Retail sales rise in July, led by motor vehicle and parts dealers

Retail sales in Canada increased by 0.9 percent to $66.4bn in July, according to Statistics Canada.  

This growth was driven by gains in seven of nine subsectors, with motor vehicle and parts dealers leading the increase. 

Core retail sales, which exclude gasoline stations and fuel vendors as well as motor vehicle and parts dealers, also rose by 0.6 percent in July. In terms of volume, retail sales climbed by 1.0 percent. 

The motor vehicle and parts dealers sector experienced the largest increase in July, up by 2.2 percent. The rise was mainly driven by new car dealers, which saw sales increase by 2.3 percent. Other motor vehicle dealers also saw significant growth, with a 5.6 percent increase.  

Sales at used car dealers declined by 0.8 percent, but this drop was offset by a 1.0 percent increase at automotive parts, accessories, and tire retailers. 

Gasoline stations and fuel vendors saw a 0.6 percent decline in sales in July. In volume terms, this decrease was 1.7 percent. 

Core retail sales continued their upward trend, rising by 0.6 percent for the second consecutive month. Higher sales were reported in several areas, including food and beverage retailers and general merchandise retailers, both up by 0.8 percent.  

Within food and beverage retailers, supermarkets, and other grocery retailers (excluding convenience stores) saw a 1.2 percent increase, with specialty food retailers and convenience retailers also posting gains. 

Health and personal care retailers saw a 1.2 percent increase in July. However, building material and garden equipment and supplies dealers experienced a 1.4 percent decrease in sales, marking the largest decline in core retail sales for the month. 

Retail sales increased in eight provinces in July, with Quebec recording the largest provincial increase at 1.5 percent. In the Montréal census metropolitan area (CMA), sales rose by 2.0 percent. Alberta also posted strong growth, with a 2.0 percent increase in retail sales, led by motor vehicle and parts dealers. 

Ontario experienced the largest provincial decline in July, with retail sales down by 0.2 percent, primarily due to lower sales at food and beverage retailers. In the Toronto CMA, sales fell by 1.2 percent. 

Seasonally adjusted retail e-commerce sales increased by 3.4 percent to $4.1bn in July, accounting for 6.1 percent of total retail trade, up from 6.0 percent in June. 

An advance retail sales estimate from Statistics Canada suggests that retail sales increased by 0.5 percent in August.  

However, this figure is subject to revision as it is based on preliminary data, with responses from 52.4 percent of companies surveyed. The average final response rate over the past 12 months has been 89.4 percent.