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

Community targets VQO rules amid fire safety concerns

Wildfire season is upon us in northern British Columbia, and some Burns… Continue reading

RedRover talks animal care

Nicole Forsyth, Executive Director of RedRover, spoke in the Burns Lake Public… Continue reading

Alternative arts fest at LDSS

Lakes District Secondary School held its Alternative Arts Festival on May 28.… Continue reading

Smithers man receives two-year sentence for fatal car crash

Over a year after a fatal crash, a Smithers man has been sentenced to two years plus a day in jail.

RDBN opts to join entrepreneur immigration pilot scheme

The Regional District of Bulkley-Nechako (RDBN) will back a candidate under the… Continue reading

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

B.C.’s measles vaccination program gains traction in May

More than 15,000 doses of the MMR vaccine has been administered across the province

B.C. farmers concerned Agricultural Land Reserve changes choking their livelihood

Dozens voice concerns at special meeting hosted on Vancouver Island

UPDATE: Two-year-old involved in Chilliwack pool drowning has died

Toddler was reported to not be breathing as air ambulance called out Thursday afternoon

Family frustrated Terrace dad with advanced cancer must wait weeks for treatment

‘We can see his health declining every day,’ daughter says

Most Read