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

Just Posted

Graffiti Days 2019 a huge success

Hundreds of cars and spectators — including a History channel TV personality — turned out for the event

Bus company fears for future if another licence issued for Interior routes

Adventure Charters waiting to see if Ebus BC is approved for Prince George-Kamloops run

Sea Cadets wind up another year with Ceremonial Review

Corps is fundraising for a trip to Halifax, Nova Scotia in 2020

WorkBC helping break down barriers to employment

Office offers a wide range of services to help people find sustainable careers

Local News Briefs: Get garden ideas with Ashcroft tour

The Rivertown Players are back, invasive plant management, reduced tipping fees, and more

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

Victoria double murder trial: Blood splatter analyst found no shoe prints on scene

RCMP analyst testifies to smears, fingermarks, ‘swipe and wipe’ patterns around apartment

B.C. teen killed by falling tree near Victoria

Second youth also injured in freak incident during field trip at Camp Barnard near Sooke

Elias Pettersson wins Calder Trophy as NHL’s top rookie

Vancouver forward first Canuck to win award since Pavel Bure in 1992

FVRD chair calls B.C. incineration plan for Philippines waste ‘disturbing’

Metro Vancouver ‘uniquely capable’ of safely disposing of waste coming back to Canada, say officials

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Channel your inner pirate in epic Canada-wide treasure hunt

200 treasure chests hidden among trails and waterways, lots of prizes to be claimed

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

Scorpion gives birth after hitching ride in B.C. woman’s luggage

A Vancouver woman inadvertently brought the animal home from a trip to Cuba

Most Read