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%.
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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.
