Alberta holds lead in retail spending
Christmas shopping peak expected today
Mario Toneguzzi, Calgary Herald
Published: Friday, December 22, 2006
As Calgarians prepare for the busiest shopping day of the Christmas season, there comes word that Albertans continue to outpace the rest of the country by far when it comes to annual percentage growth in retail spending -- almost tripling the national average.
Statistics Canada reported Thursday that retail sales in the province have remained consistently above 15 per cent growth over the previous year for each month in 2006. The seasonally adjusted retail sales numbers for October showed the province spending 15.8 per cent more than at the same time a year ago, compared with a national average of 5.7 per cent.
Also on Thursday, Visa Canada said the festive frenzy will reach its peak today between 2 p.m. and 4 p.m. as 700,000 Albertans will spend an estimated $257 million on last-minute holiday gifts.
According to the eighth annual Visa gift-giving survey, 33 per cent of shoppers have yet to cross everyone off their list and will be out in force in hopes of finding the perfect present.
"Over the last eight years, we've found that the busiest shopping day is typically Dec. 23, but since Christmas Day falls on a Monday this year, we anticipate Canadians will try to finish their shopping on Friday," said Tania Freedman, director of corporate communications for Visa Canada.
And Albertans will be spending lots of money. Visa says average spending on holiday gifts in Alberta will amount to $1,042 compared with the national average of $930.
Rick Egelton, chief economist for the BMO Financial Group, said Christmas sales activity in Alberta will lead the nation and will be 15 to 20 per cent higher than in 2005. That compared with a national average of six per cent.
That's great news for local retailers who have been benefiting this year from burgeoning sales in the city.
Erin Hryniuk, owner of First Class Fashions in Willowpark Village, said sales for the store this year have increased by about 20 to 25 per cent from a year ago.
"We've seen sales increase, but we've seen sales increase more on the casual side," she said. "Women don't dress in suits anymore except for lawyers and people in corporate boardrooms. Women are dressing much more casual.
"A woman can come into the store and she can find something for work, something to go on a cruise. It's very diversified, which is really what enhances the product."
Her store, which opened in 1983, is dedicated to the Joseph Ribkoff line of clothing. It started with a small section about two years ago and now 1,000 square feet are dedicated to Joseph Ribkoff. "And we go from size four to size 20," she said.
Hryniuk said the store has experienced about a 30 per cent increase in sales this year in that line of clothing.
Grant Kosowan, regional director for Orange National Retail Group Inc., said massive net migration into the province and "an economy which is completely separated from almost reality in Canada" have contributed to the booming retail industry in Alberta.
Statistics Canada said retail sales in Alberta were $4.483 billion in October, down only 0.1 per cent from the September figure of $4.488 billion.
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Retail sales
(Seasonally adjusted)
Oct. 2005 to Oct. 2006
per cent change
Alberta 15.8 %
Nova Scotia 6.6 %
Saskatchewan 6.2 %
Yukon 6.1 %
British Columbia 5.7 %
Quebec 4.5 %
Prince Edward Island 4.5 %
Manitoba 4.2 %
Nunavut 3.7 %
New Brunswick 3.5 %
Ontario 3.1 %
Northwest Territories 2.5 %
Newfoundland & Labrador 1.0 %
Canada 5.7 %
Source: Statistics Canada
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