Canadian retail sales rose 0.5 percent to $73.0 billion in April, supported by stronger sales at gasoline stations and vehicle dealerships, while spending across much of the retail sector declined.
Sales increased in five of nine subsectors during the month. The largest gain came from gasoline stations and fuel vendors, where sales rose 5.1 percent. In volume terms, sales at fuel retailers increased 0.8 percent.
Motor vehicle and parts dealers also posted higher sales. The sector recorded a 1.7 percent increase after a slight decline in March. New car dealers reported a 1.8 percent gain, extending a string of monthly increases to four. Used vehicle dealers saw sales climb 5.1 percent after a 4.2 percent drop the previous month.
Excluding gasoline stations, fuel vendors and motor vehicle dealers, core retail sales fell 0.7 percent in April. It was the second consecutive monthly decline for the measure.
Food and beverage retailers led the decrease, with sales down 2.0 percent. General merchandise retailers recorded a 1.7 percent decline. Sales at sporting goods, hobby, musical instrument, book and miscellaneous retailers fell 1.5 percent, also marking a second straight monthly decrease.
One of the few areas of strength outside the automotive and fuel sectors was building material and garden equipment and supplies dealers. Sales rose 3.3 percent after a 4.5 percent decline in March.
Overall retail sales were unchanged in volume terms, indicating that higher dollar sales did not translate into increased quantities sold.
Retail sales increased in six provinces in April. Ontario recorded the largest gain in dollar terms, with sales rising 0.5 percent, led by motor vehicle and parts dealers. However, retail sales in the Toronto census metropolitan area declined 1.0 percent.
Alberta posted a 1.3 percent increase, supported by higher sales at gasoline stations and fuel vendors.
Manitoba recorded the largest provincial decline. Retail sales fell 1.8 percent, primarily because of weaker sales at motor vehicle and parts dealers.
Online retail activity also softened. Seasonally adjusted e-commerce sales fell 1.2 percent to $5.1 billion in April. E-commerce accounted for 7.0 percent of total retail trade, down slightly from 7.1 percent in March.
A preliminary estimate points to stronger retail activity in May. Early data suggest sales increased 1.0 percent during the month, although the figure is subject to revision as additional survey responses are received.