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Sales slump after PST hike

Manitoba retailers reported a 4.1% decrease in sales from June to July. That is the largest drop of all provinces. Sales rose in six provinces and nationally, retail sales saw a 0.6% increase.
Manitoba retailers reported a 4.1% decrease in sales from June to July. That is the largest drop of all provinces. Sales rose in six provinces and nationally, retail sales saw a 0.6% increase.

Manitobans spent a lot less in stores this past July.

Statistics Canada numbers released Tuesday shows Manitoba retailers reported a 4.1% decrease in sales from June to July. That is the largest drop of all provinces. Sales rose in six provinces and nationally, retail sales saw a 0.6% increase.

“It’s been tough, really tough to maintain the sales we would like to have,” said John Salgueiro, president of JS Furniture Gallery. “We are running more sales than normal because we have to.”

Around $61 million less was spent in July compared to the previous month.

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“I go out a lot less shopping for stuff,” said Shelley Mcconnell. “It’s just too hard on a single pension.”

Stats Can notes that on July 1 Manitoba’s provincial government increased the PST from 7 to 8%. Despite the decline in sales, the NDP government stands by its decision to raise the tax.

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“You just have to look at the construction taking place pretty well throughout the province to see that the economy is doing pretty well,” said infrastructure minister Steve Ashton.

The opposition Progressive Conservative party claims the 4.1% decrease is the largest drop in month to month retail sales since Statistics Canada started keeping the record in 1991.

Manitoba PC leader says retail sales drop is largest since records began in 1991. Tamara Forlanski

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