Conseil québécois du commerce de détail

Conseil québécois du commerce de détail

March 13, 2005 13:30 ET

CQCD/The shopping habits of Quebecers in 2005: Are Quebecers still confident about their financial situation?


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CONSEIL QUEBECOIS DU COMMERCE DE DETAIL

MARCH 13, 2005 - 13:30 ET

CQCD/The shopping habits of Quebecers in 2005: Are
Quebecers still confident about their financial
situation?

MONTREAL, QUEBEC--(CCNMatthews - March 13, 2005) - The Conseil quebecois
du commerce de detail/Retail Council of Quebec (CQCD) released on March
13, 2005 the results of a survey conducted on its behalf by Groupe
Geocom on consumer spending trends in Quebec.

Quebec households' perception of their financial situation

The last 12 months

The survey reveals that 84% of Quebec households consider their
financial situation to have improved or remained stable over the last 12
months. This figure compares with 78% in March 2004.

The other 16% of households indicated that their financial situation had
deteriorated over the last 12 months. Among the reasons mentioned were
an increase in the cost of living (49%), a deterioration in working
conditions (31%) and job loss (10%).

The next 12 months

Despite a slight decline in their financial situation over the last 12
months, Quebec households remain optimistic, with 91% expecting their
financial situation to remain the same (61%) or even improve (30%). Only
6% of households expect to see a deterioration.

"We can conclude that for many households, the perception of their
financial situation over the next 12 months should improve," notes Mr.
Gaston Lafleur, president of the CQCD.

Young couples and more affluent households are the two main groups
expecting to see an improvement in their financial situation over the
next 12 months.

Quebec's financial situation

Quebec households are much less optimistic with regard to Quebec's
financial situation. In fact, 36% of households believe that Quebec's
financial situation will deteriorate over the next 12 months, compared
with 14% who expect it to improve.

Quebecers over 50 years of age and those with a household income of less
than $50,000 are the two main groups expecting to see a decline in
Quebec's financial situation.

Spending intentions

Major purchases

The survey reveals that 25% of households intend to make a major
purchase in the next 12 months. Households expecting an improvement in
their financial situation account for the highest proportion of major
purchases planned. On the other hand, 15% of households that expect
their financial situation to deteriorate are nonetheless planning to
make a major purchase.

Automobiles are in first place among the major purchases planned: 12% of
Quebec households intend to buy an automobile in the next 12 months;
houses and appliances come second (6%), followed by furniture (5%).

Young people under 45 and more affluent households are the two main
groups planning to make major purchases.

Other consumer goods

With regard to spending intentions for various consumer goods, the
following are the percentages of Quebec households that intend to spend
more compared with those that intend to spend less for certain goods:



-hardware and renovations (15%)
-household items (9%)
-shoes and clothing (7%)
-entertainment (6%)
-trips (3%)

They plan to spend less on:

-restaurants (-12%)
-audio or video equipment (-11%)
-toys (-8%)


The survey polled a random sample of 1003 Quebecers between January 15
and February 4, 2005. It has a margin of error of 3.2% 19 times out of
20.

"All in all, Quebec households will be more selective in their spending
for the next 12 months. Notwithstanding their optimism concerning their
financial situation, we are starting to see the signs of the weight of
their indebtedness on their disposable income and their choice of
consumer products," concludes Mr. Gaston Lafleur, president of the CQCD.

A photo is available on CCNMatthews' website at the following address:
http://www2.ccnmatthews.com/database/fax/2000/G.lafleur.jpg

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Source:
    Conseil quebecois du commerce de detail
    Retail Council of Quebec
    www.cqcd.org
    or
    Conseil quebecois du commerce de detail
    Retail Council of Quebec
    Gaston Lafleur, President
    (514) 842-6681 ext. 200
    (800) 364-6766
    or
    EXCEPTION for March 13:
    Hotel Fairmont le Reine Elizabeth
    Salon Matapedia
    (514) 861-3511
    (800) 441-1414
    Telephone:from 1:00 p.m. to 3:00 p.m.