Canada: Retail trade, February 2017

Retail sales declined 0.6% to $47.8 billion in February, following a 2.3% increase in January. Sales were down in 5 of 11 subsectors, representing 67% of total retail sales.

Lower sales at motor vehicle and parts dealers and gasoline stations were the main contributors to the decline. Excluding these two subsectors, retail sales were up 0.5%.

After removing the effects of price changes, retail sales in volume terms edged down 0.1%.

Motor vehicle and parts dealers and gasoline stations lead the decline

Sales at motor vehicle and parts dealers (-1.8%) were down for the first time in seven months, largely reflecting weaker sales at new car (-1.7%) and other motor vehicle (-5.5%) dealers. Following gains in January, sales were 1.3% lower at used car dealers.

Gasoline stations (-3.6%) posted their first sales decline in three months, largely reflecting lower prices at the pump.

Following an increase in January, receipts at food and beverage stores decreased 0.4% in February. Lower sales at beer, wine and liquor stores (-1.7%) was the main contributor to the decline. Sales at specialty food stores (-0.6%) also declined, while supermarkets and other grocery stores sales were relatively unchanged from January.

Building material and garden equipment and supplies dealers (-0.8%) posted their first decline in six months.

Receipts at electronics and appliance stores edged down 0.2%, following a 5.4% increase in January.

Sales at health and personal care stores (+2.0%) rose for the second month in a row.

Clothing and clothing accessories stores reported a 2.2% sales gain in February. Higher sales at clothing (+3.4%) and shoe (+2.0%) stores more than offset the 6.2% decline at jewellery, luggage and leather goods stores.

Sales down in eight provinces

Retail sales were down in eight provinces in February.

Ontario (-0.6%) reported the largest decrease in dollar terms, led by lower sales at new car dealers.

In Nova Scotia (-4.5%), lower sales were reported at motor vehicle and parts dealers as well as building material and garden equipment and supplies dealers. Severe winter weather events were a factor.

Sales in Quebec were down 0.5% on lower sales at used car dealers and gasoline stations.

In Saskatchewan (+0.6%), retail sales advanced for the seventh consecutive month on higher sales at new and used car dealers.

Retail sales in New Brunswick (+0.3%) rose for the sixth time in seven months.

E-commerce sales by Canadian retailers

The figures in this section are based on unadjusted (that is, not seasonally adjusted) estimates.

On an unadjusted basis, retail e-commerce sales were $939 million in February, accounting for 2.4% of total retail trade. On a year-over-year basis, retail e-commerce increased 27.4% while total unadjusted retail sales rose 3.2%.

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