Despite challenging times in the global economy, Alberta continues to be a retail powerhouse.

As Alberta's Retail Week winds down from a flurry of activities in Banff, Calgary and Edmonton earlier this month, numbers released by Retail Alberta show the sector is weathering consumer wariness that has plagued other parts of the country.

"Retail as an industry is the single largest employer in Alberta with more than 211,000 Albertans working in retail," says John Wojcicki, president and CEO of Retail Alberta. "It's one of those industries that you can find in virtually every corner of the province."

Though consumer confidence in some parts of Canada appears to be stung by high energy prices, the aftermath of two major hurricanes south of the border and the potential of higher interest rates, Alberta's retail sector remains strong, figures show.

Jack Dagley, Business Edge
Audreys Books co-owner Steve Budnarchuk is celebrating his 30th year of operation in his downtown Edmonton location.

In 2004, the national average for retail sales growth was five per cent, says Wojcicki. "In Alberta, that number was 11.2 per cent. In 2005, the (same) national average as of June was eight per cent. In Alberta, it was 13.4 per cent."

Despite those strong figures, Kevin Evans, the Retail Council of Canada's vice president, Western Canada, says retail is still seen as "the Rodney Dangerfield of the economy. It gets no respect," he says.

That's why events such as Alberta's Retail Week, held from Oct. 3-7, are important, says Evans. Not only does it shine the spotlight on the industry by showing the role it plays in the community and the economy, it also gives retailers a leg up on how to stay ahead of the game, says Evans.

For example, Evans points to a session held both in Calgary and Edmonton called Understanding the Relationship Between Women and Brands, as a way that retailers can be on the cutting edge of the retail scene.

Presented by LeoShe, a division of the global advertising agency Leo Burnett, the session unveiled information gleamed from an in-depth exploration of women and their homes.

That data, says Evans, looked into the forces shaping women's lives and provides retailers with the knowledge they need to segment their customers and create an in-store feeling that will inspire them to buy.

For instance, LeoShe categorized women into four groups: House Proud, Keeping Up With the Joneses, Treading Water and Keep it Simple.

House Proud, the largest segment at 37 per cent, goes for the Martha Stewart approach with high standards.

Keeping Up With the Joneses only targets 12 per cent of the female marketplace, but includes those who have Stewart's standards but feel they aren't able to keep up with them.

Those in the Treading Water category, 29 per cent, go for the Roseanne Barr approach - they've basically given up and are willing to accept practical standards though they're not even reaching those levels.

Lastly, there's the Keep it Simple group, at 22 per cent, who are best described as the wife of Ray Romano from the TV sitcom Everybody Loves Raymond: They have very practical standards and achieve a different kind of perfection.

"Lots of retailers, they'll have their area of expertise, but especially smaller retailers, they can't be experts in everything that we do," says Wojcicki. "That's why we try to bring the experts to the retailer."

Alberta, despite its penchant for retail on a gigantic scale such as West Edmonton Mall, still has room for the small retailer, says Paul McElhone, executive director of the Canadian Institute of Retailing and Services (CIRAS).

"The lion's share of retail is still independently owned retail and it is the largest growing sector of the retail industry. Retail today is being polarized between true specialty retail and deep discount. There are fewer retailers in the middle category," says McElhone.

The small players who have carved out their niche and become successful are a big reason why retail in Alberta is so strong, adds McElhone.

Examples of small businesses that have gone on to bigger heights include The Brick, Liquor Depot, The Running Room and Trail Appliances.

But not all small retailers need to expand to a national level. Audreys Books, a landmark Edmonton retailer that is celebrating its 30th anniversary in business, is proud of its role as a driver of small business in the city's downtown sector.

"We are committed to downtown, an area that continues to need a store like ours. The large-format retailers focus on the suburbs but this (downtown) is still a significant market that needs to be served. We're often very busy because we're a destination store. We cater to considerably more than just the walk-in traffic," says co-owner Steve Budnarchuk.

"In order to remain competitive, retailers like us have to look at every opportunity to improve our business skills. Events like retail week are tailor-made for small retailers and are an opportunity for us (and our colleagues) to take advantage of the professional development components," notes Budnarchuk.

Audreys, employing between 18 to 20 people, has always tried to stay in the forefront, adds Budnarchuk. "The whole focus of the best retailers is on the customers. That's what we try to do and our frontline staff is also responsible for purchasing books for the store. Our staff makes selections based on their ongoing conversations and interaction with the public. We have a team purchasing culture and they all have input. We're responding to the market constantly and that's as forward as you can get."

Customer service is what has also captured the attention of Robert Dutton, president and CEO of Rona Inc., the recipient of this year's CIRAS Henry Singer Award, recognizing excellence and leadership in the retail and service sectors, and given to those who have made significant contributions to the community as a whole.

At an award presentation in Edmonton, Dutton talked about how the retail scene has changed and why the focus is now returning to the customer - just like small retailers, such as Audreys, have focused on.

"Do you remember the 4Ps? Product, price, placement, promotion. These were the four pillars of marketing for many, many years. In retrospect, it's striking to note that these four pillars completely ignored the consumer and were entirely producer-focused," says Dutton.

"To succeed 20 or 30 years ago, retailers had to effectively represent manufacturers by promoting their products to consumers.

Today, they have to effectively represent consumers by promoting their interests to manufacturers.

In other words, they've (retailers) got to stop focusing on the product and start focusing on the customer. They can't limit themselves to the 4 Ps."

Instead, says Dutton, today's answer is to look at the 4 Cs: The customer and their needs and desires; the cost of consumption, including the time and effort the customer puts into it; convenience for the customer; and communication with the customer.

In other retail news, the 2005 Retail Legend award was presented to Darrell Derk of Derks Fine Group of Companies of Edmonton. This award is given to a retailer who has been in business for 30 or more years, has shown company growth through number of locations, staff, innovations, and is actively involved in the community.

The 2005 Retail Legend in the Making award was presented to Steve Sosa of Sosa Original Clothing Inc. of Calgary. This award is presented to a retailer who has been in business for 10-15 years, has proven consistent growth through number of locations, staff, innovations, and is dedicated to improving his or her community.

Both winners were selected by Retail Alberta's board of directors.