Although some Canadian companies are updating their retail hardware and point of sale software, many organizations are facing low sales and continued economic uncertainty. New technology can ensure Canadian retail compliance.
The retail industry has been struggling in Canada. Sales dipped by 0.6 percent in June after a 1.8 percent gain in May, based on Statistics Canada data. The decrease may foreshadow weaker gross domestic product for the month than initially expected. The decline in sales was largely the result of flood in Alberta and a two-week construction labor strike in Quebec, Reuters reported. Although these events had an impact on retail sales, Ontario experienced a 1.4 drop despite high auto sales. Despite the disappointing ending to the second quarter of 2013, GDP is still expected to grow 1 percent this year.
Based on the decline in retail sales, the Canadian dollar slipped to its weakest point in six weeks. Wholesale trade and manufacturing sales also decreased in June.
Thrifty shoppers are impacting retail recovery
More foreign companies are entering the market and consumers are maintaining tight wallets, according to The Globe and Mail. This has added new challenges for growing retailers.
"Canadians are feeling pessimistic when it comes to their finances and jobs," Corrine Sandler, chief executive officer at market researcher Fresh Intelligence, told The Globe and Mail. "We are in a cautious frame of mind and see this continuing, even sliding further into the holiday season... We will be more frugal this festive season, no doubt."
Canadian shoppers who are searching for deals may turn to the Internet to complete their holiday purchases. Retailers that want to boost their end-of-the-year sales will need to provide compelling reasons for shoppers to enter their stores rather than shop online. Traditional retailers are facing heightened competition to achieve strong results against e-commerce providers.
The poor sales were not spread evenly across all retailers and industries. Some Canadian companies experienced gains in June. Retail sales were up from April and 3.1 percent higher than one year ago, The Globe and Mail said.
Retailers need to leverage new technology to gain a competitive advantage and stay profitable during difficult economic conditions. Retail accounting software can help firms manage their finances.