Canada retail sales grow see grow 0.4% in September led by food and beverage sector

In September, Canadian retail sales saw an increase of 0.4%, reaching $66.9 billion, with gains observed across six of nine subsectors. Food and beverage retailers spearheaded this growth.

Core retail sales, which exclude sales from gasoline stations and fuel vendors as well as motor vehicle and parts dealers, rose by 1.4% in the same month. When measured by volume, retail sales experienced an uptick of 0.8%.

The third quarter of the year reported a 0.9% rise in retail sales, and a more pronounced increase of 1.3% when considering volume alone.

After a dip in August, core retail sales rebounded in September, led by a 3.0% rise at food and beverage retailers. Supermarkets and other grocery stores, not including convenience stores, saw a significant recovery with a 3.3% boost in sales after August’s 1.9% fall. Contributing to this sector’s performance were beer, wine, and liquor stores, which, after a three-month slump, marked a 4.4% increase in receipts.

Building material and garden equipment and supplies dealers also reported a 3.0% surge in sales for September.

The only subsector to record a decline in core retail sales was that of clothing and related accessories, which saw a 0.8% drop.

Conversely, gasoline stations and fuel vendors witnessed the most notable decrease in retail sales, down by 2.3% for the fifth consecutive month. However, in volume terms, these sales actually went up by 3.2%.

Motor vehicle and parts dealers also faced a downturn, with a 0.7% decrease in sales, primarily due to lower sales at new car dealers, followed by used car dealers and other motor vehicle dealers. Nonetheless, automotive parts, accessories, and tire retailers reported a positive shift with sales climbing 4.2%.

Retail sales rose in five Canadian provinces in September, with Alberta leading the way with a 2.3% increase, largely fueled by motor vehicle and parts dealers. Quebec saw a modest 0.6% growth, with the Montréal area experiencing a 0.3% uptick. Ontario, however, encountered a slight retrenchment in retail sales by 0.1%, with Toronto’s sales 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 the total retail trade. This is a slight rise from the 6.0% share recorded in August.

Looking ahead, an advance estimate by Statistics Canada indicates a potential 0.7% rise in retail sales for October. However, this preliminary figure is subject to revision, being based on 58.9% of the survey responses, compared to the 88.9% average final response rate over the past year.

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