Canadian Giftware Retail Sales Increased in the First Quarter

Source: CGTA Industry Information Date: April 14, 2009

Over half of giftware retailers reported that sales increased in the first quarter compared to the same period a year ago. Almost one in seven retailers expects second quarter 2009 sales to be higher or on par with second quarter 2008.

Sales

Over half of retailers (57%) reported that sales are higher or on par with first Quarter 2008. One in three retailers (31%) reported that sales were up. Slightly less than half (43%) reported that sales were lower. Of those that reported an increase in sales, the average sales increase was 20%. Of those that reported a decrease in sales, the average decrease was 22%. One in four (26%) reported that First Quarter 2009 sales were on par with first Quarter 2008.

Inventories

Almost two out of three (65%) retailers reported that inventories are lower or on par with first quarter 2008. However, 35% reported that inventory levels are higher. Slightly more than one quarter (28%) reported that inventory levels are lower than last year. Of those that reported an increase in inventory, the average inventory increase was 19.7%. Of those that reported a decrease in inventory, the average decrease in inventory was 20.2%. The remaining 37% reported that first quarter 2009 inventories are on par with First Quarter 2008.

Margins

Encouragingly, 75% of retailers reported that margins were higher or on par with first quarter 2008 margins. Only 14% of retailers reported that First Quarter 2009 margins are higher than First Quarter 2008. One quarter of retailers (25%) reported that First Quarter 2009 margins are lower than last year, while 61% reported that First Quarter 2009 margins were on par with last year.