Retail sales increased 0.6% to $74.3 billion in June. Sales were up in seven of nine subsectors, led by increases at general merchandise retailers. Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.2% in June, according to a report released Friday by Statistics Canada.
In volume terms, retail sales increased 1.5% in June. Retail sales were up 2.2% in the second quarter. In volume terms, quarterly sales increased 0.4%, added the federal agency.
Core retail sales rose 1.2% in June, posting their second consecutive monthly gain. The increase was led by higher sales at general merchandise retailers (+2.7%), up for a second consecutive month. In June, higher sales were also recorded at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (+3.1%), it said.
The sole decrease in core retail sales in June came from food and beverage retailers (-0.4%). The decrease in this subsector was led by sales at supermarkets and other grocery retailers (except convenience retailers), which were down 0.6% in June after increasing 0.8% in May, added Statistics Canada.
“Sales at motor vehicle and parts dealers were up 1.0% in June, rising for a third consecutive month. Higher sales at new car dealers (+1.5%) led the increase in this subsector. The largest decrease in the motor vehicle and parts dealers subsector came from used car dealers (-2.4%),” it said.
“The largest decrease in retail sales in June was observed at gasoline stations and fuel vendors (-4.1%), posting their first decline in four months. In volume terms, sales at gasoline stations and fuel vendors rose 4.2% in June.”
On a seasonally adjusted basis, retail e-commerce sales increased 9.9% to $5.7 billion in June, accounting for 7.7% of total retail trade, compared with 7.1% in May, said StatsCan.
“Statistics Canada is providing an advance estimate of retail sales, which suggests that sales decreased 0.8% in July. Owing to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses received from 56.5% of companies surveyed. The average final response rate for the survey over the previous 12 months was 87.3%.”
Andrew Grantham, Senior Economist, CIBC Capital Markets, said Canadian retail sales saw a strong end to Q2, but appear to have given back some of that strength at the start of the third quarter.
“Through the monthly volatility we still see a gradual improvement in consumer spending which should continue into next year, supported by expanded household benefits and an improving labour market, as well as hopefully in 2027 by an easing in inflationary pressures linked to gasoline prices,” he said.
Maria Solovieva, Economist, TD Economics, said: “Another solid month for retail sales, with both core spending and real activity rising for a second consecutive month. Taken together, the data point to ongoing real personal consumption growth in Q2 despite rising prices. Second-quarter GDP and consumption data are released next Friday, so we won’t have to wait long for the details on how consumers responded to the rise in inflation.
“Statistics Canada’s advance estimate points to a sizable decline in July, suggesting activity cooled heading into the third quarter as energy prices rose again. Our internal TD Spend data, which excludes some large categories like vehicle purchases, shows goods spending was flat in July.”
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