Canada's retail sales rose to C$63.1B in June, up 11.0% year-over-year; largest contribution to increase came from higher sales at gasoline stations, up 53.6% year-over-year: Statistics Canada

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OTTAWA , August 19, 2022 (press release) –

Retail sales increased 1.1% to $63.1 billion in June, the sixth consecutive increase. Sales were up in 8 of 11 subsectors, representing 76.8% of retail trade. Higher sales at gasoline stations and motor vehicle and parts dealers led the increase.

Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—edged up 0.2%.

In volume terms, retail sales were up 0.2% in June.

Retail sales were up 3.2% in the second quarter. In volume terms, quarterly sales were up 0.9%.

Given the continually evolving economic situation, Statistics Canada is providing an advance estimate of retail sales, which suggests that sales decreased 2.0% in July. Owing to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses received from 36.5% of companies surveyed. The average final response rate for the survey over the previous 12 months has been 91.3%.

Chart 1: Retail sales increase in June

Higher sales at gasoline stations and motor vehicle and parts dealers lead retail sales
Leading the increase in retail sales in June were higher sales at gasoline stations (+3.9%), which recorded their sixth consecutive increase. In volume terms, sales at gasoline stations decreased 1.3%. Gasoline prices rose 6.2% on an unadjusted basis in June. Gas prices largely followed crude oil prices, which peaked in the first week of June but eased in the remaining weeks amid slowing demand worldwide on concerns of a global economic slowdown.

Sales at motor vehicle and parts dealers were up 1.8% in June. The increase was largely the result of higher sales at new car dealers (+2.9%). Higher sales were also reported at used car dealers (+1.7%), which recorded their fastest pace of growth since October 2021. Lower sales were reported at other motor vehicle dealers (-6.9%) and automotive parts, accessories and tire stores (-0.8%).

Core retail sales edge up on gains at general merchandise stores
Core retail sales edged up 0.2% in June. Higher sales were observed at general merchandise stores (+1.1%), which increased for a fourth consecutive month.

Higher sales were also observed at clothing and clothing accessories stores (+1.8%), which were led by gains in clothing stores (+2.1%) and jewellery, luggage and leather goods stores (+2.4%). Shoe stores (-0.7%) were the only store type in this subsector to decline.

The largest decline to core retail was observed at food and beverage stores, which decreased 1.1% in June, after increasing 1.7% in May. Lower sales at supermarkets and other grocery stores (-0.8%) and beer, wine and liquor stores (-2.9%) contributed to the decrease in this subsector in June.

Chart 2: Sales increase in 8 of 11 subsectors in June

Sales up in seven provinces
Retail sales increased in seven provinces in June. Leading the gain was Ontario (+1.7%) where motor vehicle and parts dealers contributed the most to the increase. In the census metropolitan area (CMA) of Toronto, sales were up 2.5%.

Sales increased 1.1% in British Columbia, led by higher sales at building material and garden equipment and supplies dealers. Sales were up 1.1% in the CMA of Vancouver.

Higher sales were also observed in Saskatchewan (+3.7%) on the strength of higher sales at motor vehicle and parts dealers.

Retail e-commerce sales in Canada
On a seasonally adjusted basis, retail e-commerce sales were up 4.5% in June.

On an unadjusted basis, retail e-commerce sales were down 5.3% year over year to $3.8 billion in June, accounting for 5.4% of total retail trade. The share of e-commerce sales out of total retail sales fell 1.0 percentage points compared with June 2021.

Note to readers
All data in this release are seasonally adjusted and expressed in current dollars, unless otherwise noted.

Seasonally adjusted data are data that have been modified to eliminate the effect of seasonal and calendar influences to allow for more meaningful comparisons of economic conditions from period to period. For more information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

The percentage change for the advance estimate of retail sales is calculated using seasonally adjusted data and is expressed in current dollars.

This early indicator is a special product being provided in the context of the COVID-19 pandemic to offer Canadians timely information on the retail sector. The data sources and methodology used are the same as those outlined on the Monthly Retail Trade Survey information page.

Trend-cycle estimates are included in selected charts as a complement to the seasonally adjusted series. These data represent a smoothed version of the seasonally adjusted time series and provide information on longer-term movements, including changes in direction underlying the series. For information on trend-cycle data, see Trend-cycle estimates – Frequently asked questions.

Both seasonally adjusted data and trend-cycle estimates are subject to revision as additional observations become available. These revisions could be extensive and could even lead to a reversal of movement, especially for the reference months near the end of the series or during periods of economic disruption.

Seasonally adjusted estimates for cannabis store retailers are presented in unadjusted form since no seasonal pattern has been established by official statistics yet. Establishing such a pattern requires several months of observed data. In the interim, the seasonally adjusted estimates for cannabis store retailers will be identical to the unadjusted figures.

Statistics Canada's retail e-commerce figures include the electronic sales of two distinct types of retailers. The first type does not have a storefront. These businesses are commonly referred to as pure-play Internet retailers and are classified under the North American Industry Classification System (NAICS) code 45411—electronic shopping and mail-order houses. The second type has a storefront and is commonly referred to as a brick-and-mortar retailer. If the online operations of a brick-and-mortar retailer are separately managed, they, too, are classified under NAICS code 45411.

Some common e-commerce transactions, such as travel and accommodation bookings, ticket purchases, and financial transactions, are not included in Canadian retail sales figures.

For more information on retail e-commerce in Canada, see "Retail E-Commerce in Canada."

Total retail sales expressed in volume terms are calculated by deflating current-dollar values using consumer price indexes.

Find more statistics on retail trade.

Real-time tables
Real-time tables 20-10-0054-01 and 20-10-0079-01 will be updated soon.

Next release
Data on retail trade for July will be released on September 23, 2022.

Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).

Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.

 

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