This document summarizes Canadian retail sales data for January 2019. It provides an overview of total retail sales by segment and province. It also discusses trends in e-commerce, augment reality applications, retail closures and bankruptcies in 2018. The author analyzes what happened in the retail industry in 2018 and predicts that retailers will continue expanding e-commerce and restructuring operations in response to economic factors in 2019.

1. Retail Sales – Canada –
January 2019
Paul Young CPA, CGA
March 22, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• SME – Business Strategy and Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Total Retail Sales by Segment
• Total Retail Sales by Province
• Ecommerce
• Augment Reality and Retail
• Retail closures and bankruptcies
• What happen in 2018
• What’s next

4. Retail Sales by Segment
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190322/dq190322b-
eng.htm

5. Retail Sales by Province
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190322/dq190322b-
eng.htm

6. E-Commerce
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190222/dq190222a-
eng.htm

7. Employment vs Sales
Source – Stats Canada

8. 8
Augment Reality / IKEA App

9. 9
Augment Reality / Clothing App

10. 10
Augment Reality – Home Renovations App

11. Loblaws / Phone App for scanning purchases
• Scanning application as part of improving the shopping experience.
Source -https://www.cbc.ca/news/business/loblaws-walmart-shop-
and-scan-technology-1.4912024?cmp=rss

12. Restaurant Automation
Source - https://www.canadianmanufacturing.com/manufacturing/robot-servers-and-3d-menus-whats-on-tap-at-the-restaurant-of-the-future-229415/
Patrons enter a cafe and pass by a hologram of coffee pouring from a carafe into a cup. They scroll
through a three-dimensional menu and see exactly what each dish will look like to help them decide
what to order. A small robot, arms fixed to a tray, delivers the meal to the table and says “Your food
is here.”
That is what the restaurant of the not-too-distant future looks like, say those developing the
technology, which they argue can boost company profits and lower labour costs.
But so far, only a few eateries in Canada have embraced robotics and other high-tech offerings, and
more owners may be hesitant to do so due to high costs in a low-margin industry.

13. Retail Closing and Bankruptcies
• Hugo Boss ‘Mink Mile’ Canadian Flagship to Close, J. Crew CF Toronto Eaton Centre to Close, Enda B in
Vancouver Shuts Operations, Boboli Vancouver to Close Men’s Business, Walmart Closing Store at Toronto’s
Cedarbrae Mall, Hopscotch Chain in Receivership
• Source - https://www.retail-insider.com/retail-insider/2019/1/several-prominent-store-closures-in-canada-this-month

14. Payless Shoe Stores closing
Source - https://www.bnnbloomberg.ca/payless-prepares-second-bankruptcy-with-store-closures-1.1211459

15. What happen in 2018 for Retail
• Pot Stores open
• Store closures (Jean Machine and Town Shoes)
• Store openings (Nordstrom Rack, Levis Flagship, Chloé, ASICS, Sport Chek Kids, Casper, William Ashley, and more all opened stores in Canada.
• Hardware (i.e. eCommerce, robotics, etc.)
• Store Expansion (Miniso announced plans to add 500 stores in Canada over the next three years. Uniqlo Canada added four new locations in the fall of
2018. Hudson’s Bay opened its first new store in Canada in 15 years in Montreal. Canada Goose announced three new stores in North America — two in
Canada and one in the United States.
• Canadian grocery sales stopped growing — the start of a grocery “bloodbath”?
– “The bloodbath is here,” wrote Sylvain Charlebois, the dean of the faculty of management at Dalhousie University and a prominent expert on food retail, in an email to media
in July of 2018.
– The “bloodbath” in question was a drop in sales at Canadian grocers — enough to potentially put thousands out of work and close dozens of stores.
– According to Statistics Canada, sales at supermarkets and grocery stores dropped 3.1% in May of 2018, the fourth decline in the past five months.
• Grocery Delivery - 2018 saw the start of on-demand grocery delivery and expansion of click-and-collect services.
– In 2018, nearly all major grocers added grocery delivery services to their offerings, including Costco Canada.
– Walmart Canada announced plans to offer one-hour delivery through a partnership with InstaCart.
– Loblaw Companies Limited planned to expand its pick-up services to 500 more locations in 2018.
– Sobeys announced a partnership with Ocado Group.
http://storesupport.ca/canadian-retail-news-of-2018/

16. What’s next for Retailers November 2018 and
beyond
• More and more retailers will expand their eCommerce footprint. Areas of focus
will improve the customer shopping experience either via the website or
through the use of Augment Reality
• Consumers pocketbooks will be impacted by CPP hikes
(https://torontosun.com/news/national/92-of-middle-class-families-face-tax-
hike-over-2200-beginning-in-2019-fraser-institute) and Carbon tax
(https://www.cbc.ca/news/canada/new-brunswick/carbon-tax-federal-
government-province-1.4875848)
• More and more retailers will revisit their operations, i.e. # of stores, locations as
part of looking at more efficient ways to improve their hub and spoke delivery
of their goods and services.