Retail Services Price Index, fourth quarter 2013
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Released: 2014-05-16
The Retail Services Price Index (RSPI) decreased 0.3% in the fourth quarter of 2013, with margin declines recorded in 5 of the 10 major retail sectors. This was a relatively large fourth-quarter decline for the RSPI, compared with the same quarters in 2012 (-0.1%) and 2011 (+0.6%).
Chart 1
Retail Services Price Index
Electronics and appliance stores (-2.4%) posted the largest margin decrease on a quarterly basis. However, due to their higher relative importance, general merchandise stores (-1.3%) and gasoline stations (-0.7%) contributed the most to the RSPI decline. Margins for building material and garden equipment and supplies dealers (-1.1%) and food and beverage stores (-0.1%) also fell.
Furniture and home furnishings stores (+1.7%) posted the largest margin increase in the fourth quarter, following a decline in the third quarter. Margin advances posted by clothing and clothing accessories stores (+1.2%), sporting goods, hobby, book and music stores (+1.1%) and health and personal care stores (+0.9%) helped to offset the declining retail margins.
Year over year, the RSPI advanced 1.2%. Of the 10 major retail sectors, 5 posted year-over-year increases, with gasoline stations (+4.5%) posting the largest gain.
Margins at general merchandise stores (+3.0%) also increased. Advances in retail margins for furniture and home furnishings stores (+1.8%) and sporting goods, hobby, book and music stores (+1.4%) also contributed to the year-over-year increase of the RSPI.
Margins for food and beverage stores (+0.5%) rose. This was the smallest year-over-year increase for food and beverage retailers since the second quarter of 2010. According to market intelligence, there is growing demand from grocers for price rollbacks and freezes on supplier prices, which is indicative of an increasingly competitive grocery sector. Grocery suppliers are also facing increasing pressure from a weakening Canadian dollar.
Year-over-year margin advances were moderated by declines posted by electronics and appliances stores (-1.8%) and building material and garden equipment and supplies dealers (-1.3%). Severe weather conditions in the latter half of the fourth quarter may have played a role in margin decreases for building material and garden equipment and supplies dealers.
Margin decreases were also posted by health and personal care stores (-0.4%), clothing and clothing accessories stores (-0.3%), and miscellaneous store retailers (-0.2%).
Note to readers
The Retail Services Price Index (RSPI) represents the change in the price of the retail service. The price of the retail service is defined as the margin price, which is the difference between the average purchase price and the average selling price of the retail product being priced. The RSPI is not a retail selling price index.
With each release, data for the previous quarter may have been revised. The series are also subject to an annual revision with the release of second quarter data of the following reference year. The indexes are not seasonally adjusted.
The Retail Services Price Index for first quarter 2014 will be released in August.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (613-951-4636; statcan.mediahotline-ligneinfomedias.statcan@canada.ca).
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