Reitmans Ord Shs V.RET.A

Core Retail Sales/Cpi

[Torontojay]

According to StatsCan, core retail sales increased 4.4% in February over last year. Keep in mind that these are not inflation adjusted numbers. Volume in transactional terms was essentially flat y/y. The consumer price index reading for Canada increased from last month to 4.4% which coincides with core retail sales increases. The CPI should bottom by June/July as energy prices peaked last year in June. Cpi has trended lower because of lower energy prices for the last 10 months which significantly helped to bring down inflation. If energy prices inches higher in the second half of the year then Cpi could easily follow suit. 

On a monthly basis, Cpi was up a staggering 0.7% m/m or annualized at 8.7%! Maybe Tiff Macklem is not in restrictive territory? 

https://www150.statcan.gc.ca/n1/daily-quotidien/230516/dq230516a-eng.htm#

[nozzpack]

Nah. Even Powell says that a recession , if any, will be very mild. No signs yet and we are already on the downside of costs. Recessions are not 100% negative. They always contain growth stories and profitable niches which can make you rich Ya gotta be able to find those of course. RET has most of the definitives don't cha think..

[TheCount11]

Hahaha!  StatsCan and the rest of us have absolutely no clue.  How do they come up with 4.4%?  Explain the apparel portion to me like I am a child.    Use those numbers with caution during inflationary times.  Reread my post on Shelter and you will get an idea why BoC made serious policy mistakes   Reitmans investors are you following all the publicly

[TheCount11]

"We noticed a shift in consumer behavior as customers moved away from best level products in certain categories, such as tires and household consumables towards our better and good level products.   The current high inflation rates have led customers to prioritize essential products over higher ticket discretionary ones which as you would expect, has a more market impact on sales of

[Torontojay]

TheCount11, I'm amused by the argument Christia Freeland made about cancelling her Disney subscription to combat higher prices. Yes, I'm sure that's going to solve the problem Canada is dealing with. Why don't they address the affordability issue with over 1 million foreigners expected to land in Canada this year. This means home prices and rent prices move higher. Not to mention

[TheCount11]

Agreed.  You will find higher shelter costs everywhere but the CPI.  Supply of housing does not grow or shrink quickly however demand can change rapidly with 1 million foreigners.  Have academics studied the effects of foreign money plowed into housing on money supply?  Be interesting to see because Vancouver house prices haven't had any relation to incomes for years

[Lllennn]

You should be very happy with Freeland, she is giving lump sum payments to mostly single women who probably go to Reitmans with that money to purchase new outfits. Yes I agree that Reitmans has headwinds at Q earnings but Reitmans also has a few tail winds and probably a good percentage of Government inflation package will go to Rietmans. No way of knowing real inflation because a lot is driven by