Canadian retail sales posted a bigger-than-expected decline in July, falling 0.8% to $69.6 billion as consumer demand slowed across most sectors. According to Statistics Canada, sales declined in eight of nine subsectors, with food and beverage retailers contributing the most to the decline.
Excluding gas stations and motor vehicle and parts dealers, core retail sales fell 1.2%, paring a 2.2% gain in June. Retail sales volume, which does not take into account price changes, also fell 0.8% in the month.
Geographically, retail trade fell in five provinces, led by Ontario with a 1.6% decline, due to weaker auto sales. Newfoundland and Labrador fell 8.8%, coinciding with local wildfire disruptions, while Quebec was a bright spot with a small 0.2% increase.
Despite the overall downturn, e-commerce remained resilient, growing 2.2% to $4.3 billion in July and accounting for 6.1% of overall retail activity. Preliminary estimates from Statistics Canada show sales rebounding 1.0% in August, although this preliminary figure is based on half the usual survey response rate and is subject to revision.
