Strike and GST holiday mean businesses are losing sales in most critical time of the year.
TORONTO, Dec. 3, 2024 /CNW/ - Retail Council of Canada (RCC) is again urging the federal government to take immediate action to end the ongoing Canada Post strike, now approaching its fourth week.
This prolonged strike is negatively impacting retailers of all sizes at the most critical time of the year – as they also struggle to meet their customers' holiday shopping needs and wrestle to remain viable in challenging economic times.
The following statement was issued today by RCC President and CEO, Diane J. Brisebois:
"Retail knows that the best labour agreement is negotiated with both parties at the table, but that's not happening and it's time to end the strike. In the meantime, thousands of retailers and millions of consumers are paying the price.
"Canada Post is an economic lifeline, delivering parcels, documents, flyers and essential goods. This prolonged strike is now undermining its critical role, eroding trust and driving up costs for retailers and consumers alike.
"By failing to deliver, it is also reversing the retail sector's investments in online shopping convenience, where Canada Post is a primary delivery provider. Because of the length of this strike, alternative delivery is either unavailable or too expensive – which means shipments are not making it to businesses, stores or customers in time for the holidays.
"The strike is jeopardizing Canadian jobs, and businesses of all sizes are taking a hit. Smaller retail businesses are struggling to ship products and receive payments, straining cash and threatening their survival. Promotional flyers and the best discounts of the year are failing to reach mailboxes, leaving stores with unsold goods. Large retail chains are facing significant costs for alternate flyer and product distribution, risking sales as consumers turn to international competitors with alternate delivery options.
"It's a strange paradox: The government hopes to make holiday shopping more affordable with an HST-GST tax holiday, while a strike at its Crown Corporation Canada Post is making e-commerce impossible, keeping the best promotional deals out of consumers' hands, and directing gifts to more expensive delivery methods.
"Compounding the impact of the Canada Post strike, retail businesses big and small have raised alarm bells around the challenges of the HST-GST tax holiday. This includes unexpected IT program changes and costs, customers delaying purchases while missing the best deals of the year on Black Friday, and general in-store confusion around program criteria – with some customers even returning used goods hoping to buy them back tax-free. This is happening at a time when retailers traditionally halt administrative distractions to focus on their highest sales period – as many retailers realize more than half of their annual sales in December alone."
"It is estimated that the losses in the sector due to the prolonged strike are surpassing the Billion Dollar mark and climbing."
About Retail Council of Canada
Retail is Canada's largest private-sector employer with over 2.3 million Canadians working in our industry. This sector is a major economic contributor, generating more than $93 billion annually in wages and employee benefits. In 2023, core retail sales (excluding vehicles and gasoline) exceeded $502 billion. Retail Council of Canada (RCC) members account for more than two-thirds of these core retail sales and 95 per cent of the grocery market. Our membership extends across the country, embracing over 54,000 storefronts in diverse formats such as department, grocery, specialty, discount, independent retailers, online merchants, and quick service restaurants. As the Voice of Retail™ in Canada, RCC, a not-for-profit, industry-funded association, proudly represents retail businesses of all sizes, from small independents to large national chains, in communities nationwide. retailcouncii.org.
SOURCE Retail Council of Canada
Matt Poirier, VP, Federal Government Relations, [email protected]; Santo Ligotti, VP, Marketing and Member Services, [email protected]
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