‘January’s strong sales, as well as other recent positive data, still put the first quarter on track for growth of around 3%.’ – Andrew Kelvin, TD Securities
A monthly report released by Statistics Canada showed that retail sales slipped more than experts estimated. In February, the amount of sales in the retail sector plunged 0.6% to C$47.8B ($35.1B) after a 2.3% spike in January. Negative growth was recorded in five out of 11 key sectors that represented 67% of the total retail sales. The largest contribution to the February drop was made by the gasoline stations sector, where sales tumbled 3.6% and marked the first decline in three months. The other key contributor was the motor vehicle and parts dealers sector, which posted a 1.8% sales fall for the first time in seven months. In the food and beverage shops sector the weakest sales were registered among liquor stores, which receipts plunged 1.7%. Meanwhile, the largest fall in February occurred in the jewellery, luggage and leather goods stores sub-sector, where sales declined 6.2% in the reported month. In contrast, sales at ordinary clothing and shoe stores soared 3.4% and 2.0%, respectively, and that was enough to offset the overall slip in the clothing sector. In addition, the health and personal care stores sector posted a sales increase of 2.0%. Furthermore, book and music stores also posted a 2.1% gain. Finally, e-commerce sales advanced 27.4% an annual basis, accounting for 2.4% of the total retail sector.
