Retail sales fell 0.8% to $66.1 billion in May. Sales fell in eight of nine sub-sectors, led by declines in food and beverage retailers.
Core retail sales, which excludes petrol stations, fuel vendors, car and parts dealers, fell 1.4 percent in May.
In terms of volume, retail sales fell 0.7% in May
After a 1.2% increase in April, core retail sales fell 1.4% in May due to lower revenues across all core retail sub-segments, with the largest drop in sales at food and beverage retailers (-1.9%). Sales at food and beverage retailers declined due to lower sales in supermarkets and other grocery retailers (excluding retailers) (-2.1%) and retailers of beer, wine and liquor (-3.3%)).
Sales declines were also reported in May at retailers of building materials and garden equipment and supplies (-2.7%) and retailers of general goods (-1.0%). Sales at car and parts dealers are rising, while sales at petrol stations and fuel vendors are falling.
The only increase in retail sales in May was seen at auto and parts dealers (+0.8%), increasing for the third time in four months. Higher sales at new car dealers (+1.6%) led the increase. Gains by used car dealers (+1.8%) were offset by lower sales at other car dealers (-5.0%), auto parts and accessories and tire retailers (-3.4).%).
Sales at petrol stations and fuel vendors fell (-0.6%) in May. In terms of volume, sales at petrol stations and fuel vendors increased by 1.0%.
Retail sales in nine counties fell in May. The largest decline was observed at the county level in Alberta (-2.5%), due to lower sales at car and parts dealers..
Monthly retail sales index in Canada in Canadian dollars
“CAD m/m” refers to the monthly percentage change in the total value of retail sales in Canada. This economic indicator measures the level of consumer spending on retail goods and services in a given month compared to the previous month.
The retail sales report provides insight into the strength of consumer demand, which is the main driver of economic growth. It reflects the purchasing behavior of households and their confidence in the general economy. The retail sector of Canada encompasses a wide range of industries, such as automotive, clothing, electronics, furniture and general merchandise.
The percentage positive change in retail sales in Canadian dollars per month indicates an increase in retail sales compared to the previous month, indicating higher consumer spending and potential economic growth. Conversely, a negative percentage change means a decline in retail sales, indicating weaker consumer demand and a potential economic downturn.
Canadian dollar retail sales data is closely monitored by economists, analysts, and policymakers as it provides valuable information about the health of the retail sector and overall economic activity in Canada. It can affect market expectations, consumer sentiment and monetary policy decisions by Canada Bank.
It is important to note that the deadline for knowledge is September 2021, and there may have been updates or changes to this economic indicator since then. For the most accurate and up-to-date analysis and data on retail sales in Canadian dollars per month, it is recommended to consult reliable sources and economic reports from reputable institutions.
Statistics Canada provides an advance estimate of retail sales, indicating that sales fell 0.3% in June. Due to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses from 50.3% of the companies surveyed. The average final response rate of the survey over the past 12 months was 90.0%.
Factors affecting monthly changes in Canadian retail sales
Several factors can affect monthly changes in Canadian retail sales. Here are some of the key factors that can have an impact:
Consumer confidence: Consumer sentiment and confidence play an important role in driving retail sales. When consumers are optimistic about the economy, their financial situation and their future prospects, they are likely to increase their spending on retail goods and services..
Employment and income levels: Labor market status and income levels directly affect consumer spending. When employment rates are high, and incomes are rising, consumers generally have more income that can be spent on retail purchases, leading to increased retail sales..
Interest rates: Interest rates set by the Canada Bank can affect retail sales. Lower interest rates can encourage borrowing and make purchase financing affordable for consumers, spurring retail spending. Conversely, higher interest rates can increase borrowing costs, which can discourage consumer spending.
Inflation and cost of living: When inflation is low and the cost of living is manageable, consumers may have greater purchasing power, which can positively affect retail sales. On the other hand, rising prices and increasing the cost of living may limit consumer spending and negatively affect retail sales.
Seasonal factors: Seasonal changes can significantly affect retail sales, especially in sectors such as apparel, tourism, and outdoor leisure products. For example, sales tend to rise during the holiday season or during certain events such as back-to-school shopping.
It is important to note that these factors interact with each other and can have direct and indirect effects on retail sales. The relative strength or weakness of these factors can vary, leading to fluctuations in monthly retail sales figures
In British Colombia, retail sales fell 1.3% in May, driven by lower sales at food and beverage retailers. In the greater Vancouver Census Area, sales fell 1.2%.
The only regional increase in retail sales was observed in May in Nova Scotia (+0.6%). This increase came as a result of higher sales at car and spare parts dealers.
Ecommerce Retail Sales in Canada
On a seasonally adjusted basis, e-commerce retail sales fell 3.6% to $3.9 billion in May, accounting for 5.9% of total retail, compared to 6.1% in April.
