Retail Sales in Canada Grew by 0.4% in September, Led by the Food and Beverage Sector
In September, retail sales in Canada increased by 0.4% to reach $66.9 billion, with growth observed in six out of nine subsectors. Food and beverage retailers led this growth.
In the same month, core retail sales, excluding sales from gasoline stations, fuel vendors, and motor vehicle and parts dealers, rose by 1.4%. When measured in volume, retail sales increased by 0.8%.
In the third quarter of the year, retail sales rose by 0.9%, with a more pronounced increase of 1.3% when only volume was considered.
Following a decline in August, core retail sales rebounded in September, prominently featuring a 3.0% increase in food and beverage retailers. Supermarkets and other grocery stores (excluding convenience stores) experienced a significant recovery of 3.3% after a 1.9% drop in August. Beer, wine, and liquor stores, contributing to the sector's performance, reported a 4.4% increase in revenue after three months of decline.
Construction materials and garden equipment and supplies dealers also reported a 3.0% increase in sales in September.
The only subsector to record a decline in core retail sales was clothing and related accessories, which fell by 0.8%.
On the other hand, gasoline stations and fuel vendors experienced the most significant drop in retail sales, declining by 2.3% for five consecutive months. However, in volume terms, these sales actually increased by 3.2%.
Motor vehicle and parts dealers also faced a sales decrease of 0.7%, primarily due to low sales at new car dealerships, followed by used car dealers and other motor vehicle dealers. Nevertheless, automotive parts, accessories, and tire retailers experienced a positive change with a 4.2% increase in sales.
In September, retail sales increased in five provinces in Canada. Alberta led with a 2.3% increase, largely driven by motor vehicle and parts dealers. Quebec saw a modest growth of 0.6%, while the Montreal area recorded a 0.3% increase. Ontario experienced a slight contraction of 0.1% in retail sales, while sales in Toronto remained flat.
E-commerce retail sales in Canada also witnessed growth, increasing by 3.3% in September to reach $4.1 billion, accounting for 6.2% of total retail trade. This represents a slight increase from the 6.0% share recorded in August.
Looking ahead, Statistics Canada’s preliminary estimate indicates a potential increase of 0.7% in retail sales for October. However, this preliminary figure is subject to revision as it is based on a survey response rate of 58.9%, compared to last year's average final response rate of 88.9%.