Canadian retail sales demonstrated unexpected strength in September, rising 0.4% to reach $66.9 billion, according to the latest data from Statistics Canada. This increase, which matched economists’ expectations, was primarily fueled by robust performance in the food and beverage sector. Retail sales meanwhile increased by 0.8% in volume terms.
Core retail sales, which exclude volatile components such as gasoline stations and motor vehicle dealers, surged by 1.4% in September, rebounding from a 0.5% decline in August. This core growth was largely attributed to a 3.0% increase in sales at food and beverage retailers, with supermarkets and grocery stores seeing a 3.3% uptick.
The beverage sector showed particular vigor, with beer, wine, and liquor retailers reporting a 4.4% increase in receipts, marking their first growth in three months. Building material and garden equipment dealers also contributed to the positive trend, posting a 3.0% sales increase.
However, the retail landscape wasn’t uniformly positive. Gasoline stations and fuel vendors experienced a 2.3% decline in sales, their fifth consecutive monthly decrease, although volume sales in this category rose by 3.2%. The motor vehicle and parts sector also saw a 0.7% dip, with new and used car dealers facing decreased sales.
Geographically, retail performance varied across Canada. Alberta led provincial gains with a 2.3% increase, while Ontario recorded a slight 0.1% decrease. Quebec’s retail sales grew by 0.6%, with Montreal specifically seeing a 0.3% rise.
E-commerce continued its upward trajectory, with seasonally adjusted sales climbing 3.3% to $4.1 billion, now accounting for 6.2% of total retail trade.
Looking ahead, Statistics Canada’s preliminary estimate suggests a further 0.7% increase in retail sales for October, although this figure is subject to revision.
The economy posted overall growth of 0.9% in retail sales for the third quarter, coupled with a 1.3% increase in volume terms.
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.
