In December, all nine retail subsectors experienced sales growth, with notable contributions from food and beverage retailers and motor vehicle and parts dealers.
Core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, also saw an impressive 2.5% increase. This surge was largely driven by a 3.5% rise in food and beverage retail sales. Additional gains were recorded in the alcohol retail sector, as beer, wine, and liquor outlets saw a 3.9% boost in sales.
The general merchandise sector showed a strong performance as well, with sales climbing by 3.2%. Apparel and accessory retailers also experienced growth, with a 3.1% rise in sales, further contributing to the overall positive retail climate.
Sales at motor vehicle and parts dealers saw a continued upward trajectory, increasing by 1.9% in December. New car dealers led the charge, with a 2.0% gain, marking their third consecutive monthly increase. The growth was also supported by strong sales at automotive parts, accessories, and tire retailers, which saw an increase of 4.7%, and used car dealers, who recorded a 3.2% boost.
Gasoline stations and fuel vendors saw a 4.2% increase in sales for December, marking a second consecutive monthly rise. In volume terms, sales in this subsector grew modestly by 0.7%, despite the overall decrease in gasoline prices for the year.
Retail sales rose in all provinces across the country, with Quebec and Ontario leading the charge. Quebec saw a notable 3.6% increase, bouncing back after a slight dip in November. In the Montréal metropolitan area, sales grew by 2.4%. Ontario’s 2.0% increase was primarily driven by higher sales at food and beverage retailers, with the Greater Toronto Area recording a 1.1% rise in retail sales.
Canada’s retail e-commerce sales also showed resilience, growing by 3.1% to reach $4.3 billion in December, representing 6.1% of total retail trade.
Looking at the year as a whole, Canadian retailers finished 2024 with total sales of $803.1 billion, marking a 1.3% increase compared to 2023. The year was characterized by a notable surge in sales from motor vehicle and parts dealers, up 2.9%, driven primarily by gains in new car sales. However, gasoline stations saw a 2.5% decline due to lower gasoline prices.
Core retail sales for the year rose by 1.3%, led by general merchandise retailers, which saw a 3.9% increase, and health and personal care stores, which rose by 4.6%. The food and beverage sector saw a modest 0.9% increase, with grocery stores continuing to show steady growth.
An advance estimate for January 2025 suggests a 0.4% decrease in retail sales, a preliminary figure that will be revised as more data becomes available. While this decline signals a potential slowdown, the ongoing recovery in key sectors such as food, beverage, and motor vehicles suggests a steady, though cautious, outlook for the year ahead.