Retail trade

Retail sales advanced at the fastest rate of growth in four months in November, and nearly double the pace of the previous month. New motor vehicle sales were again a strong contributor to these gains.

Retail sales increased 1.1% in November from the previous month to a record high $31.3 billion.

Excluding sales by dealers of new, used and recreational vehicles and auto parts, retail sales edged up 0.1% from October. Lower prices for gasoline offset gains made in the automotive sector. In general, non-auto retailers saw their sales decline only twice in the first 11 months of 2005.

Besides the big 1.9% gain made in the auto sector, three other sectors showed strong increases; building and outdoor home supplies stores (+2.8%), clothing and accessories stores (+2.5%), and miscellaneous retailers (+1.2%). Pharmacies and personal care goods stores advanced 0.7% in November.

Sales in general merchandise stores, furniture, home furnishings and electronics stores, and food and beverage stores remained essentially unchanged from October.

Once prices are taken into account, constant dollar retail sales rose 1.3% in November after increasing 1.5% in October.

Auto sales levels back in line

Sales at new car dealers rose 4.9% in November after a rebound in October. These two months of gains saw new car dealers recover nearly all the lost sales of August and September and brought them back in line with recent historical trends.

Lower prices for gasoline exerted downward pressure on sales from the auto sector, and resulted in a 3.2% decline in the value of sales at gas stations. Over the long run, gasoline station sales have been on the rise since April 2003. Prices have played a major role in this run-up.

In the building and outdoor home supplies sector, shoppers spent more money at both home centres and hardware stores (+2.3%) and specialized building material and garden stores (+5.3%). This sector as a whole is poised to have the strongest year-over-year performance of 2005. November represented a 9.9% increase over the same month last year and this was not exceptional for this sector.

Sales at clothing store were up 2.7% in November. This continued 11 months of see-sawing between gains and losses. After a surge at the start of 2005, sales growth in the clothing and accessories sector has either been flat or declining. Prior to this, the long-term trend showed a slow advance.

For the sector as a whole, miscellaneous retailers such as office supply, sporting goods, hobby, music and book stores increased their sales by 1.2% in November. This continued three months of uninterrupted sales growth, with only three declines since October 2004.

Alberta, Quebec and Ontario lead the pack

Retail sales increased or remained essentially unchanged in all provinces and territories in November. Retailers in Alberta (+1.4%), Quebec (+1.3%) and Ontario (+1.1%) were the star performers, reflecting the increase in auto sector sales, as seen at the national level.

Prince Edward Island (+2.2%) also made a notable gain above the national pace. Higher sales in building and outdoor home supplies stores as well as food and beverage stores were largely responsible for the retail sales advances.

Related indicators for December

Total employment was virtually unchanged in December from the previous month. In addition, the overall unemployment rate edged up to 6.5%. Housing starts were up 1.2% in December to a seasonally adjusted annual rate of 227,700 units, according to the Canada Mortgage and Housing Corporation. Estimated from early results supplied by the auto industry, the number of new motor vehicles sold in December was little changed from November.

Available on CANSIM: tables 080-0014 to 080-0017 and 076-0005.

Definitions, data sources and methods: survey numbers, including related surveys, 2406 and 2408.

The November issue of Retail Trade (63-005-XIE, $18/$166) will soon be available.

Data on retail trade for December will be released on February 21.

For more information or to order data, contact Client Services (1-877-421-3067; 613-951-3549; retailinfo@statcan.ca). For analytical information, or to enquire about the concepts, methods or data quality of this release, contact Jane Lin (613-951-9691), Distributive Trades Division.