OTTAWA, Ontario, Canada – Retail Sales in Canada increased by 0.6 percent in June compared with the previous month, according to Statistics Canada. It is better than the expected gain of 0.5 percent but retail sales are up by just 2 percent compared with a year ago, vs. an average increase of 5.6 percent since the start of 2022. Sales at gasoline stations (+5.8 percent) and motor vehicle and parts dealers (+3.9 percent) increased, while clothing and clothing accessories stores (-1.2 percent) and electronics and appliance stores (-1.7 percent) decreased. On a year-over-year basis, sales were up in 7 of 11 subsectors, led by gasoline stations (+34.3 percent) and motor vehicle and parts dealers (+8.7 percent). Sales declined at clothing and clothing accessories stores (-4.9 percent), sporting goods, hobby, book and music stores (-4.0 percent) and electronics and appliance stores (-2.3 percent). This is the first time in retail sales history, apart from the pandemic impacted 2020 and 2021, that sales at clothing and accessories stores have shown negative year-over-year growth for five months in a row, said the report. Excluding motor vehicles and parts dealers, retail sales were up 0.1 percent compared with May. Sales at gasoline stations (+7.1 percent) were up for the fourth consecutive month, the report said. Sales were down at electronics and appliance stores (-1.5 percent), building material and garden equipment and supplies dealers (-1.1 percent) and furniture and home furnishings stores (-0.9 percent). Excluding motor vehicles and parts dealers and gasoline stations, retail sales were down 0.6 percent. Sales in volume terms increased by 0.2 percent compared with the previous month. While retail sales have been volatile this year, they continue to trend below their pre-pandemic levels, said the report. In real terms, retail sales were down 2.1 percent compared with February 2020. Sales in constant dollars were down in 8 of 11 subsectors. Clothing and clothing accessories (-7.7 percent) and sporting goods, hobby, book and music stores (-10.7 percent) have shown consistent weakness since the start of the year, said the report. With inflation factored in, retail sales growth is virtually non-existent, it added. In volume terms, retail sales were up 1.8 percent compared with a year ago. Nine of 11 subsectors reported higher sales volumes. Gasoline stations (+25.5 percent) and motor vehicle and parts dealers (+5.7 percent) led the gains. Real retail sales were down 5.1 percent compared with a year ago. Sales volumes were down in 7 of 11 subsectors. Clothing and clothing accessories stores (-10.3 percent) and sporting goods, hobby, book and music stores (-13.0 percent) posted the largest declines in real terms. The report said, only three provinces reported increases in retail sales in June compared with May: Ontario (+1.3 percent), Alberta (+0.8 percent) and Nova Scotia (+0.6 percent). Sales were down in the other provinces, with the largest declines reported by New Brunswick (-1.9 percent) and Quebec (-1.4 percent). Compared with a year earlier, retail sales increased in 6 of 10 provinces, led by Newfoundland and Labrador (+10.5 percent) and Prince Edward Island (+9.0 percent). Sales fell in the remaining four provinces, with the largest declines in Saskatchewan (-5.6 percent) and Manitoba (-3.2 percent). Sales in the territories were up 2.6 percent compared with May and up 6.3 percent compared with a year earlier..
Canada Retail Sales June: Better Month on autos but Trend Weak
