June 21, 2006

Vancouver—BC’s strong economic fundamentals continue to boost consumer confidence and drive robust retail sales in April 2006. Statistics Canada found that BC’s retail sales in April jumped 6.9 per cent year-over-year. BC posted the third highest retail sales increase in the country, after Alberta (17.4% increase) and Saskatchewan (7% increase). BC’s retail sales in April edged up 1.3 percent over March 2006 to a high of $4.4 billion.

"Month-after-month reports of robust retail sales are a leading indicator of strong consumer confidence in the BC economy," said Mark Startup, president and CEO of Retail BC. "Positive job creation, record low unemployment and low interest rates have consumer confidence and retail sales rising on a steady upward curve."

Retail BC forecasts that retail sales will get an added boost from the upcoming one-point cut to the GST on July 1, 2006.

"Consumers can look forward to a $5-billion break on the GST and the opportunity to roll that money back into increased consumer spending," said Startup.

April’s retail sales surged in part due price hikes for gasoline. Six out of eight retail sectors experienced sales gains in April with the automotive sector leading the way (+3.6%). Retailers such as office supply stores, sporting goods stores, and hobby, music and book stores, registered a 2.5% increase in their sales in April.