Retail sales in December reached $71.6 billion, marking a 3.7% increase compared to the same month in 2023, according to a report from Statistics Canada. This uptick was seen across 14 of the 18 commodity classes, signaling a robust end to the year for the retail sector.
The most significant contributor to this growth was motor vehicle sales, which surged by 14.1% year-over-year in December. “The growth in motor vehicle sales was largely driven by a 15.0% increase in new motor vehicles,” said the report. New minivans, sport utility vehicles, and light trucks led this rise, with sales in these categories increasing by 16.8%. Additionally, used motor vehicle sales saw a solid increase of 12.6% compared to December 2023.
Clothing sales also saw continued growth as the holiday season approached, rising by 3.9% in December. Women’s clothing led the charge with a 3.4% increase, while men’s clothing saw a slightly higher gain of 4.0%. Footwear sales, in particular, experienced a notable rise, up 7.7%, with non-athletic footwear accounting for the bulk of the growth, posting a 9.6% increase, explained Statistics Canada.
The holiday season also brought increased demand for gifts and entertainment items. Audio and video recordings, as well as game software, jumped by 12.4%, while toys and games (excluding game consoles and software) saw a smaller, but still significant, increase of 2.6%.
However, not all commodity classes saw growth in December. Food and beverage sales posted the largest dollar decline, falling by 0.5%. The decrease was primarily attributed to a drop in alcoholic beverage sales, which fell by 5.1%. Despite this decline, other categories within the food and beverage sector performed well. Sales of eggs and dairy products rose by 2.3%, while cookies, confectionery, and snack foods grew by 1.8%, and fresh meat and poultry saw a 2.0% increase, noted Statistics Canada.
Looking ahead, the Monthly Retail Trade Survey’s advance estimate for January 2025 suggests an early increase of 6.5% in unadjusted total retail sales. This figure is preliminary and will be revised in future reports.
These figures point to a resilient retail landscape, driven by strong consumer demand across multiple categories, from vehicles to apparel and entertainment.
Related Retail Insider stories:
