Retail sales in Canada increased 1.1 per cent to $65.9 billion in April as sales increased in eight of nine subsectors and were led by increases at general merchandise retailers (+3.3 per cent) and food and beverage retailers (+1.5 per cent), reported Statistics Canada on Wednesday.
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The federal agency said core retail sales—which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers—increased 1.5 per cent in April. In volume terms, retail sales increased 0.3 per cent in April.
Core retail sales posted their fifth consecutive monthly increase. The gain was led by higher sales at general merchandise retailers (+3.3 per cent). Higher sales were also recorded at food and beverage retailers (+1.5 per cent), with all store types in this subsector posting increases, said StatsCan.
The largest decrease to core retail sales came from furniture, home furnishings, electronics and appliance retailers (-1.6 per cent). Sales were down in all three store types, with lower sales at electronics and appliance retailers (-1.3per cent) leading the decline, it added.
“After their decline in March, sales at motor vehicle and parts dealers increased 0.5 per cent in April. The increase was led by higher sales at used car dealers (+3.7 per cent), followed by automotive parts, accessories and tire retailers (+3.5 per cent). The largest decline in this subsector were sales of other motor vehicle dealers (-1.2 per cent), which recorded their second consecutive decrease,” said the report.
“Also contributing to the increase in retail sales in April were higher sales at gasoline stations and fuel vendors (+0.3 per cent). In volume terms, sales at gasoline stations and fuel vendors decreased 1.5 per cent.”
On a seasonally adjusted basis, retail e-commerce sales were down 6.1 per cent to $3.6 billion in April, accounting for 5.5 per cent of total retail trade compared with 5.9 per cent in March, added the report.
Maria Solovieva
Maria Solovieva, Economist with TD Economics, said retail sales entered the second quarter beating expectations with growth powered not only by insatiable demand for cars but also by strong gains in core categories – revealing a reacceleration in spending momentum.
“This results in a stronger handoff to the second quarter with real consumer spending now tracking 1.0 per cent quarter-on-quarter (annualized),” she said.
“Such broad based growth vindicates the Bank of Canada’s decision to raise its policy rate. Amid its continuous effort to stymie persistent excess demand, and stop the decline in inflation from stalling, the Bank is likely to hike again in July. Markets agree, and are pricing the probability of a July hike at more than 60 per cent.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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