New Brunswick’s retail industry has seen a dramatic jump in sales, but it’s not all good news.
Gloucester and Burlington outlets have seen their sales surge, but there’s a bit of a catch in that.
The two cities have reported an increase of 10 per 100 square metres of business space in the past 12 months, while the other two areas reported increases of only 1 per cent and 1 per 10 square metres.
Globally, there’s been a jump in business in the last 12 months.
That’s up from the previous year’s 2.5 per cent rise, according to data compiled by the Business of Retail, a research and advocacy group.
The rise in sales is largely due to a growing number of companies entering the market, said Mike Kiely, CEO of the Canadian Chamber of Commerce and Industry.
That’s led to the demand for office space, but also more retail space, he said.
That also has led to higher prices.
Kiely said he expects the region to experience some of the biggest rises in prices of any market over the next few years, but noted the province is still one of the best places in Canada to rent space.
While it’s nice to see a bit more retail coming to the province, it’s important to remember the economy has been recovering since the recession.
Kies said he thinks a large part of the reason for that is the fact the province’s still growing at a slow pace.
He believes there will be more retail in the province in the years to come, but said there will also be a shift to smaller businesses that are less able to compete for the limited space available.
Kriely said it’s tough to pinpoint what’s driving the increase in retail, but he believes the biggest reason is a lack of competition.KIELY: The problem is there’s not enough retail space for all the people in the country, that there’s too much competition in the market.
Kierlianne Mottl, vice-president of sales for The Business of Franchise, said it has been the same story for decades.
Mott-Lott said a lot of her business clients have to spend a lot more time in the office to keep up with demand, and are forced to cut back on hours.
She said that makes the business harder for those who are struggling financially.
Karen Boudreau, director of the Business and Industrial Development program at Nova Scotia’s Economic Development Corporation, said the number of businesses entering the province has increased in recent years, and that’s likely driven by a growing interest from business owners looking for new space.
Boudreau said the growth has been fuelled by a couple of factors.
First, there are a lot less companies in the industry, which makes it harder to keep pace with the growth of the market overall.
She added that businesses are finding it harder and harder to rent office space.
For more information about Nova Scotia, visit the province.ca website or the government’s website at https://www.novascotia.ca.