Retail Trade - Service Industries Overview Series

Publication Date: March 2001

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The Industry

The retail industry is defined as the retailing of merchandise in small quantities to the general public generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise.

Sector Highlights

The retail sector is one of the most important sectors of the economy. The retail sector represented 6.4% of total gross domestic product or value-added in the economy in 2000 and with total sales exceeding $277 billion dollars.

As a source of jobs, retail is a key sector, providing 12% of employment or about 1.75 million jobs in 1999. Between 1995 and 1999 P.E.I., N.B., Ontario and Saskatchewan recorded the highest growth in retail employment.

Characteristics

A dominant characteristic of the retail sector is the small size of many of the establishments. 72% of all retail businesses employ less than 5 persons.

The industry encompassed many types of stores. There are traditional specialty stores that focus on a product line or general area such as food or shoes. Recently, large-scale stores often called category killers have come into the marketplace. However, smaller specialty stores have survived in many sectors.

Over the years, retailers have played a key role in helping consumers become comfortable with technology, beginning with the mass introduction of debit-card technology at the retail level.

The retail industry is also a key user of information and communication technologies. In 1999, the retail industry spent $4.6 billion for capital investment. Of this amount, more than half was for computer and communication equipment. From small merchants to "big-box" stores and now to electronic retailing, the Canadian retail industry has witnessed a series of fundamental changes in recent years. Its response to these changes has created a retail landscape that is as dynamic and competitive as any in the world.

The challenge for retailers will be to seamlessly integrate Internet sales with their existing channels of doing business - and to do that in a cost-effective manner that adds value for the consumer.

To get a more complete picture of the Retail Sector, do not hesitate to visit the Retail Council of Canada’s website and consult the Research section at : www.retailcouncil.org/research/

Retail Sales by Provinces

$Billions	1995	2000*	%Growth
Newfoundland	3.5	4.5	5.2
Prince Edward Island	0.9	1.2	5.9
Nova Scotia	6.5	8.5	5.5
New Brunswick	5.1	6.9	6.2
Quebec	49.3	63.6	5.2
Ontario	79.6	106.3	6.0
Manitoba	7.4	9.4	4.9
Saskatchewan	6.5	8.1	4.5
Alberta	22.7	31.9	7.0
British Columbia	31.5	35.8	2.6
Yukon	0.24	0.3	7.2
Northwest Territories	0.44	0.4	-1.9
Nunavut		0.2
Canada	213.8	277.2	5.1

Over the 1995-2000 period, many provinces recorded growth above the Canadian average of 5.1%. The strongest growth in retail sales were recorded in: