Overview
Statistics Canada reported Thursday that nominal retail sales in Canada climbed 1.0% in May to reach $73.7 billion, with every one of the nine tracked subsectors posting higher receipts. An advance estimate suggests retail sales rose 0.4% in June - a result that, if validated, would be the sixth consecutive monthly increase.
Sector breakdown
Gasoline stations and fuel vendors led the gains in May, posting a 3.1% increase in sales. Motor vehicle and parts dealers also registered growth, with sales up 0.7% - the second consecutive monthly increase - driven by new car dealers, which gained 0.5%.
However, when measured in volume terms, retail sales at gasoline stations and fuel vendors were down 2.7% in May.
Core retail activity
Core retail sales - defined as total retail sales excluding gasoline stations and motor vehicle and parts dealers - rose 0.9% in May, rebounding from a 0.7% decline in April. Within that core category, general merchandise retailers turned in a 1.0% gain, their first rise in three months. Retailers classified as sporting goods, hobby, musical instrument, book and miscellaneous saw sales climb 1.8%, also the first gain in three months.
Provincial performance
Retail sales increased in nine provinces. British Columbia recorded the largest provincial advance at 2.1%, a move attributed to higher sales at motor vehicle and parts dealers. Ontario’s retail receipts rose 0.5%, supported by stronger sales at gasoline stations. Nova Scotia was the lone province to show a decline, with sales down 0.8%.
E-commerce and volume measures
Retail e-commerce sales fell 1.5% on a seasonally adjusted basis to $5.0 billion in May, representing 6.8% of total retail trade compared with 7.0% in April. On a volume basis overall, retail sales increased 0.3% in May.
Takeaway
The May data show a broad-based pickup in nominal retail receipts across subsectors and provinces, with core retail categories and in-store segments such as general merchandise and sporting goods returning to growth. The advance estimate for June points to continued expansion, although confirmation will depend on the final June data release.