Canadian retail sales in August painted a picture of cautious consumer spending, with All Stores experiencing a marginal growth of 0.6% YOY. The discretionary spending segment, represented by All Stores Less Automotive, Food, and Pharmacies, saw an even slimmer growth of 0.2% YOY, indicating a continued cautious approach to non-essential purchases.
Notably, Clothing and Accessories Stores continued the typical back-to-school trend with a strong 5.4% YOY increase. This uptick suggests that despite economic headwinds, parents and students prioritized wardrobe refreshes for the new academic year. This trend may also indicate a broader return to social and professional activities, driving demand for new apparel.
Conversely, sectors tied to housing and home improvement faced further challenges. Furniture Stores experienced a decline of -5.5% YOY, while Home Furnishing Stores and Building Material and Garden Equipment stores also saw decreases of -1.7% and -7.4% YOY, respectively. These declines likely reflect the cooling housing market and consumer hesitancy towards major home-related purchases in the face of economic uncertainty. The anticipation of a potential interest rate cut in October likely suggests a collective hope for a boost in these sectors.
Interestingly, while Convenience Stores faced a -4.7% YOY decline, there’s optimism on the horizon with the imminent introduction of alcohol sales in these outlets in Ontario (which occurred in September). This regulatory change could potentially revitalize the convenience store sector, offering a new revenue stream and potentially altering consumer shopping habits.
The Beer, Wine, and Liquor Stores category showed resilience with a 3.1% YOY increase. This growth, coming on the heels of a strike at LCBO stores, demonstrates the category’s ability to bounce back and the continued consumer demand for these products, even in challenging economic times. However, the before mentioned introduction of alcohol at convenience stores, and the growing trend of eliminating alcohol could have a continued impact on these stores.
As we move further into the fall, and approach some major changes in Canada and North America, the JCWG team is currently thinking about:
• While there will undoubtedly be an impact in the US, how will the upcoming U.S. election impact the Canadian retail industry?
• What will be the ripple effects of potential interest rate decreases?
• How will the recently announced, revised immigration targets affect retail demand?
• Will this year’s holiday sales exceed last years results?
• How are YOU preparing for the upcoming holiday season?
Canadian Retail Sales by Product Category, Same Month Comparison
| Sales for the Month of August | Aug-24 | Aug-23 | YOY |
|---|---|---|---|
| All Stores | 69,932,236 | 69,487,092 | 0.64% |
| Motor Vehicle and Parts Dealers | 19,106,184 | 18,808,359 | 1.58% |
| Gasoline Stations | 6,867,051 | 7,316,427 | -6.14% |
| All Stores Less Automotive | 43,959,001 | 43,362,306 | 1.38% |
| Food and Beverage Stores | 13,686,789 | 13,233,492 | 3.43% |
| Supermarkets and Other Grocery Stores* | 9,479,025 | 9,094,355 | 4.23% |
| Convenience Stores | 784,037 | 822,146 | -4.64% |
| Specialty Food Stores | 967,232 | 935,191 | 3.43% |
| Beer, Wine and Liquor Stores | 2,456,494 | 2,381,800 | 3.14% |
| Health and Personal Care Stores | 5,523,059 | 5,433,003 | 1.66% |
| All Stores Less Automotive, Food, and Pharmacies | 24,749,153 | 24,695,811 | 0.22% |
| General Merchandise Stores | 9,171,844 | 8,810,709 | 4.10% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 3,639,594 | 3,782,370 | -3.77% |
| Furniture Stores | 1,221,896 | 1,292,717 | -5.48% |
| Home Furnishings Stores | 688,177 | 699,807 | -1.66% |
| Electronics and Appliance Stores | 1,729,521 | 1,789,846 | -3.37% |
| Clothing and Accessories Stores | 3,827,794 | 3,630,700 | 5.43% |
| Clothing Stores | 2,943,773 | 2,786,911 | 5.63% |
| Shoe Stores | 499,499 | 461,570 | 8.22% |
| Jewellery, Luggage and Leather Goods Stores | 384,523 | 382,219 | 0.60% |
| Sporting Goods, Hobby, Book and Music Stores | 4,073,344 | 4,115,307 | -1.02% |
| Building Material and Garden Equipment | 4,036,578 | 4,356,726 | -7.35% |
| Miscellaneous Store Retailers | 2,671,257 | 2,636,825 | 1.31% |
| Cannabis Retailers | 465,106 | 469,015 | -0.83% |
Canadian E-commerce Sales
| Ecommerce Sales | Aug-24 | Aug-23 | Percent Change |
|---|---|---|---|
| Year-to-Date | 29,426,372 | 27,894,707 | 5.49% |
| Year-Over-Year | 3,736,531 | 3,562,850 | 4.87% |
Canadian Retail Sales by Store Category, Year to Date Comparison
| Year-to-Date, Ending August | Aug-24 | Aug-23 | YTD |
|---|---|---|---|
| All Stores | 524,055,082 | 519,161,948 | 0.94% |
| Motor Vehicle and Parts Dealers | 144,867,742 | 143,359,690 | 1.05% |
| Gasoline Stations | 51,981,418 | 52,441,254 | -0.88% |
| All Stores Less Automotive | 327,205,922 | 323,361,004 | 1.19% |
| Food and Beverage Stores | 101,649,863 | 100,556,617 | 1.09% |
| Supermarkets and Other Grocery Stores* | 72,340,885 | 70,871,847 | 2.07% |
| Convenience Stores | 5,780,540 | 5,980,740 | -3.35% |
| Specialty Food Stores | 6,962,360 | 6,649,730 | 4.70% |
| Beer, Wine and Liquor Stores | 16,566,079 | 17,054,297 | -2.86% |
| Health and Personal Care Stores | 43,828,665 | 41,669,260 | 5.18% |
| All Stores Less Automotive, Food, and Pharmacies | 181,727,394 | 181,135,127 | 0.33% |
| General Merchandise Stores | 69,566,619 | 66,511,679 | 4.59% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 27,129,419 | 27,530,794 | -1.46% |
| Furniture Stores | 9,019,787 | 9,284,361 | -2.85% |
| Home Furnishings Stores | 5,307,529 | 5,517,478 | -3.81% |
| Electronics and Appliance Stores | 12,802,104 | 12,728,952 | 0.57% |
| Clothing and Accessories Stores | 25,480,297 | 25,572,701 | -0.36% |
| Clothing Stores | 19,687,680 | 19,673,778 | 0.07% |
| Shoe Stores | 3,028,127 | 3,085,223 | -1.85% |
| Jewellery, Luggage and Leather Goods Stores | 2,764,490 | 2,813,699 | -1.75% |
| Sporting Goods, Hobby, Book and Music Stores | 28,715,871 | 29,966,332 | -4.17% |
| Building Material and Garden Equipment | 30,835,186 | 31,553,623 | -2.28% |
| Miscellaneous Store Retailers | 18,715,520 | 19,628,121 | -4.65% |
| Cannabis Retailers | 3,352,109 | 3,386,032 | -1.00% |
Retail Trade, Canada, All Stores, by Geographic Regions
| Region | Year-to-Date 2024 | Year-to-Date 2023 | YTD |
|---|---|---|---|
| British Columbia | 70,575,477 | 70,748,706 | -0.24% |
| Vancouver | 35,160,242 | 34,741,189 | 1.21% |
| Alberta | 67,734,244 | 67,550,918 | 0.27% |
| Prairies* | 34,932,491 | 34,189,048 | 2.17% |
| Ontario | 194,646,904 | 193,452,626 | 0.62% |
| Toronto | 87,162,773 | 87,875,608 | -0.81% |
| Québec | 118,007,938 | 116,389,953 | 1.39% |
| Montréal | 58,603,223 | 57,974,163 | 1.09% |
| Atlantic Canada | 36,267,209 | 35,041,797 | 3.50% |
| Territories | 1,890,822 | 1,788,900 | 5.70% |
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