Canada’s retail trade is coming back with a vengeance following the coronavirus pandemic as more regions began easing lockdown restrictions across the country. Data released this morning by Statistics Canada identified that retail sales grew to $53.0 million in June, up 23.7% from the May figure of $42.8 billion.
Further, retail sales during the month of June were up 1.3% from that of February’s figures, showing gradual grow from the norm following three month of a pandemic-induced cratering of activity.
Growth was primarily lead by motor vehicle and parts dealers, along with clothing and clothing accessories stores, a result of pent up demand following lockdown requirements. The former saw a 53.4% increase in sales, while the latter increased 142.3%.
Further, sales were up in all sub-sectors, an excellent sign for the economy as a whole. Further, eight provinces in total posted a rebound to pre-pandemic levels, with Ontario and Quebec leading the charge at 33.8% and 23.5% one month increases in sales. Notably, Nova Scotia came in third at 23.4%, with the “cross country average” being skewed to 23.7%, a result of the performance seen in Ontario.
However, retail sales for the second quarter as a whole were down 13.3% compared to the first quarter, simply a result of the timing of lockdowns across the country.
One of the big winners of the pandemic, retail e-commerce sales, saw its portion of sales across the country decline on a monthly basis as more brick and mortar stores resumed operations. Online sales accounted for 5.4% of trade in June, with the segment remaining up 70.4% on a year over year basis.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.