Retail Services Price Index, first quarter 2016
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Released: 2016-08-18
The Retail Services Price Index (RSPI) advanced 1.1% in the first quarter, with 8 of the 10 major retail subsectors posting margin gains. This increase marked a rebound from the record margin contraction observed in the fourth quarter.
Chart 1
Retail Services Price Index
Margins at general merchandise stores advanced 2.6%, as retailers reported fewer promotions in the first quarter. Retailers at all other general merchandise stores (+5.2%) reported the highest margin growth in this subsector.
Food and beverage stores (+1.0%) reported margin gains, which were mainly attributable to increases at specialty food stores (+2.7%) and at beer, wine and liquor stores (+1.9%). Margins at grocery stores rose 0.6%. Retailers in this subsector are facing increased competition from general merchandise stores, where food and beverages sales have risen significantly in the last three years.
Retailers in the clothing and clothing accessories stores subsector (+1.4%) also reported margin gains, mainly at shoe stores (+3.2%) and at jewellery, luggage and leather goods stores (+2.2%).
These three retail subsectors were the greatest contributors to the quarterly increase in the RSPI.
To a lesser extent, margin gains at furniture and home furnishing stores (+2.5%), miscellaneous store retailers (+2.5%) and electronic and appliance stores (+2.2%) also contributed to the growth in the RSPI.
Moderating the overall quarterly increase in the RSPI were margin declines at sporting goods, hobby, book and music stores (-0.6%) and at health and personal care stores (-0.4%).
Year-over-year change
The RSPI was up 2.3% in the first quarter compared with the same quarter a year earlier. Of the 10 major retail subsectors, 7 were up and 3 were down.
Electronics and appliance stores (+7.6%) posted the largest year-over-year margin increase, followed by sporting goods, hobby, book and music stores (+3.9%) and food and beverage stores (+3.8%).
Margins rose at miscellaneous store retailers (+3.6%), with gains largely in office supplies, stationery and gift stores (+5.7%). Building material and garden equipment and supplies dealers (+3.4%), clothing and clothing accessories stores (+3.0%) and general merchandise stores (+2.9%) also recorded higher margins.
The margin increases posted by these seven subsectors were higher than the overall year-over-year advance of the RSPI in the first quarter.
Lower margins at gasoline stations (-2.1%), health and personal care stores (-1.7%) and furniture and home furnishings stores (-0.7%) had a moderating effect on the overall year-over-year rise of the RSPI.
Note to readers
With the release of fourth quarter 2015 data, the Retail Services Price Index (RSPI) was updated to increase its relevance. The RSPI update included the selection of a new sample for 4 of 10 major retail subsectors, the adoption of the 2012 North American Industry Classification System (NAICS) and updates to RSPI basket weights for all retail subsectors. The following retail subsectors were updated with new samples:
- Furniture and home furnishings stores (NAICS 442)
- Electronics and appliance stores (NAICS 443)
- Sporting goods, hobby, book and music stores (NAICS 451)
- General merchandise stores (NAICS 452).
The RSPI series were also converted to 2013=100, with 2013 as the base year. The relative importance of the basket items was updated using the 2013 annual gross margins from the Annual Retail Trade Survey (2447).
Two new CANSIM tables, 332-0024 (monthly) and 332-0025 (quarterly), based on 2013=100 and using new vectors, replaced CANSIM tables 332-0003 and 332-0007, which were terminated with the release of fourth quarter 2015 data. A concordance table of the old CANSIM table vectors with the new CANSIM table vectors is available.
As a result of these updates, users should exercise caution when comparing index levels based on the new basket with index levels based on the old basket.
The 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.
The indexes are not seasonally adjusted. Data are available at the Canada level only.
Infographic: Producer Price Indexes at a Glance
The infographic, "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M), is now available. This infographic demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Contact information
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