Statistics Canada declares retail sales fortify in 2004, as consumers took advantage of easier credit, growing employment and rising personal disposable income to fix up their homes and buy some new furniture.
Store retailers reported operating revenues of $370.7 billion, a 4.2 percent increase from 2003. This was a faster pace than the gain of 3.5 percent in 2003. Retailers were buffeted during 2003 by events such as the SARS outbreak and the power blackout in Ontario.
In 2004, revenues, profit margins and operating profit all rose. There was also a strong housing and renovation market coupled with rising personal disposable income and lower interest rates, both of which drove consumer spending on retail goods.
Revenues rose among all major retail trading groups, except for computer and software stores, where they were off 4.7 percent.
The strongest growth occurred in stores with direct links to the housing and renovation markets. Revenues for home furnishing stores surged 11.6 percent, while those for home centres and hardware stores rose 10.2 percent.
Retail chain stores accounted for two-fifths of total revenue Retail stores can be divided into two broad categories: chains and independents.
Operating revenue in retail chain stores rose 6.3 percent over 2003, while gross margins (the difference between total operating revenues and the cost of goods sold) rose 5.6 percent. Operating revenue among the independents increased 2.7 percent, with gross margins up 5.3 percent.
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