Retail sales in November 2024 were relatively stable, remaining largely unchanged despite variations across sectors. Six of the subsectors saw declines, while there were increases in some others. The food and beverage sector led the decliners, with sales down 1.6%. On other hand, the motor vehicle and parts sector saw a 2.0% increase, while sales at gas stations and fuel retailers also rose 0.7%. This increase helped offset declines in other sectors.
Sales at core retail, which excludes gas stations and motor vehicle and parts dealers, fell 1.0% in November. This represents largest decline in six months for the sector. The declines were also driven by lower sales in the food and beverage sector, with supermarkets and grocery retailers contributing significantly to the decline. Grocery retailers saw a 1.5% decline in sales, while beer, wine and spirits retailers saw a 2.9% decline, with sales continuing to decline on a monthly basis.
On the other hand, the general merchandise sector also saw a decline, with sales down 1.0%. Building materials and garden supplies retailers also saw a 2.1% decline in sales in November.
In terms of volume, overall retail sales fell 0.4% in November. This reflects a slight decline in business activity in some sectors. These figures provide a broad picture of economic situation in the month, with food and beverages remaining the most affected by changes in demand, while others benefited from improvements in auto and fuel sales.
These figures are an indicator of market trends, as they can reflect a decline in consumer confidence in certain sectors. This decline may be linked to broader economic factors, such as inflation or changes in consumer behavior. Despite these declines, some sectors, such as auto and fuel, continue to benefit from continued demand, contributing to a partial balance between the different sectors.
Sales decline in seven governorates
Retail sales in November 2024 witnessed a mixed performance, with some sectors achieving a significant increase in their sales, while others faced a decline in business activity. The most notable improvement was recorded by the car and spare parts dealers sector, where sales in this sector increased by 2.0%. The largest increase was in new car sales, which witnessed a 2.4% increase. This increase continued for the fourth time in the last five months, reflecting the stability of demand in this sector. Sales of car spare parts, accessories and tires also recorded an increase of 0.9%. In addition, sales of other car dealers recorded an increase of 0.8%.
This increase in sales of car and spare parts dealers is one of the positive points in the November retail sales report, as it reflected consumers’ interest in car-related products. This is in line with the improvement in demand for new cars and spare parts, at a time when markets are witnessing changes in consumption patterns. The continued demand for cars and accessories reflects this trend, especially during a period of increasing individuals’ need for mobility. On the other hand, sales at gas stations and fuel retailers increased by 0.7% in November after six consecutive months of declines. This increase in fuel sales reflects a slight improvement in energy demand. However, fuel sales by volume decreased by 0.8%. These figures may indicate a relative slowdown in fuel consumption despite the increase in sales by value.
Regionally, some provinces recorded declines in retail sales. In Alberta, for example, the largest decline in sales was observed at 1.1%. New Brunswick also saw a decline of 2.0% in the same month. These declines reflected local challenges that may be related to economic conditions or changes in consumer behavior in those regions.
Retail e-commerce sales in Canada and the Advanced Retail Index
In contrast, Ontario saw retail sales increase by 0.5%, primarily driven by increased sales in the auto and parts sector. The Toronto Metropolitan Area also saw a 1.1% increase in retail sales in November, reflecting improved business activity in major metropolitan areas.
On the e-commerce front, online retail sales fell slightly by 1.2% in November, bringing total sales to $4.1 billion. This represents about 6.1% of total retail sales, compared to 6.2% in October. Despite the slight decline in e-commerce, e-commerce remains an important channel for consumers to purchase products. These figures reflect changes in consumer preferences, with online shopping increasingly popular despite economic challenges.
On the other hand, Statistics Canada provided an advance estimate for retail sales in December, predicting that sales may have increased by 1.6%.and This figure is an unofficial estimate based on responses from 48.3% of businesses surveyed.and This estimate may change as responses from other businesses are gathered, but this preliminary estimate reflects the possibility of a slight improvement in sales in December.
Given all of these factors, the November retail sales report reflects a mixed performance across sectors. While the auto and parts sector saw a notable increase, other sectors such as gas stations and e-commerce did not fare as well. So Regional performance was also mixed.
with some provinces recording significant declines while others benefited from the increase in auto sales. These indicators suggest that Canada’s retail markets are facing ongoing challenges, but some sectors are still showing growth, contributing to overall stability.
