Retail Services Price Index, third quarter 2015

Released: 2016-02-16

The Retail Services Price Index (RSPI) increased 1.7% in the third quarter, marking an eighth consecutive quarterly advance. Margin growth was widespread, with 7 of the 10 major retail sectors recording gains.

Chart 1 
Retail Services Price Index

Retail margins at gasoline stations rose 3.6%. Margins at other gasoline stations rose 5.4% as a result of higher margins for fuel products, but were moderated by a 0.7% decline at gasoline stations with convenience stores, due to lower margins for convenience store goods. Food and beverage stores (+1.6%) reported broad-based margin growth, with increases concentrated at grocery stores (+1.4%) and beer, wine and liquor stores (+3.6%). Margins at general merchandise stores (+2.2%) also rose. These three sectors contributed the most to the growth in the RSPI.

In the third quarter, furniture and home furnishing store retailers (+4.0%) posted the largest growth in margins across all retail sectors, as a result of fewer discounts and promotions. Much of this growth was concentrated in the furniture stores (+6.6%) category.

Margins at clothing and clothing accessory stores (+2.0%), building material and garden equipment and supplies dealers (+1.0%), and health and personal care stores (+0.7%) also advanced.

Largely moderating the increase in the RSPI were lower margins at miscellaneous store retailers (-3.2%), specifically office supplies, stationery and gift stores (-6.2%) following back-to-school promotional events. Sporting goods, hobby, book and music stores (-0.4%) and electronics and appliance stores (-0.1%) also posted lower margins in the third quarter.

Year-over-year change

The RSPI increased 4.4% in the third quarter compared with the same quarter a year earlier. Of the 10 major retail sectors, 7 were up and 3 were down.

Building material and garden equipment and supplies dealers (+11.0%) continued to record the largest year-over-year margin increase, with gains largely concentrated at home centres (+15.4%). The home centres industry comprises retailers primarily engaged in retailing a general line of home repair and improvement materials and suppliers, such as lumber, electrical goods, plumbing goods and hardware.

Margins at food and beverage stores increased 7.0% on a year-over-year basis, continuing their upward trend started in the fourth quarter of 2014. Much of the gain was concentrated in the grocery stores (+8.1%) category. According to market intelligence, grocery store retailers are experiencing a period of broad retail price inflation and reduced competition.

Gasoline stations (+4.7%) also reported higher margins year over year, as they continued to retain some of the input cost savings while passing the balance onto consumers. Margins at furniture and home furnishing stores (+4.2%), general merchandise stores (+3.1%), and clothing and clothing accessories stores (+2.8%) also advanced.

Health and personal care store margins edged up 0.9% on a year-over-year basis.

Moderating the overall year-over-year gain in the RSPI were declines at electronics and appliance stores (-4.1%), sporting goods, hobby, book and music stores (-1.6%) and miscellaneous store retailers (-0.2%).

Contact information

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