CANADIAN RETAILERS AHEAD OF AMERICA'S BLACK FRIDAY GAME

RSM Richter: Moderately successful season won't be anyone's saving grace

TORONTO, Nov. 25 /CNW/ - RSM Richter - As Canadians dive into the manic holiday shopping season, retailers scramble to find their holiday groove amidst recession recovery and a new global retail game, according to an RSM Richter retail expert.

"Canadian retailers are showing tempered optimism; they are dealing with increased competition, fickle consumers, challenges in the supply chain and a strong loonie," said Lynn Bevan, partner at RSM Richter. "In the U.S., Black Friday sales should be better than last year although still a long way from the boom years."

Residual fear from the recession south of the border still has consumers showing reluctance in their spending. The outlook in Canada is more positive because the country fared better through the recession. As a result, Canadians are more willing to open their wallets this holiday season.

Challenges and strategies in Canadian retail

• Cross-border shopping As we approach Black Friday, America's traditional kick-off to seasonal spending, Canadians continue to cross the border to find a better bang for their Canadian buck.
• New retail players New entrants to the Canadian retail landscape from the U.S. and Europe means more competition for consumer dollars and space in "A" malls.
• Year-long sales strategy Holiday season sales can't be counted on to make or break a retailer's success. Having a year-long strategy that marries discipline, creativity and hands-on analysis of sales against inventory is required.
• Globalization Global supply chain has undergone changes that affect Canadian retailers.

"Even though Canada's holiday shopping season launches earlier than Black Friday, strong retailers execute strategy throughout the year," said Bevan. "Intuition is required, but discipline drives success. And that's how the smart retailer wins the game."

As a new dominating economic superpower, China has changed the landscape of international supply and demand. Canadian retailers are facing new challenges as the industry struggles with an overwhelming reliance on products from China. "Increased Chinese domestic demand on manufactured product is making it harder for retailers to get the product they need, when they need it," added Bevan. "Sourcing new product and increasing prices, often mid-order, make the need for strategy all the more essential."

Another change in the retail landscape is that mall space is now at a premium. With foreign retailers entering Canada and sharp increases in rental rates, retailers are looking for new ways to get more sales from smaller stores. "Having the right product on the shelves at the right time, along with sales oriented staff, is becoming more and more critical to keeping stores profitable," said Bevan.

About RSM Richter and RSM Richter Chamberland
Entrepreneurs have been the focus of our firm since it was founded in 1926. Today, RSM Richter, known as RSM Richter Chamberland in Montreal, is the ninth largest independent accounting, business advisory and consulting firm in Canada. RSM Richter offers a full range of advisory and consulting services, supported by in-depth industry knowledge and national and international experience. Strategically located in Calgary, Toronto and Montreal, RSM Richter and RSM Richter Chamberland are part of a strong international affiliation covering all major markets around the globe. RSM International is the 6th largest network of independent accounting and consulting firms in the world operating from 736 offices in 76 countries. For more information, please visit www.rsmrichter.com.

For further information:

on the survey results or to organize an interview:

Melissa Prince
Veritas Communications
P - 416-482-2669
C - 416-704-8733
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