Canadian retail sales in May experienced a modest increase of 1.1% YOY for All Stores, according to the latest data. However, discretionary spending underperformed, with All Stores Less Automotive, Food, and Pharmacies decreasing by -0.6% YOY.
The Supermarkets and Other Grocery Stores category saw a 1.8% YOY increase in sales, indicating that the recent boycotts targeting major grocery chains had a minimal impact on the industry overall. Inflation in food over the past year (May 2024 compared to May 2023) is at 1.5%, therefore large grocers still exceeded last year’s sales as a whole.
Specialty Food Stores, on the other hand, received a slight boost of 2.9% YOY, potentially due to consumers shifting towards smaller, local grocers in response to high inflation and the boycotts. There are many Specialty Food Stores that are not reported in Canadian StatCan data, so this could mean that the increase is actually higher than reported.
Interestingly, as noted last month, retail sales in Alberta continue to decrease, and were down -0.3% YTD compared to 2023. This is despite the province’s significant population growth. Considerations included:
- Newcomers are shopping locally, though this alone shouldn’t have a significant impact.
- The costs associated with moving have constrained their immediate spending capacity.
- Alberta’s appeal lies in its lower cost of living, suggesting that many of the new residents might already be more frugal shoppers.
While Canadians continue to be constrained on cost of living expenses, they may be headed to other less-expensive areas, such as the Maritimes, for Ontarians, British Columbians, and maybe now even Albertans. Atlantic Canada experienced the second highest growth in retail sales of all Canadian regions (4.6% YTD). However, just as what is likely occurring in Alberta, this could backfire in the near future as the cost of living increases to a point where the differences in lifestyle begin to outweigh the savings in housing and relocating. These interprovincial migrations will also continue to be strained by the requirements to return to office.
As we move into the summer months, JCWG will be closely monitoring several key trends and factors that will continue to shape the Canadian retail landscape:
- Will Canada begin to see the benefits of “coolcation” tourism? (tourists looking for cooler climates to travel to in the summer to avoid heat waves).
- As we approach the mid-point of 2024, how will Q1/Q2 trends develop through the rest of the year?
- How will upcoming mortgage renewals impact discretionary spending?
- Is news on construction, flooding, fires, etc. keeping tourists from wanting to travel to popular Canadian destinations?
- With limited growth in the percentage of online sales, could enhancements in retail experiences be the underlying cause?
- How are YOU strategizing to encourage tourists to visit your store?
Canadian Retail Sales by Product Category, Same Month Comparison
| Sales for the Month of May | May-24 | May-23 | YOY |
|---|---|---|---|
| All Stores | 73,246,319 | 72,465,329 | 1.08% |
| Motor Vehicle and Parts Dealers | 21,105,126 | 20,817,788 | 1.38% |
| Gasoline Stations | 7,022,737 | 6,748,090 | 4.07% |
| All Stores Less Automotive | 45,118,456 | 44,899,451 | 0.49% |
| Food and Beverage Stores | 13,420,965 | 13,268,769 | 1.15% |
| Supermarkets and Other Grocery Stores* | 9,448,356 | 9,281,237 | 1.80% |
| Convenience Stores | 783,489 | 795,575 | -1.52% |
| Specialty Food Stores | 929,333 | 903,234 | 2.89% |
| Beer, Wine and Liquor Stores | 2,259,787 | 2,288,723 | -1.26% |
| Health and Personal Care Stores | 5,658,393 | 5,436,995 | 4.07% |
| All Stores Less Automotive, Food, and Pharmacies | 26,039,098 | 26,193,687 | -0.59% |
| General Merchandise Stores | 9,846,684 | 9,556,835 | 3.03% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 3,495,373 | 3,501,616 | -0.18% |
| Furniture Stores | 1,175,700 | 1,178,782 | -0.26% |
| Home Furnishings Stores | 742,438 | 734,665 | 1.06% |
| Electronics and Appliance Stores | 1,577,235 | 1,588,169 | -0.69% |
| Clothing and Accessories Stores | 3,630,648 | 3,653,592 | -0.63% |
| Clothing Stores | 2,775,750 | 2,780,342 | -0.17% |
| Shoe Stores | 455,778 | 453,956 | 0.40% |
| Jewellery, Luggage and Leather Goods Stores | 399,120 | 419,293 | -4.81% |
| Sporting Goods, Hobby, Book and Music Stores | 3,963,343 | 4,145,280 | -4.39% |
| Building Material and Garden Equipment | 5,103,049 | 5,336,364 | -4.37% |
| Miscellaneous Store Retailers | 2,613,910 | 2,812,805 | -7.07% |
| Cannabis Retailers | 434,457 | 425,360 | 2.14% |
Canadian Ecommerce Sales
| Ecommerce Sales | May-24 | May-23 | Percent Change |
|---|---|---|---|
| Year-to-Date | 18,164,599 | 17,142,294 | 5.96% |
| Year-Over-Year | 3,867,846 | 3,435,243 | 12,59% |
Canadian Retail Sales by Store Category, Year to Date Comparison
| Year-to-Date, Ending May | May-24 | May-23 | YTD |
|---|---|---|---|
| All Stores | 315,851,564 | 310,686,579 | 1.66% |
| Motor Vehicle and Parts Dealers | 87,973,502 | 86,094,939 | 2.18% |
| Gasoline Stations | 31,285,262 | 31,559,920 | -0.87% |
| All Stores Less Automotive | 196,592,800 | 193,031,720 | 1.84% |
| Food and Beverage Stores | 61,359,101 | 60,281,645 | 1.79% |
| Supermarkets and Other Grocery Stores* | 44,282,343 | 43,134,605 | 2.66% |
| Convenience Stores | 3,441,433 | 3,505,006 | -1.81% |
| Specialty Food Stores | 4,077,411 | 3,862,595 | 5.56% |
| Beer, Wine and Liquor Stores | 9,557,915 | 9,779,437 | -2.27% |
| Health and Personal Care Stores | 27,278,064 | 25,660,492 | 6.30% |
| All Stores Less Automotive, Food, and Pharmacies | 107,955,635 | 107,089,583 | 0.81% |
| General Merchandise Stores | 41,752,032 | 39,641,745 | 5.32% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 16,609,275 | 16,680,458 | -0.43% |
| Furniture Stores | 5,446,315 | 5,497,713 | -0.93% |
| Home Furnishings Stores | 3,272,941 | 3,465,021 | -5.54% |
| Electronics and Appliance Stores | 7,890,019 | 7,717,722 | 2.23% |
| Clothing and Accessories Stores | 14,747,681 | 15,018,795 | -1.81% |
| Clothing Stores | 11,362,460 | 11,576,802 | -1.85% |
| Shoe Stores | 1,733,333 | 1,765,148 | -1.80% |
| Jewellery, Luggage and Leather Goods Stores | 1,651,887 | 1,676,843 | -1.49% |
| Sporting Goods, Hobby, Book and Music Stores | 17,019,486 | 17,827,262 | -4.53% |
| Building Material and Garden Equipment | 17,827,159 | 17,921,323 | -0.53% |
| Miscellaneous Store Retailers | 11,052,140 | 11,682,117 | -5.39% |
| Cannabis Retailers | 2,058,626 | 2,024,034 | 1.71% |
Retail Trade, Canada, All Stores, by Geographic Regions
| Region | Year-to-Date 2024 | Year-to-Date 2023 | YTD |
|---|---|---|---|
| British Columbia | 42,777,341 | 42,641,473 | 0.32% |
| Vancouver | 21,549,603 | 21,156,050 | 1.86% |
| Alberta | 40,830,068 | 40,935,414 | -0.26% |
| Prairies* | 20,894,908 | 20,424,942 | 2.30% |
| Ontario | 118,355,499 | 115,954,070 | 2.07% |
| Toronto | 53,635,315 | 53,193,128 | 0.83% |
| Québec | 70,490,472 | 69,146,206 | 1.94% |
| Montréal | 35,123,032 | 34,540,933 | 1.69% |
| Atlantic Canada | 21,457,502 | 20,517,561 | 4.58% |
| Territories | 1,135,074 | 1,066,912 | 6.39% |
