Retail spending dips in July, small Calgary business feeling impact

The federal government's decision to drop some retaliatory tariffs on American products could be what helps some small businesses.

Preliminary estimates show retail spending was down in July according to Statistics Canada.

Peggy Rafuse -- who owns Imagine Vintage Wear, a used clothing and accessory store in Inglewood -- said she has noticed the dip.

“This summer they (sales) have been down for sure,” said Rafuse.

Stats Canada says for July retail sales dipped 0.8 per cent, though it cautioned the figure would be revised.

Rafuse points to the constant rain in the area along with the threat of tariffs.

“I do think the tariffs have affected it and probably lost me some sales where people were worried about what was going to happen with bigger ticket items that they needed to buy,” said Rafuse.

Higher expenses

The Canadian Federation of Independent Business (CFIB) says three out of four small business in Alberta are experiencing higher expenses.

“Small businesses, nationally, have told us that, you know, one in five have six months left, in terms of how long they can operate with the current tariff environment,” said Kayode Southwood, CFIB Alberta’s senior policy Analyst.

On Friday, it was announced that Canada is dropping its counter-tariffs on the American goods that are covered by the free-trade agreement between the two countries, amid the ongoing trade war with the United States, Prime Minister Mark Carney said.

“Small businesses have told us that Canada’s retaliatory tariffs were actually the most damaging to their business secondly only to the tariffs on steel and aluminum,” said Southwood. “There is still a lot of work to be done to create cost relief for some of these small businesses.”

Customers holding back

Ama Jewellery and Watches sales in Inglewood have noticed customers holding back from buying.

“They have a hard time buying because first they have to think about their regular life, (with) even the price of food being so high -- so they are not going to buy something that is fashionable,” said Teresa Mirzaee, owner of Amour Jewelry and Watches.

To help small businesses the CFIB is advocating to reduce the small business tax to 0 per cent to help provide cost relief.