Feels like a billion dollars
August 25, 2009
Winnipeg Free Press
Written by: Murray McNeill
Manitobans spend big bucks as recovery takes off
MILLIONS of dollars are being spent on local shopping centre upgrades as owners gear up for a retail recovery that's already showing signs of taking hold in Manitoba.
Manitobans went on another mini buying binge in June, forking out $1.25 billion for everything from building materials to new vehicles as Manitoba rang up the biggest monthly retail sales increase in the country, according to Statistics Canada figures released on Monday. The 2.8 per cent increase was the second consecutive monthly gain for Manitoba, and showed May's 1.1 per cent improvement was no fluke after six previous months of mostly weaker sales.
Retail sales at the national level also rose much more than expected in June, adding to mounting evidence that Canada is pulling out of recession.
Sales were up one per cent during the month, to $34.4 billion, StatsCan said, which was the fifth increase in the last six months.
Most economists had forecast a 0.2 per cent rise in June retail sales, after a revised 1.1 per cent spike in May.
"Gains in retail sales add further weight to growing evidence that Canada's recession ended in June," said Krishen Rangasamy, of CIBC World Markets.
He said the broad-based gains also imply that "the consumer's mood is beginning to warm up. The improved confidence is corroborated by the rebound in the housing market and is a big positive for growth going forward.
Manitoba's back-to-back sales increases were good news for local shopping centre owners who are spending big bucks, hoping to take full advantage of the economic recovery once it arrives in full force.
The Pembina Crossing shopping centre at Pembina Highway and Bishop Grandin Boulevard is undergoing a $1.5-million facelift including the installation of new signage and a fresh coat of paint for the exterior of the 185,000-square-foot complex.
Bob Downs, development manager for Shindico Realty Inc., which manages the shopping centre, said it's better to be doing the work now when it's not as busy as it will be once the economic recovery is in full swing.
"When things really get going, you don't want to be interfering with customers' access to the stores," he said.
Downs said the renovation work began in early June and should be completed by the end of September.
Other shopping centres undergoing upgrades or expansions include some of the big regional players such as Polo Park and Garden City shopping centres, as well as smaller retail malls, such as the Tyndall Market Mall at Keewatin Street and Burrows Avenue and Westwood Shopping Centre at 3310 Portage Ave.
An $855,000 building permit was issued last month for an addition to the Tyndall Market Mall, while a $700,000 permit was issued in May for exterior alterations to Westwood Shopping Centre.
Garden City Shopping Centre was also granted a $1-million-plus permit in April for interior renovations, while three permits worth a total of more than $3 million have been issued over the last four months for interior renovations at Polo Park.
Polo Park manager Deborah Green said the bulk of the work, which has yet to get underway, will be the redevelopment of Canada Safeway's former 40,000-square-feet store on the eastern side of the mall.
Green said negotiations are ongoing with two international retail chains that are interested in opening their first Winnipeg stores in the Polo Park mall. But it will be another three months before she can disclose who they are, she said.
There's another new store slated to open in the mall within the next few months, Green said, but she wouldn't reveal its name, either.
The retailers that Polo Park officials have been talking to are being more cautious but they're still pressing ahead with expansion in spite of the recession, she added.
Manitoba was one of nine provinces to post an increase in retail sales in June, but Saskatchewan was the only other one with a gain of more than two per cent. (Its increase was 2.3 per cent).
Despite the healthy monthly gain, Manitoba's June sales were still 1.2 per cent lower than those for June of last year, when the economy was still rolling along.
Nationally, sales rose in six of eight retail trade sectors in June, with a 4.7 per cent rise in sales at gasoline stations being the main contributor, StatsCan said.
murray.mcneill@freepress.mb.ca |
