August 24, 2022

Retail sales increased 1.1% to $63.1 billion in June, the sixth consecutive increase. Sales were up in 8 of 11 subsectors, representing 76.8% of retail trade. Higher sales at gasoline stations and motor vehicle and parts dealers led the increase.

Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—edged up 0.2%.

In volume terms, retail sales were up 0.2% in June.

Retail sales were up 3.2% in the second quarter. In volume terms, quarterly sales were up 0.9%.

Given the continually evolving economic situation, Statistics Canada is providing an advance estimate of retail sales, which suggests that sales decreased 2.0% in July. Owing to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses received from 36.5% of companies surveyed. The average final response rate for the survey over the previous 12 months has been 91.3%.

Higher sales at gasoline stations and motor vehicle and parts dealers lead retail sales

Leading the increase in retail sales in June were higher sales at gasoline stations (+3.9%), which recorded their sixth consecutive increase. In volume terms, sales at gasoline stations decreased 1.3%. Gasoline prices rose 6.2% on an unadjusted basis in June. Gas prices largely followed crude oil prices, which peaked in the first week of June but eased in the remaining weeks amid slowing demand worldwide on concerns of a global economic slowdown.

Sales at motor vehicle and parts dealers were up 1.8% in June. The increase was largely the result of higher sales at new car dealers (+2.9%). Higher sales were also reported at used car dealers (+1.7%), which recorded their fastest pace of growth since October 2021. Lower sales were reported at other motor vehicle dealers (-6.9%) and automotive parts, accessories and tire stores (-0.8%).

Core retail sales edge up on gains at general merchandise stores

Core retail sales edged up 0.2% in June. Higher sales were observed at general merchandise stores (+1.1%), which increased for a fourth consecutive month.

Higher sales were also observed at clothing and clothing accessories stores (+1.8%), which were led by gains in clothing stores (+2.1%) and jewellery, luggage and leather goods stores (+2.4%). Shoe stores (-0.7%) were the only store type in this subsector to decline.

The largest decline to core retail was observed at food and beverage stores, which decreased 1.1% in June, after increasing 1.7% in May. Lower sales at supermarkets and other grocery stores (-0.8%) and beer, wine and liquor stores (-2.9%) contributed to the decrease in this subsector in June.

Sales up in seven provinces

Retail sales increased in seven provinces in June. Leading the gain was Ontario (+1.7%) where motor vehicle and parts dealers contributed the most to the increase. In the census metropolitan area (CMA) of Toronto, sales were up 2.5%.

Sales increased 1.1% in British Columbia, led by higher sales at building material and garden equipment and supplies dealers. Sales were up 1.1% in the CMA of Vancouver.

Higher sales were also observed in Saskatchewan (+3.7%) on the strength of higher sales at motor vehicle and parts dealers.

Retail e-commerce sales in Canada

On a seasonally adjusted basis, retail e-commerce sales were up 4.5% in June.

On an unadjusted basis, retail e-commerce sales were down 5.3% year over year to $3.8 billion in June, accounting for 5.4% of total retail trade. The share of e-commerce sales out of total retail sales fell 1.0 percentage points compared with June 2021.

Source: Statistics Canada
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