http://www.cbc.ca/money/story/2009/02/23/retail.html
Summary:
The article “December retail sales Tumble” is mainly about the decline in sales in Canada. Retail activity in December tumbled to its biggest drop in over 15 years. During December 2008, there was a 5.4 per cent sales drop which surpassed the 4.5 per cent sales drop seen in January 1998. Some say the cause of this massive tumble is because of a massive ice storm that hit much of Canada. Among all the provinces and territories, Alberta was hit the hardest. It was hit with a 6.2 per cent drop in sales. During this month the automotive sector’s retail sales fell 1.8 per cent. Sales at clothing and accessories stores fell 3.7 per cent. Other sales such as sporting goods, electronics, furniture, etc declined by more than 2 per cent. It is also believed that this decline may continue.
Reflection:
One connection that I had made between this article and chapter 15 is comparing financial data (which I have learned in section 15.2). In section 15.2, I have learned how to compare financial data by comparing the financial data of a company on two different years and see the difference between them. This is similar to what is described in the article. The reporter of the article is using the financial data of the sales of two different months to see how much the sales of December 2008 had declined by; therefore, it is similar to what I am learning in section 15.2.
Connection:
I believe that the recession affect the decline in sale because many people are afraid of the unstable economy. I also believe that the ice storm may have played a role in this declining, but as a big of a role as economic storm. Comparing financial data is extremely useful to all businesses. This gives owners an idea on how well their business is doing and how much progress they are making. Comparing financial Data can tell owners whether their sales, profit, expense, etc have increased or decreased compared to the previous year or fiscal periods.
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I also believe that the decrease in sales was due to the snow storm that hit most of Canada. We've never had a storm this big in a few years. The time that the snow storm came upon us followed by the huge decline in sales obviously cannot be a coincidence. I think that the reason the storm hit the economy this bad is because a lot more people are afraid of going outside into the freezing weather and would rather stay at home. This, of course is a retailers worst nightmare because money isn't being earned nor spent. Secondly, I agree that without comparing financial data, discovering the losses of your company could slip right past your nose without you knowing it and when you discover it, it might be too late.
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