Canada’s retail sector weakened in September as overall sales fell 0.7 percent to $69.8 billion after the drop in vehicle-related spending.
The motor vehicle and parts industry posted the sharpest downturn, sliding almost 3 percent. New car dealers saw the biggest pullback. Ontario recorded a 1.2 percent decline in total retail sales. Toronto fell 2.3 percent.
Retail categories outside of fuel and vehicle purchases were largely unchanged. Building material and garden retailers declined for the third straight month, down 2 percent, pointing to weaker renovation activity. General merchandise stores also recorded a small decrease.
Food and beverage retailers saw an increase in higher sales at beer, wine, and liquor outlets and small gains at grocery stores.
Six provinces reported lower sales. Along with Ontario, British Columbia posted a 0.9 percent drop due mainly to weaker building and renovation spending. Vancouver fell 1 percent.
Nova Scotia reported the largest monthly gain at 1.5 percent due to stronger vehicle sales. Whether that momentum can continue remains uncertain, given the national decline in the same category.
E-commerce sales fell 3.5 percent to $4.1 billion, representing 5.9 percent of all retail activity, slightly lower than August’s 6.1 percent.
Overall, the September results show a retail landscape that continues to struggle for momentum. Cooler demand for big-ticket items and uneven provincial performance point to a cautious consumer environment as households face ongoing financial pressures.