Retail sales drop in September, remained flat last month: Statistics Canada

Retail sales across Canada fell in September and are projected to have remained flat last month as well, according to the latest data from Statistics Canada.

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Retail sales across Canada fell in September and are projected to have remained flat last month as well, according to the latest data from Statistics Canada.

While sales are likely to rebound this month and December due to holiday season shopping, September saw a 0.7 per cent downturn, bringing total retail sales to $69.8 billion that month.

The drop was primarily driven by a decrease in sales at motor vehicle and parts dealers, which fell for the first time in three months.

New car dealers saw a 3.6 per cent drop in sales, leading the decrease in the subsector after rising slightly in August.

Meanwhile, sales at gasoline stations and fuel vendors rose 1.9 per cent in September, marking their first increase in three months.

“Following a gain of 1.1 per cent in August, core retail sales were relatively unchanged in September. The largest decrease to core retail sales in September came from building material and garden equipment and supplies dealers (-2.0 per cent), which fell for the third month in a row. Lower sales were also recorded at general merchandise retailers (-0.5 per cent),” writes Statistics Canada.

“The largest increase to core retail sales in September came from food and beverage retailers (+0.8 per cent). Higher receipts in this subsector were led by increases at beer, wine and liquor retailers (+3.4 per cent), followed by supermarkets and other grocery retailers (+0.3 per cent).”

Retail sales were down across six provinces that month, with Ontario experiencing the largest drop, driven by lower motor vehicle sales and a decline in overall retail sales in the Greater Toronto Area.

Sales also decreased in British Columbia, with retail sales down one percent in the Vancouver area.

Meanwhile, Nova Scotia saw the largest provincial increase in retail sales, up 1.5 per cent.

“On a seasonally adjusted basis, retail e-commerce sales decreased 3.5 per cent to $4.1 billion in September, accounting for 5.9 per cent of total retail trade, compared with 6.1 per cent in August,” it said.

Based on its advanced estimates, Statistics Canada suggests sales remained relatively unchanged in October.