Canadian retail sales rise sharply in June

Canadian retail sales rose sharply in the month of June, growing 23.7 percent sequentially, rising 1.3 percent above their pre-pandemic, February level. The rise in sales was mostly a volumes story. Stripping out rising prices, volumes rose 22.9 percent on the month.

Sales rose throughout all major subsectors. Vehicle sales continued to be in the driver’s seat of the recovery, rising by 53.4 percent on the month, and were responsible for more than half of June’s gain. Outsized gains were also seen in furniture stores, clothing and accessories stores, and sporting goods, hobby, and book & music retailers. Sales at gasoline stations continued to rise, driven by both higher volumes and prices, but remained 21 percent below their level in February.

The gains were less dramatic for other categories. Sales at personal care stores and building materials and garden equipment stores saw decent gains, with sales by 11.7 percent and 13 percent, respectively. Online sales have continued to ease, falling 13 percent in June, as more consumers returned to brick-and-mortar stores. Even so, they were still up 70 percent relative to their year-ago level.

Province wise, sales rose in all ten provinces. Ontario led the way, recording a rise of 33.8 percent as a wider swath of the economy was permitted to reopen in June. It was followed by Quebec and Nova Scotia. The Prairies also saw healthy gains, with sales in Albert rising by 19.2 percent followed by 16 percent gain in Manitoba and 15.6 percent rise in Saskatchewan.