Canada’s monthly retail sales fell 0.6% to $69.4 billion in January. Sales fell in three of the nine sub-sectors, driven by lower sales of auto and parts dealers.
Core retail sales — which excludes petrol stations, fuel vendors and auto and parts dealers — fell 0.2% in January. In terms of volume, retail sales fell 1.1% in January.
Sales of car dealers and spare parts fell, while sales of petrol stations and fuel vendors rose.
The biggest decline in retail sales in January was directed by auto and parts traders (-2.6%). The decrease was due to lower sales of new car dealers (-3.2%) and auto parts, accessories and tyres (-2.8%). The largest increase in the automotive and parts dealers sector came from used car dealers (+1.6%).
Petrol station and fuel vendor sales (+3.2%) increased in January for the fourth consecutive month. In terms of volume, sales of petrol stations and fuel distributors increased by 0.1%.
Decline in core retail sales
After an increase of 2.7% in December, core retail sales fell 0.2% in January, as a result of lower F&B store sales (-2.5%). Food and beverage store sales fell mainly as a result of lower sales of supermarkets and other grocery stores (excluding food commodity stores), which fell by 3.4% in January. To a lesser extent, beer, wine and liquor stores (-2.0%) contributed to this decline.
Sales of sporting goods, hobbies, musical instruments, books and other miscellaneous goods also declined (-2.2%) in January.
Sales drop in three counties
Retail sales fell in three provinces in January. The largest regional decline in dollar retail sales was recorded in Quebec (-2.7%), following an increase of 3.8% in December. In the Montreal metropolitan area (CMA), sales fell 1.0% in January.
Ontario retail sales decline and 2024 trends
In Ontario, retail sales fell 0.9% in January, driven by lower sales of auto and parts dealers. In the Toronto metropolitan area (CMA), retail sales fell 1.7 percent%.
The largest increase in core retail sales in January came from furniture, home furnishings, electronics and home appliances stores (+3.0%). Data is published monthly by the U.S. Census Bureau, usually in the middle of the month for the previous month’s performance
The largest regional increase in retail sales was recorded in January in Saskatchewan (+2.7%). This increase was driven by higher sales of car and spare parts dealers.
Basic retail sales increased by 1.3% in 2024, led by higher sales at retailers of general goods (+3.9%) and retailers of health and personal care (+4.6%). Sales at food and beverage retailers also increased (+0.9%) due to higher sales in supermarkets and other grocery retailers (excluding convenience retailers) (+2.0%), which saw gains in seven months in 2024.
Electronic Retail Sales in Canada
This early indicator is a special informal estimate provided to provide Canadians with real-time information about the retail sector. The data sources and methodology used are the same as those described on the Retail Monthly Survey Information page.
On a seasonally adjusted basis, e-retail sales fell 0.9% to US$4.2 billion in January, accounting for 6.1% of total retail trade.
Segmentation Index Provided Statistics Canada provides an advance estimate of retail sales, indicating a 0.4% decline in sales in February. Due to their early nature, this figure will be adjusted. This unofficial estimate was calculated based on responses from 61.9% of companies surveyed. The average final response rate to the survey over the past twelve months was 87.9%.
U.S. Core Retail Sales monthly: An Overview
U.S. retail sales on a monthly basis (m/m) is a key economic indicator that measures the change in the total value of U.S. retail-level sales from month to month. Here are the main aspects to understand about this indicator:
Overview
Definition: Retail sales on a monthly basis represents the percentage change in sales across different retail segments, comparing the current month with the previous month. It provides insights into consumer spending trends.
Data source: Data is published monthly by the U.S. Census Bureau, usually in the middle of the month for the previous month’s performance.
Importance
Economic Index: Retail sales are an important component of consumer spending, which drives a large part of the U.S. economy. Changes in retail sales could signal shifts in consumer confidence and economic health.
Impact on GDP: Retail sales figures are used to calculate gross domestic product (GDP), making them essential to understanding economic growth.
Market Reactions
Financial Markets: Retail sales data can significantly impact financial markets. Strong sales figures typically lead to positive market sentiment, while weak numbers can cause lower stock prices and shifts in bond yields.
Currency Impact: The USD may rise or weaken based on retail sales performance, affecting forex trading.
Analysis and trends
Monthly volatility: Retail sales can be volatile from month to month due to seasonal factors, holidays, and economic events. Analysts often look for trends over several months to accurately measure consumer behavior.
Consumer confidence: A higher retail sales figure generally indicates higher consumer confidence, leading to increased spending, while lower sales may indicate economic concerns.
Retail sales in US dollars on a monthly basis are a critical indicator of economic activity and consumer behavior in the United States. They provide valuable insights for economists, policymakers, investors and analysts in underr.
