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Annual Retail Trade
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2007
Operating profits – calculated by subtracting total operating expenses and the cost of goods sold from total operating revenues - for both store and non-store retailers amounted to $23.3 billion in 2007, up 11.3% from 2006. The combined sales of beer, wine and liquor stores, gasoline stations and general merchandise stores (including department stores and warehouse clubs) accounted for 44% of operating profits compared to 25% of operating revenue.
Overall, operating revenues for store retailers rose 6.4% to $438.3 billion in 2007.
In contrast, revenues from non-store retailers fell 0.5% to $13.0 billion. This decline was due to a decrease in the electronic shopping and mail-order houses sector. This sector includes businesses engaged exclusively in internet sales or companies that are able to separate their in-store sales from internet sales.
Store retailers that have a storefront, accounted for 97% of total retailing activity, while non-store retailing represented 3%.
Traditional stores can be divided into two categories — retail chain stores and non-chain stores. Chain stores' share of total operating revenue remained unchanged from 2006 at 46%.
Chain stores dominated market share of revenues in three sectors: department stores; beer, wine and liquor stores; and clothing stores.
Gross margins – the difference between total operating revenues and cost of goods sold - rose in all retail store sectors in 2007, except for miscellaneous store retailers. The margins grew at the fastest pace in specialized building materials and garden centres (+21%), and home electronic and appliance stores (+18%).
Total operating expenses of store retailers amounted to $95.4 billion, up 7.1% from 2006. Labour costs accounted for roughly half of all operating expenses in 2007. Except for miscellaneous store retailers, operating expenses were up in all trade groups.
The fastest growth rates in expenses occurred in specialized building materials and garden centres (+19.2%) and in home electronic and appliance stores (+18.9%).
