North America Retailing Sectors Are Being Effected By Reduced Consumer Confidence And A Rise In The Price Of Goods

October 9, 2008 11:05 AM EDT

DUBLIN, Ireland--(BUSINESS WIRE)--

Research and Markets (http://www.researchandmarkets.com/research/9d06b9/north_america_reta) has announced the addition of the "North America Retailing Sectors : A Company and Industry Analysis (July 2008)" report to their offering.

This report updates the previous North American retail report, focusing on the markets in Canada and the United States

Current Environment - Key Points

- In the US, consumers became increasingly concerned about the slowing economy, holding back on spending and cutting the performances of leading retailers

- American credit card debt grew at the fastest rate in years over the last 12 months, a fact that may signal further trouble for the banks that issue them

- Retailers fretted about the burgeoning rough year in 2008, amid fears of a recession, with reduced consumer confidence and a rise in the price of goods

- Retail stocks in the US were able to break from the downward trend in the first quarter of 2008, even though the outlook remained bleak - Top retailers in North America hinted that profits would continue to fall as consumer confidence wanes

Target (NYSE: TGT), Limited Brands (NYSE: LTD), Home Depot (NYSE: HD), Metro (TSX: MRU.A) and Rona (TSX: RON) were among the top retailers that posted a decline in quarterly results

- The effect of the US slowdown also affected Canada, curbing consumer spending and lowering the outlook for Canadian retailers

- Retailers in the US continued to seek growth through mergers and acquisitions

More than 350 transactions worth more than US$57 billion were made in 2007

Industry Profile - Key Points

- Retail sales in the US and Canada increased by 4.01% and 0.61% each during the first quarter of 2008

- Wholesalers are still playing a vital part in the economy, especially in supplying the retail industry

During the three months of 2008, wholesale inventories in the US grew to US$1.18 trillion

Meanwhile in Canada, during the first two months of the year, sales by wholesalers rose to C$86.34 billion

- Even in the face of economic troubles across North America, US and Canadian retailers continue to forge ahead with new strategies to become more profitable and efficient, while fending off ambitious competitors

- Retail employment remains high in Canada, gaining 1.18% during the first quarter of 2008

On the other hand, retail employment dwindled in the US, down by 22% during the period

- Export and import activity in Canada declined in the first three months of 2008 over the same period of 2007

In the US, the trade of retail goods and services remained active throughout the period

Market Trends and Outlook - Key Points

- More and more US retailers are filing for bankruptcy, with the numbers expected to rise and margins thinning for those left behind

- While gift cards continue to grow in popularity, consumers are finding that the gift cards of retailers going out of business are worthless

- E-commerce is one of the few bright spots for retailing

In a year in which retail industry sales are expected to experience sluggish growth, Americans are continuing to flock to the internet for clothing, computers and even cars

- Parents continue to be nervous about buying their children toys as recalls become more regular

- From Wall Street's perspective, the retail sector is not the place to be in 2008, with consumers facing numerous economic obstacles, including rising fuel prices, accelerating food inflation, an ongoing slide in real estate prices, a weakening job market and continued tightening in the credit market

- With more Canadian households having access to the internet, Canadian retailers continue to choose the convenience of shopping online.

Key Topics Covered:

Current Environment - US - Sector Overview - Sector Performance - Leading Companies - Merger, Acquisition and Alliance Activity Current Environment - Canada - Sector Overview - Sector Performance - Leading Canadian Retailers Industry Profile - US - Industry Size and Value - Retail Segment - Wholesale Segment - General Merchandise and Miscellaneous Retailers - Food and Beverage - Pharmacies, Personal Care and Clothing and Accessories Stores - Home Improvement and Building Supplies - Exports and Imports Industry Profile - Canada - Industry Size and Value - Retail Segment - Wholesale Segment - Automotive Segment - Furnishing, Electronics, Building and Home Supplies - General Merchandise and Miscellaneous Retailers - Pharmacies, Personal Care and Clothing and Accessories Stores - Food and Beverages - Exports and Imports Market Trends and Outlook - US - Retail Bankruptcy Starts to Pick Up - Gift Cards: A Bleak Future? - Shoppers Continue to Shop Online - Toys Continue to Scare Parents - Market Outlook Market Trends and Outlook - Canada - Canadian Consumers Continue to Shop Online - Big Box Stores May Start to Wane - Market Outlook Currency Conversion Table The Scope of This Report Key References Comparative Data Reports Coverage

    For more information visit
http://www.researchandmarkets.com/research/9d06b9/north_america_reta

Source: Research and Markets

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