Despite a tepid overall economic outlook, Canadian back to school retail sales are expected to increase by 4% from 2014 with British Columbia and Ontario leading the way. The new report by financial analysis firm Ernst & Young Global Limited also states online shopping will continue its rise due to Generation Z customers (teens ages 14-17) taking more financial control of their expenditures.
Daniel Baer, a partner and Canadian Retail and Consumer Products Sector leader said B.C. and Canada as a whole are still adjusting to increased prices due to inflation and the drop in the Canadian dollar.
“Certainly if you look over the last five years in B.C. the 2010 Olympics were definitely the high water mark. But even in the last 18 months B.C. has been one of the two strongest provinces (along with Ontario) in terms of consumer spending.”
The report outlines the upcoming back to school shopping frenzy and that Gen Z consumers are more “pragmatic” about spending due to the fact they “were raised during tough economic conditions of the post-2008 recession.”
Baer said he expects Alberta and Saskatchewan to continue to bear the brunt of cheap oil prices while B.C. continues on a more solid economic path due to our province’s booming real estate sector.
“Why this is happening can be explained most easily on a macroeconomics level. So things like low interest rates, the drop in the price of oil and less cross border shopping. But specific to B.C. is really the surge in home sales and construction and the increased consumer spending and confidence that obviously comes along with that.”
