Motor vehicle sales drive August growth, but some core retail sectors, like food, saw declines
Statistics Canada reported that retail sales rose 0.4 percent to $66.6bn in August, with increases recorded in four out of nine subsectors.
This growth was largely driven by motor vehicle and parts dealers.
Core retail sales, which exclude gasoline stations, fuel vendors, and motor vehicle and parts dealers, declined 0.4 percent in August. Retail sales volume overall increased 0.7 percent during the same period.
Motor vehicle and parts dealers saw the most substantial increase in August, with sales up 3.5 percent. This growth was led by new car dealers, where sales rose 4.3 percent, followed by used car dealers with a 2.1 percent increase.
Although other motor vehicle dealers recorded a 0.3 percent decline, automotive parts, accessories, and tire retailers offset this with a modest 0.4 percent gain.
Sales at gasoline stations and fuel vendors dropped 2.7 percent in August, with a 2.1 percent decrease in volume terms.
Additionally, core retail sales fell by 0.4 percent, following two months of consecutive gains.
This decline in core sales was largely attributed to food and beverage retailers, where sales fell 1.5 percent, impacting all four store types within this category, including a 1.9 percent decrease at supermarkets and other grocery retailers (excluding convenience stores).
Furniture, home furnishings, electronics, and appliance retailers also experienced a decline, with sales down 1.4 percent in August.
In contrast, the sporting goods, hobby, musical instrument, book, and miscellaneous retailers category recorded the largest increase in core retail sales, up by 0.9 percent.
Retail sales rose in seven provinces in August. Ontario experienced the largest provincial increase at 0.9 percent, with motor vehicle and parts dealers contributing significantly to this rise. In the Toronto census metropolitan area (CMA), sales increased 0.6 percent.
In Quebec, retail sales climbed 1.0 percent, with the Montreal CMA seeing a more pronounced rise of 1.5 percent. Alberta, however, recorded the largest provincial decrease, down 1.1 percent, led by lower sales at food and beverage retailers.
Retail e-commerce sales in Canada fell 2.5 percent to $3.9bn in August, making up 5.9 percent of total retail trade, a slight decrease from July’s 6.1 percent.
Statistics Canada also provided an advance retail sales estimate for September, suggesting a further 0.4 percent increase. This preliminary figure, based on responses from 61.1 percent of surveyed companies, is subject to revision.
