September retail sales rise, but are still weaker over same time last year.

By David Friend @ http://ca.news.yahoo.com/s/capress/091123/business/statscan_retail_6

Summary:

The sales of merchandising businesses have increased in September, but relatively low gain has shown compared to last year. However, results are more positive when compared month-to-month. The reason for the decline in sales is due to last year global recession. Sales have increase in supermarkets and most merchandising businesses. The home supplies and clothing and accessories sectors have been decreasing. Doug Porter, the deputy chief economist at BMO Capital Markets claims that the Canadian economy is in full recovery mode. Retail sales rose in eight provinces in September, except for Alberta and Saskatchewan.

Reflection:

I assume that as retail sales increase, the inventory of those businesses will also increase. The reason for this is that retailers have to purchase more inventories in order to fulfill the demand of consumers; otherwise, it will lead to inventory shortage. The Canadian economy is recovering, therefore, this trend of increasing sales will continue.

Connection:

Merchandising business is a type of business that buys and sells goods to make profit. In this article, it talks about sales of retail businesses, which is a type of merchandising business that buy goods from wholesalers and manufacturers and sell to public. This is related to our chapter since the chapter is on merchandising business. As mentioned earlier, increasing sales could possibly lead to increase in inventory, which is also another topic this chapter has covered.