accounted for 55% of total sales for this category. Meanwhile, sales of used vehicles rose by only 1.8%, while revenues from the sale of automotive parts and accessories jumped 9.5%.
Strongest gain in food, beverage sales in six years
Food and beverage sales by retailers rose 5.5% in 2005. This was the strongest increase since 1999. Yet, it was still below the overall annual increase (+6.2%) in retail sales in 2005. The three major components of the commodity group (food, non-alcoholic and alcoholic beverages) all increased at a similar rate.
Annual sales of clothing, footwear and accessories rose 4.0% to $30.4 billion, the strongest gain since 1999. Clothing prices declined 1.3% in 2005 when compared to 2004. Of every $100 in spending in this category, $57 went to women's wear, $29 to men's clothing and $12 to children's clothing.
On the other hand, consumer spending in retail stores on health and personal care products gained 5.2%, the weakest year-over-year growth in five years. Sales of prescription drugs, which represented over one-half of the spending in this category, rose 7.1%. This was much lower than gains in both 2002 and 2003, which exceeded 10%. Year-over-year sales of over-the-counter drugs and vitamins were up 2.9% in 2005, after increasing 3.1% in 2004.
Fourth quarter 2005: Automotive fuels, oils again lead the way
Automotive fuels, oils and additives was again the commodity group with the strongest year-over-year increase in the fourth quarter of 2005. Sales of the commodity rose 16.9% in the fourth quarter of 2005, after a 26.0% increase in the third quarter. This was largely driven by a fourth quarter increase of 13.8% in the price at the pump.
Overall, consumers spent $98.6 billion in retail stores in the last three months of 2005, up 5.4% from the same quarter in 2004. This was the weakest year-over-year gain since the first quarter of 2005. Sales rose in all major commodity groups. The strongest increases were seen in hardware, lawn and garden products (+9.1%) and furniture, home furnishings and electronics (+6.1%).
Sales of motor vehicles, parts and services amounted to $18.8 billion in the fourth quarter of 2005, up 3.6% over the same quarter in 2004. This was the lowest year-over-year increase since the first quarter of 2005.
Sales of new vehicles in the fourth quarter rose 2.3% compared to the same quarter in 2004, while used vehicle sales declined 1.8%. Some of the incentive programs introduced at the end of the second quarter of 2005 were discontinued before the end of the year. Automotive parts and accessories (including tires) advanced 11.7% during the fourth quarter.
| Annual sales by commodity, all retail stores |
| |
2003 |
2004 |
2005 |
2003 to 2004 |
2004 to 2005 |
| |
$ millions |
% change |
| Commodity |
|
|
|
|
|
| Food and beverages |
73,284 |
76,869 |
81,071 |
4.9 |
5.5 |
| Health and personal care products |
27,154 |
29,283 |
30,815 |
7.8 |
5.2 |
| Clothing, footwear and accessories |
28,156 |
29,206 |
30,360 |
3.7 |
4.0 |
| Furniture, home furnishings and electronics |
29,874 |
31,605 |
33,325 |
5.8 |
5.4 |
| Motor vehicles, parts and services |
76,271 |
76,599 |
80,784 |
0.4 |
5.5 |
| Automotive fuels, oils and additives |
25,325 |
29,016 |
34,164 |
14.6 |
17.7 |
| Housewares |
7,039 |
7,287 |
7,503 |
3.5 |
3.0 |
| Hardware, lawn and garden products |
20,998 |
23,189 |
25,190 |
10.4 |
8.6 |
| Sporting and leisure goods |
12,038 |
12,292 |
12,830 |
2.1 |
4.4 |
| All other goods and services |
31,889 |
32,357 |
33,133 |
1.5 |
2.4 |
| Total |
332,027 |
347,704 |
369,175 |
4.7 |
6.2 |
| Sales by commodity, all retail stores |
| |
Fourth quarter 2004r |
Third quarter 2005r |
Fourth quarter 2005p |
Fourth quarter 2004 to fourth quarter 2005 |
| |
unadjusted |
| |
$ millions |
% change |
| Commodity |
|
|
|
|
| Food and beverages |
20,587 |
21,051 |
21,496 |
4.4 |
| Health and personal care products |
7,913 |
7,645 |
8,350 |
5.5 |
| Clothing, footwear and accessories |
9,502 |
7,430 |
9,931 |
4.5 |
| Furniture, home furnishings and electronics |
9,906 |
8,278 |
10,507 |
6.1 |
| Motor vehicles, parts and services |
18,137 |
21,407 |
18,783 |
3.6 |
| Automotive fuels, oils and additives |
7,564 |
9,748 |
8,839 |
16.9 |
| Housewares |
2,104 |
1,937 |
2,177 |
3.5 |
| Hardware, lawn and garden products |
5,461 |
7,074 |
5,959 |
9.1 |
| Sporting and leisure goods |
4,195 |
3,037 |
4,349 |
3.7 |
| All other goods and services |
8,187 |
8,756 |
8,202 |
0.2 |
| Total |
93,557 |
96,363 |
98,593 |
5.4 |
|
Note: The Quarterly Retail Commodity Survey collects national level retail sales by commodity, from a sub-sample of businesses in the Monthly Retail Trade Survey. Quarterly data have not been adjusted for seasonality. All percentage changes are year-over-year.
|
Priszm Canadian Income Fund announces full year 2005 and fourth quarter financial results
Multi-brand locations continue to outpace single-brand locations and
acquisitions contribute to sales growth as Fund invests in improvements
to operations
TORONTO - Priszm Canadian Income Fund the operator of 479 KFC, Taco Bell, Pizza Hut and Long John Silver's restaurants in seven provinces across Canada, announced its financial results for the fourth quarter and full year ended December 31, 2005. In 2005, Priszm reinforced and added to Priszm's management team and as a result strengthened all of its operations and has entered 2006 with a strategy focused on delivering an outstanding customer experience at every single restaurant.
Priszm's annual revenue grew to $484.5 million in 2005, an increase of
$10.5 million, or 2.2 per cent over $474 million in 2004. Income from
restaurant operations in 2005 decreased to $45.2 million, from $48.8 million
in 2004.
Full year 2005 highlights:
- Completed year with 479 restaurants, including 22 multi-branded
projects (four-fold increase over 2004) and acquisition of
11 restaurants, (double the acquisitions made in 2004)
- Average multi-brand restaurant same store sales growth (SSSG) 5.7 per
cent annually in 2005, up from 3.4 per cent in 2004
- Invested $3.5 million to replace existing IT point-of-sale systems for
half of our total restaurants in 2005 to enhance speed of service,
streamline employee training and provide ongoing information stream
- Foodservice industry leader Jeff O'Neill named President and Chief
Operating Officer and management team strengthened significantly
Fourth quarter highlights:
- Revenue increased by 3.2 per cent, to $150.2 million, from
$145.6 million in fourth quarter 2004
- Multi-brand restaurant same store sales growth (SSSG) continue
positive benefits with 6.1 per cent growth over fourth quarter 2004
"Priszm expects the key changes introduced by the enhanced management
team during the year to positively impact our restaurants and employees in the
year ahead," said John I. Bitove, Chairman and Chief Executive Officer of
Priszm Canadian Income Fund. "We are pleased by the progress we made last year
in areas that put the Fund on a strong foundation for 2006, including our debt
refinancing, exceeding our target for multi-branding, the widespread
introduction of our national point-of-sale system and improved purchasing
capabilities and exciting new menu items. Through these actions, we are
re-acquainting more and more Canadians to the great taste and quality food we
serve."
The Fund declared unitholder cash distributions of $0.105 per month per
unit with an annual payout of $1.26 per unit in 2005. Priszm's annualized
distribution is expected to be $1.26 per unit for the next 12 months.
Unitholder cash distributions in 2005 represent an annualized payout ratio of
106 per cent before $1.1 million of one-time general and administrative
charges. Distributions paid since the creation of the Fund total less than
distributable cash earned and Priszm continues to generate cash flow in excess
of distributions.
"The Fund has met its distribution targets every single month since
inception," Bitove added.
Fourth quarter financial results
--------------------------------
Priszm's fourth quarter revenue increased by 3.2 per cent to
$150.2 million in 2005, up from $145.6 million in the fourth quarter of 2004.
Distributable cash for the fourth quarter of 2005 was $10.0 million,
$0.5 million higher than the comparable period in 2004.
Western Canada led the way in same store sales growth (SSSG), outpacing
the rest of Canada with positive SSSG of 3.5 per cent in the fourth quarter.
Sales in Eastern Canada decreased 3.3 per cent while Atlantic Canada was
slightly positive to last year. Total national SSSG for the quarter declined
by 1.1 per cent.
Multi-branded restaurants continue to enjoy sales success, particularly
KFC/Taco Bell locations, with SSSG of 6.1 per cent during the fourth quarter.
During the quarter, 12 existing restaurants were multi-branded with the
addition of Taco Bell menu items, bringing the total number of restaurants
multi-branded for the year to 22. The significant amount of multi-branding
activity in the fourth quarter had a negative rather than a positive impact on
full-year profit results due to start-up and training costs at the restaurant
level. Income from restaurant operations in the fourth quarter 2005 increased
5.2 per cent to $14.2 million, from $13.5 million in 2004.
2005 management summary
-----------------------
Priszm management attributes some of the challenges in 2005 to the
simultaneous introduction of several new products and an increase of marketing
spend that did not benefit the Fund as expected, as well as delays in opening
innovative multi-brand restaurants to take advantage of the key summer season.
These operational issues were rectified during the last half of 2005. "Quite
frankly, we tried to achieve too much change too quickly," added Bitove, "and
under Jeff's leadership we will continue to be Canada's restaurant leader at a
pace we can better manage."
Multi-branded locations continued to provide strong annual sales growth
of 5.7 per cent during fiscal 2005. National SSSG varied by region in 2005,
with Western Canada delivering a 4.3 per cent increase in SSSG, while Eastern
Canada decreased by 2.1 per cent from 2004 and Atlantic Canada was down by
0.5 per cent.
One new multi-branded restaurant was also opened during the fourth
quarter, for a total of three new restaurants opened during the year. Prior to
the year end, the Company entered into a non-binding letter of intent to
acquire six additional restaurants in or near the Greater Toronto Area.
Annual restaurant operating expenses amounted to $73.7 million or
15.2 per cent of sales, up from $69.9 million or 14.7 per cent of sales The
overall increase is attributed to higher costs in advertising, maintenance and
utilities plus an increase in store count resulting from acquisitions.
Management believes that the increase in advertising spending in 2005
represents a long-term investment in the promotion of its brands across the
country. As indicated by the decrease in fourth quarter advertising spend, the
Fund is making progress on balancing these expenses and bringing advertising
more in line with historic spending in 2006. In addition, the Fund's
investment of $3.5 million to replace point-of-sale systems at more than 240
restaurants in 2005 is expected to translate to enhanced speed of service,
streamlined employee training and a detailed information stream that will all
contribute to increased efficiency and organizational flexibility. This system
is planned for installation in the Quebec market in 2006.
In 2005, Jeff O'Neill, former president of Pepsi Canada and a foodservice
industry leader, was named as the Fund's President and Chief Operating
Officer. O'Neill immediately began enhancing and revitalizing all of Priszm's
operations and gathering additional outstanding managers, including:
- Jennifer Langley, Chief Marketing Officer
- Jean Trudel, Vice President, Quebec Operations
- Aly Nensi, Operations Director, Special Projects, Ontario
- Ken Ashacker, Senior Director, Strategic Planning & Marketing Insight
"In 2006, our strategic focus will be on improving operational execution
while investing more behind our core chicken products," said Jeff O'Neill,
Priszm's President and COO. "In addition, our investments will be directed to
continuing our successful, proven, multi-branding program as well as
escalating the renovation of restaurants. The Fund has realized average
revenue gains of 25 per cent to 40 per cent after multi-branding of a
location."
"I am confident that our enhanced and experienced management team has
taken the correct steps to deliver the results that Priszm unitholders
expect," said Mr. O'Neill. "Our team is building for the future with
innovative new products that broaden and build on our core offerings."
|
Restaurants, caterers and taverns - January 2006 (preliminary)
Total estimated sales of the restaurants, caterers and taverns industry reached $2.9 billion in January, a 7.2% increase over January 2005 on a year-over-year basis. (Data are neither seasonally adjusted, nor adjusted for inflation). A particularly mild winter and favourable economic conditions in January are amongst the factors that have contributed to this result.
The largest year-over-year increases, at the provincial level, were recorded in Saskatchewan (+11.9%), Alberta (+10.0%), and Quebec (+9.2%).
The year-over-year increase in sales, at the national level, was due to higher sales at limited service (+8.9%) and full service restaurants (+8.4%). These two sectors accounted for 85% of industry sales in January.
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Canada Post Announces Direct Summit for Retailers Unique Conference Dedicated to Direct Retailing in Canada
TORONTO - Canada Post announced conference dates for the Direct Summit, a conference dedicated to the advancement of the Multi-Channel Retail Industry in Canada. This year's event is scheduled for April 17-19 at the Pantages Hotel, Toronto's premier boutique hotel. Now in its third year, attendance at the two-day conference has steadily grown and has been attended by leading Canadian and US catalogue and e-commerce retailers such as LL Bean, Walt Disney Direct, Lands End, Sears Canada, HBC, Eddie Bauer, Anthropologie/Urban Outfitters, and Tiger Direct. Registration for the Direct Summit is free.
Senior level delegates converge at the Direct Summit to network and hear
from executives and industry experts such as those from the Canadian Marketing
Association, JC Williams, Publicis, ICOM, and Wunderman on effective
strategies in retail, research and marketing. The direct retail sector is
growing steadily as more retailers begin to realize that a multi-channel
retail strategy achieves incremental sales growth. In a study conducted by
Canada Post in 2004, it was found that only 35 major catalogue titles* were in
Canadian circulation versus 13,000 in the U.S. market. In 2005, that Canadian
number has grown to over 100. The Canadian direct retail market represents a
$15 billion opportunity for both Canadian and U.S. retailers.
The keynote speaker is the Marketing Hall of Legends inductee, Dr. Alan
Middleton. Dr. Middleton, a 23 year marketing and advertising veteran,
published author, and executive director of the famed Schulich School of
Business, will share his insight on what business and marketing strategies
marketers need to adopt to be successful in Canada. Keith Fagan, of Abacus
Canada, will compare the ROI of addressed direct mail plans vs. unaddressed
circulation plans. Richard McLaughlin, executive vice chair of the board of
directors for the Canadian Marketing Association, will share insight on
emerging trends in Canadian direct marketing and government influences. Rick
French, president of French/West/Vaughan, a leading U.S. public relations
firm, will lead a discussion on the evolving world of PR and how retailers can
benefit from seeing the "big picture" in a changing global media world.
This year's sessions will look at customer acquisition strategies relating
to customer segmentation, list building and strategic circulation planning and
multi-channel marketing strategies to combine with direct mail. Presentations
will also examine the challenges in building a multi-channel retail strategy
and how to align the catalogue channel into the retail mix. Organizers at
Canada Post say what sets this conference apart is the peer to peer
interaction.
"Where else can both U.S. and Canadian retailers sit down and share the
successes and challenges they each face and build the strategies that will
benefit all?" said Paulina Sazon, marketing manager for Canada Post's
Borderfree division.
"There is a distinct gap between the information and resources available
to retailers in the direct channel and the industry experts and suppliers who
serve their markets," Sazon added. "Canada Post, through the Borderfree
solution, has been instrumental in bringing them together to build the
infrastructure necessary to accelerate the direct retail sector."
In this spirit, Mountain Equipment Co-op (MEC), Canada's leading outdoor
lifestyle retailer, will share its strategies for success with other
delegates. In their presentation, Marketing Mountains - The right mix of
strategies and media can move mountains, marketing manager Selena McLachlan
and multi-channel sales and service manager, Harry Henderson, | |
