Retail Council Canada says industry trying to adapt to needs of workers, customers

After a few rough years, Canada’s retail industry was able to recover in 2022.

Retail sales were especially strong throughout the holiday season.

But John Graham, director of government relations of the prairie region of the Retail Council Canada, says the industry might not be completely out of the woods yet.

“When you look at sales, year over year, they are up,” Graham said. “In part, though, you have to factor in inflation. Labour costs are up, shipping costs are up, (and) the costs of materials being ordered and stocked in stores are up.”

Graham said the pricing of some items have been affected by this.

Though the costs of business have gone up for retailers, Graham said the sector has been able to bounce back from the supply chain disruptions that plagued it during the height of the pandemic, specifically during 2021 and even some parts of 2022.

“Sales are back for items that were (in short) supply perhaps a year ago at this time,” he said. “That’s normalized now.”

Changing with the times

Going forward, the sector will have to contend with a changing landscape.

“In the new year we often see difficult decisions made by retailers that either have to reformat or close locations or brands altogether,” Graham said.

“It’s a very competitive industry where brick and mortar competes with global online stores and it competes with neighbours up and down the street.”

The COVID-19 pandemic led to a huge increase in online shopping and Graham explained that small and mid-sized businesses might not always have been able to provide online services that were as efficient as those of some larger brands.

Graham said retailers will have to find a way to continue to get people back in stores if they want to survive long term, to an extent even greater than they had to five years ago or so.

“Trying to be as innovative as possible, stock the right volume and types of products as well as get them at the cost (and then) deliver them at the cost that consumers are prepared to pay is a difficult science and art,” he said.

Attracting workers

As of Jan. 6, Saskatchewan boasted a 3.7 per cent unemployment rate, which ranks second among provinces.

Despite that, Graham said it remains difficult for the retail sector to get the employees they’re looking for to grow their businesses.

“We constantly are dealing with recruitment and retention issues as people look at opportunities that they have available to work in a range of businesses,” he said.

“There’s needs at all levels of a business and (there are) some neat career opportunities and opportunities to grow into positions throughout the sector.”

One strategy the sector is trying out in order to attract workers is offering them more flexibility, according to Graham.

He mentioned that employers have also placed an emphasis on creating a “positive” workplace environment.

“Investments in creating this stronger workplace culture has become much more front of mind for many organizations,” Graham said, “as well as part of that being that flexibility to accommodate when workers are available and finding that balance between when the needs are and when individuals are able to support the business.”