Canada: Retail Trade October 2015

Retail sales edged up 0.1% in October to $43.4 billion. Sales were up in 7 of 11 subsectors, representing 59% of retail trade.

After removing the effects of price changes, retail sales in volume terms declined 0.3%.

Clothing and footwear lead retail sales increase

Higher sales of clothing and footwear contributed to gains at clothing and clothing accessories stores (+1.9%), sporting goods, hobby, book and music stores (+4.9%), as well as general merchandise stores (+0.6%). Clothing and clothing accessories account for about one-seventh of sales at sporting goods, hobby, book and music stores and one-tenth of sales at general merchandise stores.

Within the clothing and clothing accessories stores subsector, higher receipts were reported at all store types as sales at clothing stores (+1.8%), shoe stores (+3.6%) and jewellery, luggage and leather goods stores (+1.1%) increased in October.

The gain at sporting goods, hobby, book and music stores more than offset declines in August and September.

Following a 0.3% decrease in September, sales at motor vehicle and parts dealers (+0.4%) rose for the eighth time in nine months. The increase in the subsector stemmed from higher sales at used car dealers (+3.3%), with gains registered across most provinces. Sales at new car dealers edged up 0.1% in October. Gains were also reported at automotive parts, accessories and tire stores (+0.5%) as well as other motor vehicle dealers (+0.4%).

After decreasing in September, sales at furniture and home furnishings stores rose 0.5%. Sales at furniture stores were up 1.4%, while home furnishing stores reported a 1.1% decline.

Following two months of gains, receipts at food and beverage stores decreased 1.2% in October. Lower sales at supermarkets and other grocery stores (-0.8%) and beer, wine and liquor stores (-2.5%) contributed in equal measure to the decline. Lower sales were also reported at convenience stores (-2.7%).

Electronics and appliance stores (-2.1%) posted their fourth consecutive monthly sales decrease.

Sales at gasoline stations declined 0.4% in October, reaching their lowest level since January 2015.

Sales up in four provinces

Retail sales were up in four provinces in October. Higher sales in Ontario and, to a much lesser extent, Quebec more than offset lower sales in Alberta, British Columbia and Nova Scotia.

Following declines in August and September, Ontario (+0.5%) reported the largest increase in dollar terms on the strength of higher sales at new car dealers and sporting goods, hobby, book and music stores.

Sales were up 0.2% in Quebec, as higher sales at clothing and clothing accessories stores more than offset lower sales at new car dealers.

In New Brunswick (+1.2%), retail sales rose for the eighth time in nine months.

Newfoundland and Labrador (+1.1%) reported the first increase in three months as a result of higher sales at new car dealers.

Receipts in Alberta (-0.8%) declined for the third month in a row, as lower sales were reported at food and beverage stores and clothing and clothing accessories stores.

Sales fell 1.3% in Nova Scotia, as lower sales at motor vehicle and parts dealers more than offset gains at building material, garden equipment and supplies dealers.

Following a peak in September, sales in British Columbia declined 0.3% in October. This was mainly the result of lower sales at beer, wine and liquor stores and clothing stores.

Forex heatmap

StatsCanada

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell