Retail trade 2016 SECTOR SPOTLIGHT NAICS Report Contents. What is this industry sector? STATISTICS CANADA DEFINITION SECTOR STRUCTURE
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1 2016 SECTOR SPOTLIGHT NAICS Retail trade Report Contents What is this industry sector? STATISTICS CANADA DEFINITION SECTOR STRUCTURE How does this sector stack up in Ottawa? OTTAWA DASHBOARD HIGHLIGHTS Sector Employment (Jobs) REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada) 2016 EMPLOYMENT A SUBSECTOR VIEW 2016 EMPLOYMENT SNAPSHOT INDUSTRY GROUPS JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook) KEY OCCUPATIONS IN THE SECTOR Sector Self-Employment SECTOR AT A GLANCE A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT Sector Business & Employer Counts SECTOR AT A GLANCE BUSINESS COUNTS AT INDUSTRY GROUP LEVEL Online Supply & Demand ONLINE JOB POSTINGS ONLINE JOB SEEKER PROFILES In the News JOB GAINS, JOB LOSSES, AND TRENDS/PROJECTIONS Sample Report Industry Summaries Note on geography: This report looks at data for the Ottawa Census subdivision. Census subdivision (CSD) is the general term for municipalities (as determined by provincial/territorial legislation). Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 1
2 What is this industry sector? STATISTICS CANADA DEFINITION This sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers, store and non-store retailers. Their main characteristics are described below. Store retailers Store retailers operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve businesses and institutions. These include establishments such as office supplies, computer and software, gasoline stations, building material dealers, plumbing supplies and electrical supplies. Non-store retailers Non-store retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. They reach customers and market merchandise with methods such as, the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of traditional and electronic catalogues, door-to-door solicitation, in-home demonstration, temporary displaying of merchandise (stalls) and distribution by vending machines. SECTOR STRUCTURE Below we show this sector s twelve subsectors (3-digit level), as well as the 4-digit level Industry Groups that will be explored in this report. SUBSECTOR NAICS 441 Motor vehicle and parts dealers 4411 Automobile dealers 4412 Other motor vehicle dealers 4413 Automotive parts, accessories and tire SUBSECTOR NAICS 442 Furniture and home furnishings 4421 Furniture 4422 Home furnishings SUBSECTOR NAICS 443 Electronics and appliance 4431 Electronics and appliance Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 2
3 SUBSECTOR NAICS 444 Building material and garden equipment and supplies dealers 4441 Building material and supplies dealers 4442 Lawn and garden equipment and supplies SUBSECTOR NAICS 445 Food and beverage 4451 Grocery 4452 Specialty food 4453 Beer, wine and liquor SUBSECTOR NAICS 446 Health and personal care 4461 Health and personal care SUBSECTOR NAICS 447 Gasoline stations 4471 Gasoline stations SUBSECTOR NAICS 448 Clothing and clothing accessories 4481 Clothing 4482 Shoe 4483 Jewellery, luggage and leather goods SUBSECTOR NAICS 451 Sporting goods, hobby, book and music 4511 Sporting goods, hobby and musical instrument 4513 Book and news dealers SUBSECTOR NAICS 452 General merchandise 4521 Department 4529 Other general merchandise SUBSECTOR NAICS 453 Miscellaneous store retailers 4531 Florists 4532 Office supplies, stationery and gift 4533 Used merchandise 4539 Other miscellaneous store retailers SUBSECTOR NAICS 454 Non-store retailers 4541 Electronic shopping and mail-order houses 4542 Vending machine operators 4543 Direct selling establishments Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 3
4 How does this sector stack up in Ottawa? OTTAWA DASHBOARD The graphic below ranks Ottawa s Top 12 sectors (based on # of jobs in 2016) and shows how Retail trade (NAICS 44-45) stacks up against the other sectors on a dashboard highlighting key local labour market information (LMI). HIGHLIGHTS 10% of Ottawa jobs are in Retail trade. Job growth in this sector over the past three years accounted for 7% of all job gains in Ottawa. Ottawa is 14% below the national average in terms of share of workers in this industry average annual salary for jobs in this sector was $27,642. Just 6% of workers in this sector are self-employed. This sector accounts for 6% of all businesses in Ottawa and 12% of all employers (businesses with at least one employee). This sector accounted for 19% of all Ottawa online job ads in 2016, with the most ads posted by employers in Department, Specialty food, and Grocery. 75% of active online job seekers in this sector in Q identified Sales and service as the most recent occupation group in which they worked. Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 4
5 Sector Employment (Jobs) REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada) Region 2011 Jobs 2016 Jobs Change % Change Ottawa 54,049 58,223 4, % Ontario 743, ,046 50, % Canada 2,058,318 2,132,934 74, % 2016 EMPLOYMENT A SUBSECTOR VIEW Job numbers, growth rate and forecast number of new jobs NAICS Description % Change ( ) Forecast change ( ) 445 Food and beverage 12,151 12,954 13,834 13,959 13,409 13,551 12% Clothing and clothing 7,118 6,971 6,924 7,313 7,497 7,602 7% 292 accessories 452 General merchandise 7,604 7,731 7,306 7,275 7,066 7,024-8% Motor vehicle and parts dealers 446 Health and personal care 4,816 4,933 5,151 5,328 5,475 5,552 15% 216 4,325 4,641 4,766 4,821 4,916 4,995 15% 212 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 5
6 444 Building material and garden 3,703 3,840 3,944 4,027 4,137 4,210 14% 194 equipment and supplies dealers 451 Sporting goods, hobby, book 3,221 3,106 3,072 3,180 3,498 3,530 10% 100 and music 453 Miscellaneous store retailers 3,250 3,666 3,490 3,410 3,437 3,455 6% Furniture and home furnishings 2,607 2,645 2,671 2,778 2,861 2,899 11% Electronics and appliance 2,291 2,269 2,124 2,051 2,242 2,230-3% Non-store retailers 1,437 1,442 1,528 1,612 1,714 1,738 9% Gasoline stations 1,527 1,490 1,406 1,379 1,443 1,436-6% -3 Source: EMSI Analyst EMPLOYMENT SNAPSHOT INDUSTRY GROUPS Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 6
7 JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook) Top 13 Industry Groups (by # of jobs) Bottom 14 Industry Groups (by # of jobs) Job numbers, growth rate and forecast number of new jobs TOP TEN NAICS Description % Change ( ) Forecast change ( ) 4451 Grocery 8,961 9,689 10,374 10,457 9,926 10,026 12% Clothing 5,474 5,449 5,496 5,799 5,787 5,873 7% Health and personal care 4,325 4,641 4,766 4,821 4,916 4,995 15% Automobile dealers 3,950 4,035 4,184 4,319 4,467 4,527 15% Other general merchandise 4441 Building material and supplies dealers 4511 Sporting goods, hobby and musical instrument 3,785 3,990 3,947 3,987 4,096 4,121 9% 91 3,498 3,643 3,717 3,781 3,865 3,930 12% 176 2,681 2,595 2,554 2,679 2,975 3,013 12% Department 3,819 3,742 3,359 3,287 2,970 2,903-24% Specialty food 2,346 2,464 2,577 2,505 2,457 2,476 6% Electronics and appliance 2,291 2,269 2,124 2,051 2,242 2,230-3% -6 SECTOR TOTAL 54,049 55,688 56,217 57,133 57,693 58,223 8% 1,643 Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 7
8 KEY OCCUPATIONS IN THE SECTOR The job data shown thus far has focused on number of workers in your sector and its industry groups. Now we take a look at what these workers are doing by focusing on the key occupations in your sector. Top Ten Occupations (Sector job numbers and growth over past five years) NOC Description Employed in Industry (2011) Employed in Industry (2016) Change ( ) % Change ( ) % of Total Industry Jobs (2015) 6421 Retail salespersons 13,400 14,936 1,536 11% 26% 6611 Cashiers 6,612 7, % 13% 0621 Retail and wholesale trade managers 5,602 5, % 10% 6622 Store shelf stockers, clerks and order fillers 4,939 4, % 8% 6211 Retail sales supervisors 3,779 3, % 7% 3131 Pharmacists 482 1,732 1, % 3% 6331 Butchers, meat cutters and fishmongers - retail and wholesale 7321 Automotive service technicians, truck and bus mechanics and mechanical repairers 1,861 1, % 2% 1,078 1, % 2% 7452 Material handlers % 1% 3219 Other medical technologists and technicians (except dental health) % 1% Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 8
9 Sector Self-Employment (2016) SECTOR AT A GLANCE A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT The chart below shows share of self-employment for the overall sector and for each industry group. Sector Ranking Share of workers self-employed in each industry group TOP TEN Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 9
10 Sector Business & Employer Counts (June 2016) SECTOR AT A GLANCE BUSINESS COUNTS AT INDUSTRY GROUP LEVEL TOP TEN Code Description None Total 4461 Health and personal care Clothing Grocery Electronics and appliance 4539 Other miscellaneous store retailers Direct selling establishments Gasoline stations Automobile dealers Specialty food Sporting goods, hobby and musical instrument N/A ALL OTHER INDUSTRY GROUPS IN THIS SECTOR ,740 Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 10
11 Online Supply & Demand (2016) ONLINE JOB POSTINGS A Closer Look at Skill Level Required in Job Postings (Sector vs. Ottawa overall) The chart below shows skill level requirements for jobs posted in this sector versus those posted for all Ottawa sectors. Source: Vicinity Jobs 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 11
12 ONLINE JOB SEEKER PROFILES In October 2016, Ottawa Employment Hub subscribed to newly published data providing insight into local labour supply. This information is only available from October 2016 onward so we provide below the data for Q The numbers shown reflect Job Profiles that were either added or updated within a 30-day span by job seekers living in Ottawa between October and December A Closer Look at Occupations of those with Active Job Profiles The chart below shows number of job seeker profiles by occupation group most recently worked in. Source: Vicinity Jobs 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 12
13 In the News Highlights GAINS Feb 1, 2017 Newswire Lowe's Canada to Hire 2,800 Employees in First Half of 2017 to Support its Lowe's Banner Big Box Stores Lowe s announced it will host its Regional Hiring day on Saturday February 25 th at locations across Canada where about seasonal positions will be opened up. The seasonal positions are created to meet demand for the spring and summer when customers take on their summer projects and start planting their gardens. The seasonal positions will last from March to September and positions range from: customer service associates, cashiers, loaders, stockers, sales specialists and assemblers and individuals interested in horticulture who can work in the garden centre. Jan 26, 2017 Marketwired Giant Tiger announces opening of its 16 th location in Ottawa/Gatineau Giant Tiger is set to open a new store in the Ottawa area. This will be the 16 th store in Ottawa and the 232 nd store in Canada. The new store will occupy 23,000 ft 2 in retail space, located on Merivale Road and it is set to open on July 8 th As a cross Canada discount retail chain, Giant Tiger has shown itself to be the discount store of choice for Canadians, being in continual operation since LOSSES Feb 3, 2017 Ottawa Business Journal Ottawa s locally owned retailers fighting a losing battle to stay viable Explains the many difficulties that small independent Ottawa retailers are facing. Shops that have been open for many decades are now having to close their doors as they are being squeezed out by bigger chains and online shopping. Elgin Sports, as an example, had seven retail locations across Ottawa in the 1980s, and is now shutting its last location. Owner Karl Kofmel noted that spaces that had previously been good for retail such as Bank and Elgin are now not so conducive for business. Carleton University business Professor Ian Lee gave the advice that local retailers need to compete in under-served markets in the Ottawa region and avoid opening that have large competitors such as sporting goods or electronics. Jan 27, 2017 CBC News Struggling HMV Canada goes into receivership, set to close After struggling for the last couple of years, HMV is set to close all of its store by April 30 th, This move will affect all 104 locations and 1,340 employees who are mostly in its retail. TRENDS/PROJECTIONS Jul 2016 McKinsey & Company Where machines could replace humans and where they can t (yet) Some segments of retail and wholesale trade have a high potential for automation, specifically those that have highly predictable and repetitive tasks, such as packaging, collecting and processing data. Accountants, bookkeepers and auditing clerks have a very high chance of being automated (calculated at 86% with today s technology) because of the highly predictable nature of these tasks. However, within this sector, certain occupations have less of a capacity to be automated. Occupations such as management need proper goal setting and expert knowledge application - activities that automated technology cannot do. Similarly, salesperson occupations that require high degrees of social and emotional intelligence are not likely to be automated. Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 13
14 Sample Report Industry Summaries Below is a sample report that can be requested for any industry at the 3- or 4-digit (subsector or industry group) level. Some of these may also be available on the Labour Market Ottawa web portal. Industry Summary for Grocery 9, % Regional Trends Jobs (2015) % Change ( ) 26% below National average Nation: -2.1% Region 2011 Jobs 2016 Jobs Change % Change Ottawa 8,961 10,026 1, % Ontario 136, ,513 14, % Canada 431, ,631-9, % Top Occupations Employed by this Industry Description Employed in Industry (2015) % of Total Jobs in Industry (2015) Store shelf stockers, clerks and order fillers 2, % Cashiers 2, % Retail sales supervisors % Retail salespersons % Retail and wholesale trade managers % Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 14
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