According to Statistics Canada’s latest report, retail sales saw a modest boost in September, climbing 0.4% to $66.9 billion. Gains were driven by food and beverage retailers. However, the retail landscape remained mixed, with some sectors struggling.
Excluding gasoline stations, fuel vendors, and motor vehicle and parts dealers, core retail sales increased by 1.4%, marking a robust recovery after a 0.5% decline in August. Food and beverage retailers were the primary drivers, with sales rising by 3.0%. Supermarkets and grocery stores led this charge, posting a 3.3% increase after a notable 1.9% drop in August. Beer, wine, and liquor retailers also contributed significantly, recording a 4.4% rise, the first uptick in three months.
Building material and garden equipment retailers saw a 3.0% sales increase, reflecting seasonal trends as consumers prepared for colder months. However, clothing and accessories retailers bucked the upward trend, reporting a 0.8% decline, indicating weaker demand in that segment.
Sales at gasoline stations and fuel vendors fell by 2.3%, marking the fifth consecutive monthly decline. However, in volume terms, sales at these establishments increased by 3.2%, suggesting lower fuel prices rather than reduced consumer activity.
Motor vehicle and parts dealers also faced challenges, with sales down 0.7%. New car dealers recorded a similar decline, while used car dealers experienced a sharper drop of 5.2%. Other motor vehicle dealers posted a 2.0% decrease, which was partially offset by a 4.2% gain at automotive parts, accessories, and tire retailers.
Retail activity varied across provinces, with Alberta leading gains at 2.3% due to higher motor vehicle and parts sales. Quebec also showed strength, with a 0.6% increase in retail sales, driven by the Montréal metropolitan area’s 0.3% rise.
In contrast, Ontario experienced a slight decline of 0.1%, attributed to weaker sales at motor vehicle and parts dealers. The Toronto metropolitan area remained flat.
Canadian consumers continued to embrace online shopping, with retail e-commerce sales rising 3.3% in September to $4.1 billion. E-commerce accounted for 6.2% of total retail sales, up from 6.0% in August, highlighting the ongoing shift toward digital marketplaces.
Statistics Canada’s advance estimate suggests retail sales increased by 0.7% in October. However, the estimate, based on preliminary responses from 58.9% of surveyed companies, is subject to revision.
As Canadian consumers navigate fluctuating prices and shifting economic conditions, September’s data underscores the nuanced performance across subsectors, with food and beverage retailers providing a significant boost while automotive and fuel sectors continue to face challenges.