Here and there

Three retailers control a large share of the Canadian retail market according to a report by the Centre for Study of Commercial Activity up to 2008.

Only a small number of Canadian retailers control more than twenty per cent of the market. The top three are the Weston Group (Loblaws, Real Canadian Superstore), Walmart Inc. (Walmart, Sam’s Club, Supercentres) and Sobeys Group (Thrifty’s, Sobeys, IGA). These players have a very high impact on the range of goods and services that are available to you and I.

The researchers also found that Canadian based conglomerates accounted for approximately sixty per cent of the retail sales. The remaining forty per cent were controlled by foreign investment and mostly by companies based in the U.S. and that is expected to rise.

The news isn’t all bad for domestic companies because we have some companies that have experienced very good growth and B.C.’s Lululemon is a good example having nearly doubled its sales in the last three years.

Bubbling under the top three are Costco, Shoppers Drug Mart, The Bay group of companies, Sears, Home Depot, Safeway, Rona and Canadian Tire.

What is going to be interesting is the next study, which will include last year and the recession and we’ll see who challenged the retail environment best in the Canadian retail market.

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I like the idea that some folks are promoting in Penticton for a local co-op radio station. It is quite a project and they had seventy people out to the last meeting. Co-op radio was always reserved for colleges and universities. Now there is less expensive technology available to the small guys and community radio is more available to cities. It is going to be interesting to see how they proceed with their idea for a different kind of radio.

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The clothing line Joe Fresh has been an exciting addition to the clothing line at the Real Canadian Superstores across the country. I remember writing a piece last year on how the brand was introduced into the marketplace in 2006. The introduction of the line on TV was one of the best advertising campaigns we have seen in years and the product on the shelves was outstanding, cheap–chic as they say, but well done in every way. The designs from Joseph Mimran the co-founder of Club Monaco have already created an enviable position for the Joe Fresh line, as it has become Canada’s second largest clothing label. The company is heading to one billion dollars in sales from the clothing cosmetics line.

The retailer has a smash hit on its hands. I know when I walked through the department with the Mrs. before Christmas I was very impressed with the style and quality of the goods being offered. Their winter jacket line was outstanding.
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You’re upset with the costs of shipping in Canada. A lot of people I understand are taking it a step further and sending their packages through another source that takes them across the border and mails them for you. So if you want to send a parcel to Toronto for instance this service would take the parcels to the closest border point and mail them and the parcel would arrive in Toronto and cost you less. This is happening in Toronto now and I suppose some entrepreneur will be doing the same thing here by taking mail to Oroville, Wash.

Why you ask is this happening? The reason is that it is cheaper to send parcels through the States to addresses in Canada. The savings come from our mail rates and the U.S. rates. They have one price for all of Canada while the Canadian service charges by distance.

I don’t know if this will work from here because someone has to transport the mail to the border. In Toronto those delivery charges are $1 a package and you still save money.

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Tax season is beginning and that means British Columbians are trying to make sense of tax changes and figure out how to handle their RRSPs. To help, the Chartered Accountants of BC have put together a list of handy RRSP and tax tips. This annual tip list is based on the latest RRSP and tax information.

The tips are useful for preparing RRSP/tax stories or a daily fact series, and are available at:

RRSP & Tax Tips 2009

Local CAs are also available for interviews on tax and personal finance issues.