Strong retail sales belie weak economy

By Trish Audette

The Canadian economy may be in a period of zero growth, but some businesses in Centretown are saying sales are finally up again after a fall season that faltered in the wake of Sept. 11 and the weekend of the G-20.

“A lot of businesses have slowed down, but they’re picking up again,” says Sharon McKenna, manager of the Sparks Street Mall Business Improvement Association.

“I think it’s going to be a great season,” says Patricia Caven, owner of Perfect Books on Elgin Street. “I think people are kind of in a haze since Sept. 11. If they’re not going away, going to restaurants, going to movies, then people are still buying books.”

Caven says her sales for the weekend of the G-20 in November were up 48 per cent from the same period last November. At HMV on Sparks Street, meanwhile, assistant manager Sonja Koktan says this year’s sales are comparable to last year’s.

“Our November is pretty much on par with other years, we haven’t swayed either way,” Koktan says. “We just kind of take it day by day.”

Increased sales for Centretown businesses may seem unusual when Canada is entering a period of economic recession. Yet Garth White, senior vice president of the Canadian Federation of Independent Businesses which represents 2,000 small businesses across Canada, says Centretown is on a par with independent stores all across the country.

“Business has been on shaky ground because of the uncertainty in the aftermath of Sept. 11,” White says. “However, [small businesses] across the country are holding firm and holding employment.”

In fact, White says that while larger Canadian corporations are cutting jobs in almost every sector, roughly 75 per cent of Canada’s independent businesses are hiring more people.

“There’s never been a better time for consumer spending and consumer confidence,” White says. “We’re weathering the storm really well across the country.”

White expects businesses in Ottawa will continue to have increased sales, even in the face of a coming recession.

“Ottawa’s always been a little healthier for small businesses because it’s so diversified.”

Many business owners in Centretown are saying that, perhaps in response to the Sept. 11 terrorist attacks in the U.S., people are staying home this year – and in some cases, decorating their houses.

“In September it was hard. For that week [of Sept. 11] and the following week it was slow… the G-20 [protests] didn’t help us, but it isn’t too bad now,” says Monique Warrack, president of Christmas in the Capital on Elgin and Lisgar. “At this time of year it’s pretty busy.”

Though unable to offer any specifics, Warrack says this year’s sales figures are on a par with last year’s, if not a little lower.

“People are buying basically all kinds of ornaments this year,” she says.

Vickie Studholme, the manager of a Hallmark store on Sparks Street, also says people are buying items to dress their homes up for Christmas.

“We’re selling a lot of angels, people like those kinds of inspirational things, [basically] all the stuff that makes you feel good,” Studholme says, noting that chocolate has been a big seller in the last couple months.

Robert Alyea, owner of Alyea’s Jewellers Ltd. at the corner of Sparks and Elgin, says that although the period after Sept. 11 was slow, business was down even before September. In the last few weeks, however, sales have increased, and virtually everything is selling – especially diamonds.

“There seems to be more and more people are wanting to have a good feeling,” Alyea says. “People are usually happy when they’re shopping for jewellery.”