Industry Report Card: Canadian Retail And Consumer Products Sectors Face Strong Headwinds Sep 08
Standard & Poors, September 2008
Abstract
Canada's economy stalled at the beginning of 2008. Although the slowdown in the global economy and weakening demand for Canadian exports have been factors in this slowdown, domestic spending is losing some of the forward momentum it had up until now. Furthermore, labor income growth is slowing and Canadian consumers are no longer spending as freely as they once did. Instead, they are responding to upward pressure on inflation from rising food and energy prices by reining in discretionary spending. And in the business sector, especially outside of Canada's resource-based industries, rising input costs and an inability to pass those higher costs onto consumers is hindering profits. Some companies are planning to increase their investment spending as they strive to...
Companies mentioned in this report are:
- Cott Corp.
- Viterra Inc.
- Shoppers Drug Mart Corp.
- Sobeys Inc.
- George Weston Ltd.
- Loblaw Cos. Ltd.
- Metro Inc.
- Canadian Tire Corp. Ltd.
- Alimentation Couche-Tard Inc.
- Bombardier Recreational Products Inc.
- Dollarama Group LP
- MEGA Brands Inc.
- Connors Bros. Income Fund
- RONA Inc.
- KIK Custom Products Inc.
- LJVH Holdings Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Cott Corp.
- Viterra Inc.
- Shoppers Drug Mart Corp.
- Sobeys Inc.
- George Weston Ltd.
- Loblaw Cos. Ltd.
- Metro Inc.
- Canadian Tire Corp. Ltd.
- Alimentation Couche-Tard Inc.
- Bombardier Recreational Products Inc.
- Dollarama Group LP
- MEGA Brands Inc.
- Connors Bros. Income Fund
- RONA Inc.
- KIK Custom Products Inc.
- LJVH Holdings Inc.
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