Retailers are leaving Canada

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Target is one of three big retailers announcing closures this year.

Sony says its closing all of its 14 retail stores across Canada within the next two months.

There are a few stores in our area — one in Niagara Falls on Lundy’s Lane and the other in Mississauga. There are also a couple in Toronto. There will be approximately 90 layoffs.

This closure follows on the heels of Mexx Canada’s announcement that it’s liquidating 95 stores by the end of February. The Dutch-based retailer declared bankruptcy last month.

Canada’s economy has had a rough start to the year. And a big part of that is due to the decline in oil prices. And now, Canada’s finance minister says the “economic uncertainty” will delay the federal budget.

The price of West Texas Intermediate crude was down over two dollars a barrel again on Thursday. The current downward spiral over the past few months represents the third-largest decline in the last four decades.

Gas prices at the pumps this evening have gone below 80 cents at some stations. At Pioneer and Husky on Upper James Street in Hamilton, they’re as low as 79.3 and 79.6 cents per litre respectively. Finance Minister Joe Oliver says these low oil prices are hurting the bottom line of oil companies, which leads to decreased investment and less employment. Tthat in turn reduces tax revenue both provincially and federally. However, Oliver goes on to say that while these are tough times for the energy sector, there’s still no need to be pessimistic.

Oliver was clear that despite the stress put on the economy by falling oil revenues, his government will not be implementing any tax increases. If anything, he’s looking at ways to reduce them. He re-iterated that the low oil prices are only temporary and that there isn’t any need to panic because at some point, the prices will move up given the long term demand for energy.