The North America Retailing Sectors : A Company and Industry Analysis (December 2007)
Mergent, December 2007, Pages: 32
This report updates the previous North American retail report, focusing on the markets in Canada and the United States
Current Environment - Key Points
- With mortgage defaults rising, banks clamped down on credit once more readily available through home equity loans and mortgage refinancing. This had an effect on consumer spending during the year
- Retail performance was below par during the third quarter of 2007 with many affected by the credit crunch and housing downturn
- However, as Christmas approached, encouraging signs appeared that consumers would maintain their level of spending, despite tightening of the credit markets
- In mid-August top retailing stocks fell as part of a broader fall in the stock market and continue declining since then
- News of a jump in inflation and an economic slowdown in the US is expected to drag down overall growth in Canada soon
- Retailers in the US and Canada continued to seek growth through mergers and acquisitions (M&A) as competition for market share and brand loyalty intensified. Through M&A, retailers are able to save costs and have more bargaining power with suppliers and manufacturers.
Industry Profile - Key Points
- Even in the face of bad news, retailers of the US and Canada continue to forge ahead with new strategies to become more profitable and efficient, while fending off ambitious competitors. - Canada is more vulnerable than other countries to a slowdown in the US economy due to its open economy, its proximity to the US and its dependence on cross-border trade. - In the first nine months of 2007, total US retail sales were valued at US$3.37 trillion, up 2.96% from US$3.27 trillion a year earlier. - In Canada, retail sales were valued at C$273.3 billion (US$275.87 billion), from January to August, up 5.6% from a year earlier
- Wholesalers are still playing an important role in the economy, especially in supplying the retail industry
- Exports and imports in the US and Canada remained active in the first ten and eight months of 2007
Market Trends and Outlook - Key Points
- From January to November 2007, toy recalls came fast and furious, with the Consumer Product Safety Commission recalling more than 70 toy brands totaling more than 25 million products
- The gaming segment is poised to be one of the fastest growing segments in the industry, projected to grow by 6.7% by 2011. - A continued trend in the humanization of pet products and services is projected to fuel further growth in the pet retail segment, with the industry projected to grow by US$40.8 billion by the end of 2007 from US$38.5 billion in 2006 and US$36.3 billion in 2005. - The increased implementation of the radio frequency identification (RFID) technology is providing benefits to retail businesses from the supply chain to the store shelves, ultimately benefiting both consumers and businesses alike
- The Canadian retail industry is expected to grow 4.9% in total retail sales 2007, to C$410.9 billion (US$414.76 billion), but less than the 6% growth level in the past two years
- The deceleration will not be as severe as in the US, where sales are expected to grow by 3.8% in 2007, compared with 7% in 2005 and 6.1% in 2006
Current Environment - US
- Sector Overview
- Sector Performance
- Leading Companies
- Merger, Acquisition and
- Alliance Activity
Current Environment - Canada
- Sector Overview
- Sector Performance
- Leading Companies
- Merger, Acquisition and
- Alliance Activity
Industry Profile - US
- Industry Size and Value
- Industry Focus
- Exports and Imports
Industry Profile - Canada
- Industry Size and Value
- Industry Focus
- Exports and Imports
Market Trends and Outlook -
US
- Toy Recalls Become More
Frequent
- Gaming Industry Is Breaking the
Speed Limit
- Pet Accessory Market Set to
Grow Further
- Gift Cards More in Style
- Market Outlook
Market Trends and Outlook -
Canada
- Retailers Start RFID Smart
Labels
- After Two Years, Canadians Still
Adore Gift Cards
- Market Outlook
Currency Conversion Table
The Scope of this Report
Key References
Comparative Data
Reports Coverage
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