Santa is still coming to town this year for Canada’s retailers, but with a lighter sack than last year, according to a new report from BMO Capital Markets Economics.
Sal Guatieri, senior economist, BMO Capital Markets, said, “While concerns about a global recession, cross-border shopping and potentially tapped-out consumers might be warranted, Canada’s retailers should still experience an increase in sales this holiday season.”
“Low interest rates, relatively low unemployment and steadier gasoline and food costs will keep the Grinch away. While household debt remains high, not all households are overstretched.”
The report predicted that retail sales receipts, excluding auto and gasoline sales, should increase about 2.5% year-over-year in November and December.
“Although slower than last holiday season’s increase of 3.1%, that’s better than the downturn-affected years of 2009 and 2008,” noted Guateri. “We expect sellers of necessities – such as drugstores and auto mechanics – and services to outperform.”
Jennifer Harrison
@JHarrisonBIV