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Shopping Centers Today -> March 2002
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CHALLENGES LIE AHEAD FOR CANADIAN RETAIL
Keynote speakers at this year’s ICSC Whistler Conference were cautiously optimistic about Canada’s economy, noting that though the country appears to have avoided a recession, hurdles nevertheless remain for retailers.
“Tough and challenging times are still ahead, at least for the first part of 2002,” said Seymore Obront, ICSC’s Canadian Division vice president, speaking at the January event. But he cited some good news about Canada’s performance since Sept. 11: Consumer cocooning created strong demand for home entertainment merchandise, electronics products and home furnishings in the last three months of 2001. At the same time, inflation declined substantially, interest rates fell from 5.75 percent at the beginning of 2001 to 2.25 percent at year’s end, and disposable income rose 4.2 percent in the third quarter of 2001.
These factors bode well for Canada’s recovery from its current economic slump, but Obront stopped short of making such a forecast. He noted that consumer spending drove national economic growth in the first half of 2001, and that a drop in job creation has threatened spending since then.
In the United States there are signs of recovery, such as robust consumer spending and high levels of public confidence, observed Michael P. Kercheval, ICSC’s president and CEO. Yet retailers there, too, are facing challenges, he noted.
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