Market News

U.S. retailer buyout activity increasing in Canada

Without a doubt, we are really seeing the Americanization of the Canadian retail sector. And with the world awash in private-equity money and cheap credit, more potential foreign buyers have put Canadian retailers on their radar screens. In the past six years, foreigners have bought some of Canada's biggest and best-known retailers. Much has obviously changed since Wal-Mart entered Canada in 1994, not least that Canadians have learned to expect better from their retailers. Now that shoppers have become better served, investors are starting to benefit as well. Thanks to the strength of the Canadian economy, retail has ended its long drought as one of Canada's most moribund sectors for investors. The retailers and buyout firms see a Canadian economy that is strong - and possibly more resilient than the economy of the United States. The retail sector is also less competitive than it is in the U.S., which has more stores per capita. All that is missing are Canadian buyers. There are few private-equity firms of any consequence in Canada. National Post - 12/23/06 Prediction: Supermarkets to accommodate drive-through shoppers Source: Vancouver Sun Expect a new kind of fast-food in 2007. This year a major supermarket group will introduce a drive-through concept that will allow working moms and other time-challenged consumers to buy prepared and ready-for-microwave meals from the comfort and security of their ride. That prediction comes from Harry Balzer, vice-president of the consumer marketing research firm NPD Group and an expert on food and diet trends who has studied North American eating habits for 25 years. Vancouver Sun - 01/08/07 Source: Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc.