Canadian retail sales grow 0.4% in September led by food and beverage sector By Investing.com
In September, Canadian retail sales rose 0.4%, to $66.9 billion, with gains seen in six of the nine subcategories. Food and beverage outlets led this growth.
Core sales, which exclude sales at gas stations and fuel retailers and auto and parts dealers, rose 1.4% in the same month. Measured by volume, retail sales rose 0.8%.
The third quarter of the year reported a 0.9% increase in retail sales, and a more prominent 1.3% increase in volume alone.
After dipping in August, core retail sales rebounded in September, led by a 3.0% increase in food and beverage retailers. Supermarkets and other grocery stores, excluding convenience stores, saw a sharp recovery with a 3.3% increase in sales after August’s 1.9% drop. Contributing to the performance of this sector were stores that sell beer, wine and liquor, which after a three-month decline, saw a 4.4% increase in receipts.
Retailers of building materials and garden supplies and equipment reported that inventory sales rose 3.0% in September.
The only sub-sector to record a decline in core sales was that of clothing and accessories, which fell by 0.8%.
On the other hand, gas stations and oil retailers saw the most significant decline in retail sales, down 2.3% for the fifth month in a row. However, in volume terms, these sales actually increased by 3.2%.
Car and parts dealers also faced a decline in car sales, by 0.7% due to a drop in new car purchases, followed by used car dealers and other car dealers. However, auto parts, accessories, and tire retailers reported a positive change where sales increased by 4.2%.
Retail sales rose in Canada’s five provinces in September, with Alberta leading the way with a 2.3% increase, driven mainly by auto and metal dealers. Quebec saw modest growth of 0.6%, with the Montreal area up 0.3%. Ontario, however, experienced a slight drop in retail sales of 0.1%, with sales in Toronto remaining flat.
E-commerce retail sales in Canada also experienced growth, with a seasonally adjusted increase of 3.3% to $4.1 billion in September, making up 6.2% of total retail sales. This is a slight increase from the 6.0% share recorded in August.
Looking ahead, Statistics Canada’s preliminary estimate shows a 0.7% increase in retail sales in October. However, this initial figure can be revised, based on 58.9% of survey responses, compared to the final response rate of 88.9% last year.
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