According to our analysis USDCAD moved 13 pips on Canada Retail Sales data on 24 April 2024.
USDCAD (13 pips)
Charts are exported from JForex (Dukascopy).
Canadian Retail Sales Slightly Dip in February 2024
In February 2024, Canadian retail sales experienced a marginal decline, edging down 0.1% to $66.7 billion. This subtle decrease reflects a challenging month for several key subsectors, according to the latest data from Statistics Canada.
Subsector Performance
The decrease in retail sales was primarily led by a 2.2% drop at gasoline stations and fuel vendors. This sector also saw a significant reduction in volume terms, with sales decreasing by 3.9%. Despite the overall dip, not all areas experienced declines. The motor vehicle and parts dealers subsector, for example, saw an increase of 0.5%. Within this group, other motor vehicle dealers reported a robust growth of 5.1%, with new car dealers also up by 0.3%.
Core Retail Sales Hold Steady
Interestingly, when excluding gasoline stations and fuel vendors as well as motor vehicle and parts dealers, core retail sales remained unchanged from January. This stability is noteworthy, considering the fluctuations seen in specific subsectors. General merchandise retailers reported a rise of 1.1%, while health and personal care stores saw a smaller increase of 0.4%.
However, these gains were offset by decreases in other areas, including a 1.5% fall in sales at furniture, home furnishings, electronics, and appliance retailers. Clothing and related products retailers also faced challenges, with sales decreasing by 1.0%.
Regional Insights
Provincially, sales trends varied. Alberta witnessed the largest decline with a 1.1% decrease, primarily driven by lower sales at motor vehicle and parts dealers. In contrast, British Columbia recorded the largest increase, with sales rising by 1.2%, led by the same subsector.
In Ontario, a modest decrease of 0.2% was observed, with lower sales at gasoline stations and fuel vendors contributing to this trend. The Toronto metropolitan area experienced a more pronounced decrease of 2.3%.
E-commerce Continues to Grow
Retail e-commerce sales presented a brighter spot in February's retail landscape. On a seasonally adjusted basis, e-commerce sales climbed 1.9% to $3.8 billion, now representing 5.7% of total retail trade. This marks a slight increase from the 5.6% share observed in January, suggesting a continued shift towards online shopping among Canadian consumers.
Looking Ahead
Providing a glimpse into the future, Statistics Canada's advance retail indicator suggests that retail sales remained stable in March. This estimate, based on responses from 61.9% of companies surveyed, will be revised as more data becomes available. However, it offers a preliminary sign that the retail sector might be steadying after a fluctuating start to the year.
In conclusion, while the overall decrease in retail sales for February was slight, the varied performance across different sectors and regions highlights the ongoing challenges and opportunities within the Canadian retail landscape. As businesses continue to adapt to shifting consumer preferences and economic conditions, the coming months will be critical in shaping the trajectory of the retail sector in 2024.
Source: https://www150.statcan.gc.ca/n1/daily-quotidien/240424/dq240424a-eng.htm
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