Shelfspace.ca Retail Outlook

Family Day a juggling act for BC’s 30,000 retailers

Fri, 01 Jun 2012 14:33:52 GMT

These days there is an expectation that retailers will be open just about every day of the year, and on any given day of the year, BC retailers are trying to keep several balls in the air. Throw Family Day in and the juggling act becomes even more challenging for BC’s largest private sector employer – more than 300,000 people work in retail in this province.

Family Day sounds great for workplaces that will be closed on Family Day—for example, all levels of government and companies that do not sell goods and services directly to consumers and tourists. For service companies, Family Day presents a mixed bag of choices. Do I stay open to serve my customers, or take advantage of a day off with the family? If I stay open in order to be competitive, will I lose money because of the additional cost?

When then Liberal Party leadership hopeful Christy Clark announced her intention to introduce Family Day, it may have seemed like a good idea, but she chose not to consult with employers. Most retailers believe Family Day will increase the cost of doing business, particularly now that Family Day isn’t aligned with other provinces in Canada or with the US holiday, and will not take place in the third week of February. That being said, the new holiday will impact retailers in different ways.

Retailers can be divided into three basic camps: those who will be open by choice, those who will be open against their will, and those who will be closed. Close to 40% of all our independent members report that they will be closed on Family Day either because they support the policy, or because they know from experience that it is too costly to be open on a statutory holiday.

The majority of our members who plan to be open report that Family Day will generate additional cost, and that any incremental sales generated will not cover these costs. This is because statutory holiday regulations require employers to pay eligible employees who work on a statutory holiday, 2 ½ times their regular pay (1 ½ time regular pay, plus one day off in lieu for working on a statutory holiday).

The most negative reaction to Family Day is from merchants whose hours are dictated by the terms of their lease with their shopping center landlords. If the landlord decides to stay open which they will in order to compete in the local market and to entice Canadian shoppers to stay at home rather than spend their dollars cross-border-- their tenants will be forced to stay open.

Retailers believe there are ways to mitigate the negative impact of Family Day. We have written to the Premier, and the Labour and Jobs ministers, urging that Family Day be a tax exempt day/weekend. This will provide a tax holiday for retailers and their customers in order to provide a catalyst to encourage sales in the normally sluggish first quarter. We are also urging government to undertake a formal and comprehensive review of all statutory holidays in BC to examine the requirements for retail employees’ compensation for on statutory holidays.

Many retail pundits believe that successful retailers need to be adept at multi-channel retailing (in-store, on-line, mobile), while providing extraordinary in-store experiences to customers. The introduction of Family Day means retailers will now have to hone their juggling skills as they try to remain profitable against a backdrop of a multitude of challenges. These include: a lingering global recession, cross border shopping, a 25% spike in minimum wage in BC, multinational manufacturers charging higher prices to Canadian retailers, inflation, rising transportation costs, the spectre of rising interest rates, import duties, competitive pressures, the significant cost of transitioning back to a dual tax system. Family Day may be one ball too many for retailers to keep in the air.

Message from Mark Startup, Shelfspace CEO

Thu, 15 Dec 2011 14:38:03 GMT

As I look back on the events of 2011 and my 30-plus years in the retail industry, I can’t think of a time when retailers have been subjected to so much change, with the knowledge that change will occur even more rapidly in 2012.

In 2012, the Shelfspace community will celebrate its 95th anniversary serving retailers. Yes, it was almost 95 years ago that the Retail Merchants’ Association of Canada was formed by a Special Act of Parliament, and the association has been championing the interests of independent retailers ever since. While we have always been known for advocating aggressively for retailers, it wasn’t until we introduced Canada’s first innovative "group" property insurance program in the 1950s that the association discovered its most compelling and relevant purpose … to help members save money by offering cost-saving services.

Since the 50s our association has often been the first to develop new and creative cost-savers, including: credit card processing, freight, long-distance, store insurance, group benefits, gasoline, travel, accommodation and more. Our association grew rapidly during this time of healthy growth in the Western Canadian economy. At the same time, our members benefitted from a strong voice to fight increasing credit/debit card transaction fees, high WCB rates, unfair property tax rates, costly labour policies and proposed new parking taxes. In one way or another, Shelfspace has been there to speak up for BC and Alberta retailers. Retailers also value the high quality training programs, events and conferences offered by Shelfspace.

While we can be proud of our accomplishments during the past nine decades, the retail industry will need an even stronger association to navigate the complex and challenging issues facing retailers in the years ahead. At the federal level, cross border issues, the evolution of the payments industry, sustainability policies, government red-tape, and health and safety regulations will have a profound effect on retailers. The rapid evolution of online retailing, mobile technology and social marketing provide retailers with both excellent opportunities and complex challenges. The retail industry will need a well-resourced, innovative and entrepreneurial association to provide conferences, workshops, and information that will help retailers understand the risks and rewards these challenges hold in store.

To ensure there will be a strong and effective association for the next generation of retail entrepreneurs, the Shelfspace board of directors has approved a new strategy to seek strategic partnerships. Our goal is to make our cost-saving programs more competitive and ensure that independent retailers have a stronger voice on government policy at the local, provincial and federal levels.

As 2011 comes to an end, Shelfspace is negotiating with national associations and suppliers to develop new high-value services and programs in 2012. Not only do we intend to make our cost-saving services better by accessing larger buying groups, we will continue to advocate for retailers on employment standards, labour code, property tax increases, parking tax increases, HST and changes to statutory holidays.

Shelfspace is acutely aware of the challenges you face as an independent retailer. In addition to enhancing the value of your membership, we have introduced new incentives to reduce the cost of your annual fee. Please take the opportunity to reduce your membership fee in 2012 by referring new members and by taking advantage of our new early renewal discounts.

I would like to wish all retailers in BC and Alberta a prosperous and enjoyable holiday season and continued success in 2012!

Shopping for Christmas gifts an act of goodness

Tue, 06 Dec 2011 11:01:52 GMT

Source: Vancouver Sun

Now that the Occupy Wall Street movement has dissipated after antagonizing manycitizens, the folks who inflicted it on us have a new target: Christmas.

Adbusters, the Vancouver-based anti-capitalist publication that claims responsibility for OWS, is now attacking the tradition of gift-giving at Christmas. No one should be surprised; Adbusters promoted a "Cancel Christmas" campaign in 1991.

Occupy Xmas, as the latest campaign has been dubbed, is a spinoff from Adbusters' equally malevolent "Buy Nothing Day," which targeted Black Friday, the busiest day of the year for retailers in the United States and increasingly Canada, and the unofficial launch of the Christmas shopping season.

But what's on display is not rampant consumerism and greed but rather generosity and goodness. Many of those shoppers are buying for others.

The ceremonial exchange of gifts is as old as human society itself, and takes on special significance at Christmas because the Bible tells us that three wise men brought gifts of gold, frankincense and myrrh, resins valued for their fragrance, to the Christ child. Perhaps this explains why jewelry and perfume are popular gifts at Christmas.

As of the last census, a majority of Canadians were Christian, with 72 per cent identifying themselves as either Catholic or Protestant. Giving gifts for many, then, is an act of religious symbolism and for the rest of us, an expression of appreciation and love. Those who denigrate this ageless custom deny their own humanity and ours.

Before the Industrial Revolution, gifts were likely to be raised (livestock), grown (grain, fruit and vegetables) or handmade (knitted clothing, wood carving), but there is no use pretending we live as our ancestors did 150 years ago.

Today, we buy gifts made by others and sold in shops, and there's nothing wrong with that.

In fact, buying gifts for Christmas does much good. In the sales surge of these last few weeks of the year, retailers can turn around losses and stave off bankruptcy. And that means they'll be able to continue to employ workers. About 1.8 million Canadians work in retail jobs; that's more than in manufacturing. With more customers and more sales, retail employees who work on commissions will make more money, so they can buy gifts for their family and friends.

Furthermore, to respond to the Christmas rush, retailers will hire part-time help, mainly students who need toearn enough to cover expenses over the next school term.

All of this has broader implications for the overall economy. Retail trade amounts to roughly $450 billion a year, or more than a third of total gross domestic product (although only six percent of GDP on a value added basis) and is therefore crucial to Canada's continued prosperity and high standard of living. A big Christmas boost of consumer spending can goose GDP growth in the fourth quarter and make a mediocre 2011 a little brighter.

The economic impact doesn't stop there. A Christmas sales slump that would cheer the Occupy Xmas simpletons would result in layoffs soon after in developing countries where much of the electronics, toys and clothing we buy are manufactured. A post-Christmas inventory overhang from poor sales could mean hardship for people who lack the social safety net Occupiers in Canada enjoy.

Consumerism is not evil. When Venetian traveller Marco Polo stumbled upon the great mall of Hangzhou more than seven centuries ago, he wasn't appalled by what he saw but amazed and delighted by the shops and stalls "in which every sort of craft is practised and every sort of luxury is on sale, including spices, gems, and pearls."

Marco Polo provides an ancient reminder that the goods and services we buy provide a livelihood for the artists, craftsmen, longshoremen, truck drivers, warehouse handlers, sales clerks, computer programmers, factory workers, managers, consultants and others in a host of trades and professions, who are depending on us to do what we should be doing right now: shopping for Christmas gifts.

Canada axes $32 million in manufacturing tariffs

Mon, 28 Nov 2011 10:57:53 GMT

OTTAWA — Finance Minister Jim Flaherty announced Sunday the elimination of 70 tariffs expected to save Canadian businesses $32 million annually.

The tariff relief will affect a range of sectors, but is focused on the country’s manufacturing industry. Food processing, apparel, footwear and electrical equipment are among the areas that will benefit from move to reduce production costs and enhance Canadian competitiveness in domestic and foreign markets, according to a statement from the Department of Finance.

“Things like fasteners in clothing, and trailer parts and a series of things that were tariffable before, but it’s now . . . an impediment to Canadian business (and) Canadian manufacturing,” Flaherty said on CTV’s political program Question Period.

“We believe in free trade in Canada. We are a free trading nation — that is the source of our strength, our quality of life, our economic strength. Some of these old-fashioned tariffs get in the way so we’re getting rid of them,” Flaherty explained, adding that this initiative moves toward establishing a tariff-free zone for Canadian manufacturers.

Under the Economic Action Plan, the government has eliminated all tariffs on imported machinery and equipment and manufacturing inputs in a bid to make Canada a tariff-free zone for industrial manufacturers by 2015.

The government said that since 2009, it has eliminated more than 1,800 tariff items, saving Canadian businesses more than $435 million in customs duties annually.

(article from the Vancouver Sun, written by Amy Chung).

Are Canadians becoming more like Americans?

Tue, 22 Nov 2011 11:19:17 GMT

- Op-Ed by Mark Startup, President & CEO of Shelfspace

With Black Friday approaching, I’ve been thinking about what makes Canada different from the U.S. We share the longest “unprotected” border in the world and I have often heard that while Canadians look and talk like Americans, we are often defined by what makes us different from Americans rather than by what we actually are.

One thing that most certainly makes Canada and U.S.different is the speed with which the Canadian economy recovered from the economic meltdown of 2008. Isn’t it ironic that while many Canadians complain about the GST/HST, some economists believe that the U.S. should introduce a national consumption tax in order the help finance its recovery effort?

When it comes to Black Friday, many Canadians want to be just like Americans. For those who don’t know the history of Black Friday, it is the first Friday after the U.S. Thanksgiving, and this year it falls on November 25^th. Black Friday symbolizes the day that U.S. consumers get serious about their Christmas purchases, thus turning the bottom line of U.S. retailers from money-losing red to profit-making black.

With all of the attention on Black Friday, a recent holiday shopping survey by Deloitte revealed that there will be a 15% decrease in the numberof Vancouverites who will cross border shop this holiday season. At the same time, British Columbians are spending more at home each year. If year-to-date retail sales growth of 1.5% continues, a record $60 billion will be spent in 2011 on goods and services in BC, confirming that BC retailers are competitive and are providing consumers with the goods they need.

I believe an interesting new trend has emerged in the last few years. On the one hand Canadian consumers want to celebrate this U.S. tradition by cross-border shopping, and on the other hand a growing number of retailers in Canada are offering special Black Friday promotions in a clever effort to keep their customers at home. While I would rather see a made-in-Canada way to entice Canadian consumers to shop at home, there is one simple question that drives both consumers and retailers alike: “Why does it cost more to purchase goods in Canada compared to the U.S.?”

When it comes to price parity with the U.S., I want Canada to become just like our American friends. I wish it was as simple as the consumers association would have you believe; that the reason for higher prices in Canada is that retailers refuse to pass on the savings when the Canadian dollar is near par with the U.S. dollar. Unfortunately, it’s not that simple and here’s why.

We all know that things are cheaper by the dozen. American retailers enjoy economies of scale that are the envy of Canadian retailers. Notonly can they negotiate lower prices from North American and off-shore manufactures due to their huge buying power, shipping goods to 310 million Americans in dense population clusters is far more efficient and less costly when compared to shipping goods to 34 million Canadians (about the same population as California) spread thinly across the world’s longest undefended border .

To make it even more costly (and frustrating for retailers in Western Canada), many U.S. manufacturers and distributors refuse to take direct orders from Canadian retailers and instead force them to buy from their mostly centrally-located Canadian distributers.

If you want lower prices for Canadian goods, cross border shopping is not the solution. Just ask Whatcom County and the City of Bellingham who sued Washington State in response to its decision to exempt British Columbians and Ontarians from paying the state sales tax after the HST was introduced. How would they pay for roads and schools if they lost this source of revenue? I suspect other business taxes would have to increase inorder to make up the lost revenue and the same logic holds up in Canada. The exodus of tax dollars from Canada to the U.S. leaves fewer dollars available to pay for our health care professionals and teachers.

Policy makers could make an enormous contribution to levelling the playing field for retailers by reducing or eliminating tariffs, duties, bilingual labelling requirements and metric labelling rules. Why do we continue to charge punishingly high tariffs and duties to protect Canadian industries that long ago lost their ability to compete with off shore manufacturers?

For Canadian consumers who plan to do a little cross border shopping this Black Friday, please also join Canadian retailers and write a letter to your Member of Parliament, The Finance Minister and the Prime Minister asking them to reduce sales taxes, commercial property tax and the employer’s portion of payroll taxes, all of which are ultimately included in the price of goods.

Adopt-A-School

Mon, 21 Nov 2011 10:05:24 GMT

Shelfspace is urging the retail community to get behind the Vancouver Sun's 'Adopt-A-School' Program. In an effort to provide support to many of the inner city schools in need in the B.C. area, Shelfspace is asking retailers to adopt a school in their local area by providing what assistance they can with donations of goods or cash.

Below is a list of school's participating in the Adopt-A-School program. Each school has identified areas of need which they are asking the community for donations. There is a clear need for provision of winter clothing and footwear, as well as healthy snack items. For information on how to donate items, email adoptaschool@vancouversun.com or call Adopt-A-School coordinator Kathy Anderson at 604-605-2654.

If you would like to make a cash donation, you can contribute online at https://vancouverfoundation.ca/vansunkids/donateonline.asp

BURNABY

Edmonds Community School

7651 18th Ave., Burnaby

Phone: (604) 664-8683

Contact: Principal Dave Starr

Needs: Warm clothes and boots, gift certificates for food.

Bigger needs: Finding companies who are willing to take a chance on refugee parent by giving them decent jobs. Helping parents find affordable daycare so they can go back to school and organizations that would be willing to sponsor kids to play organized sports or go to dance and music lessons.

Morley Community School

7355 Morley St., Burnaby

Phone: (604) 664-8774

Needs: Shoes, coats, and boots are the greatest need. Also breakfast items, snacks and clothes.

Stride Community School

7014 Stride Ave, Burnaby

Phone: (604) 664-8854.

Needs: Snacks, gloves, scarves and hats for the winter.

Windsor Elementary

6166 Imperial St., Burnaby

Phone: (604) 664-8886

Needs: Warm waterproof boots, gloves and hats, Food for afterschool programs (nut free granola bars, fresh fruit), School garden tools, seeds and soil (for spring planting).

Byrne Creek

7777 18th St., Burnaby

Phone: (604) 664-8299

Needs: warm coats, winter boots, scarves, mittens, and socks. High School aged youth clothing is always much appreciated, as well as sporting gear such as proper basketball shoes. Funding for the breakfast program and After School Snack for Sports Program. Food donations in order to sustain this program (money, or food donations such as granola bars and juice boxes or fruit). Care packages – ie tooth brushes, tooth paste, deodorant, soap, shampoo.

COQUITLAM

Ranch Park Elementary

2701 Spuraway Ave., Coquitlam

Contact: Don Hutchins, Principal

Phone: (604) 464-6684

Email: dhutchinson@sd43.bc.ca

Located in central coquitlam, offers many programs before and after school. Mostly middle class neighbourhood with some lower income families.

Needs: One of our families lives in the nearby co-op housing development-two children who live with their mother. The children are very polite and empathic. Mom is a very young lady with many mental and social issues. She does her best with what she has but has a difficult time taking care of some of the childrens' needs. The kids arrive at school in filthy improper sized clothing, prepackaged food for lunch and with questionable hygiene. Grandmother, who lives in Granisle, helps the family every September to get the kids ready for school, medical/dental visits etc. The problem is that she is only there for a short time. The kids seldom, if ever, are invited to their peers birthday parties for obvious reasons. They are often waiting on the school grounds until 4:00 each day to be picked up. The daughter, eldest of the siblings (7yrs), is saving her money to buy a bag of cement to make her own playhouse. It would be very special to give these kids some of their own new toys, new clothing and mom some support with the everyday job as a parent. Support to attend the local day care after school would also be beneficial.

LANGLEY

Douglas Park Community Elementary

5409 206 St., Langley

Phone: (604) 533-4491.

Needs: snacks and general school supplies/stationery.

Parkside Centennial Elementary School

3300 270th St., Aldergrove

Phone: (604) 856-7775

Needs: help in the area of after school and Summer Programs, and literacy.

NANAIMO

Bayview Elementary School

140 VIEW ST, Nanaimo

Contact: Principal - Mrs Diane Mcgonigle

Phone: (250) 754-3231

dmcgonigle@sd68.bc.ca

Needs: runners, winter coats, winter boots, and gloves and toques. We provide some of our kids with bike helmets so they can arrive safely when they ride their bike to school. Occasional need for optical glasses.

RICHMOND

Mitchell Elementary

12091 Cambie Rd., Richmond

Phone: (604) 668-6225

Needs: healthy food items and warm jackets and footwear.

SURREY

WE Kinvig Elementary

KB Woodward Elementary

Old Yale Road Elementary

Hjorth Elementary

Mary Jane Shannon Elementary

Georges Vanier Elementary

Lena Shaw Elementary

Bear Creek Elementary

Contact : Liane Ricou

Phone: (604) 595-6075

Email: Ricou_l@sd36.bc.ca

Needs: 8 sister inner city schools in Surrey would like to start a unified breakfast program to address the needs of students and the root causes of weak academic achievement and poor attendance. Secondary priorities for our students, other than food, are clothing particularly winter clothing and coats, shoes and boots, funds to support participation in community sports/events and money to purchase bus passes

Kwantlen Park Secondary

10441 132 St., Surrey

Phone: (604) 588-6934

Needs: donations of transit passes, warm clothing, and food.

Cindrich Elementary

13455 90th Ave., Surrey

Contact: Karen McFarlane, Principal

Phone: (604) 590-3211.

The school is organizing a Christmas Hamper Committee this year. The Hamper committee have identified about 20 families who could benefit from support this Christmas.

Needs: Gift cards for Super Store or WalMart - this would enable parents to go out and buy Christmas presents for their children as well as any food they may need. Also winter jackets, boots, snow pants, scarves and mitts would be helpful (we are looking for brand new so parents can use them as gifts). Also brand new toys or items that would be appropriate for children or teens are welcome. Transit passes would also be very useful for many families.

VANCOUVER

Britannia Elementary School

1110 Cotton Drive, Vancouver

Phone: (604) 713-4497

Needs: a long-term funder for the Homework Club tutoring program, updated computers for students to do research and complete assignments, donations of fresh fruit, bread, peanut butter, jam and Nutella – our mainstay snacks – school supplies.

Grandview/Queen Victoria Annex

1850 E. 3rd Ave. Vancouver

Phone: (604) 713-4699

Needs: many of the students come from lower income families whom face homelessness, struggle with finding adequate housing and providing fresh produce for their families. Gift certificates for food.

Lord Roberts Elementary

1100 Bidwell St., Vancouver

Phone (604) 713-5055

Contact: Karen Maher.

Needs: high tech learning tools to help the 47 learning disabled students attending the school. Recent research has shown the iPad as a valuable education tool to assist children with special needs that prevent them from properly communicating, so the school would like to provide some tablets to be shared between the children.

Strathcona

592 EAST Pender, Vancouver

Phone: 604 713-4630

Needs: Books, educational films, learning tools