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RETAILERS EXPECT STRONG 1998

Independent retailers expect their sales to grow 5.3% in 1998, according to a survey done by the Retail Council of Canada. Last year, sales jumped an average of 4.3%, compared to 2.8% in 1996. Maritime retailers said 1997 holiday sales increased 7.7% and they expect a 6.5% growth this year. Retailers in the prairie provinces said sales rose 4.4% and they predict a jump of 6.7% this year. In Ontario, sales were up 4.3% and a 5.1% growth is expected this year. Quebec expects sales to jump 3.1% in 1998. 1997 sales increased 2%. British Columbia lagged the rest of the country, reporting a 1% drop in holiday sales. The forecast for 1998 is a 2.6% jump in sales. In the survey, respondents were asked to indicate the challenges they face in 1998. The retailers were concerned about fluctuations in the value of the Canadian dollar, a lack of buying power when negotiating with suppliers, intense competitive pressures from larger retailers, high taxes and government interference.

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