Retail Sales in Canada Increased by 1.4% in January 2023

• Retail sales in Canada increased by 1.4% in January 2023, with seven out of nine subsectors reporting higher sales.
• Sales at motor vehicle and parts dealers and gasoline stations and fuel vendors increased by 3.0% and 2.9%, respectively.
• Retail e-commerce sales in Canada decreased by 0.1% to $3.3 billion in January, accounting for 5.0% of total retail trade.

Retail Sales in Canada increased by 1.4% in January 2023 to $66.4 billion, with seven out of nine subsectors reporting higher sales, representing 88.7% of retail trade. The increase was led by higher sales at motor vehicle and parts dealers, up by 3.0%, and gasoline stations and fuel vendors, up by 2.9%.

Core retail sales, which exclude motor vehicle and parts dealers and gasoline stations, and fuel vendors, increased by 0.5% in January. Sales were up in three out of four store types, with food and beverage retailers leading the increase. Clothing, clothing accessories, shoes, jewelry, luggage, and leather goods retailers also recorded an increase in sales.

Retail sales increased in all provinces in January, with the largest increase observed in Alberta at 2.9%, followed by British Columbia at 1.8% and Ontario at 0.7%.

Retail e-commerce sales in Canada decreased by 0.1% to $3.3 billion in January, accounting for 5.0% of total retail trade.

New Classification Structure in MRTS

Statistics Canada started using the new 2022 North American Industry Classification System (NAICS 2022) classification structure in January 2023 for Monthly Retail Trade Survey (MRTS) figures. The new classification structure has broadened the scope of the MRTS. While the seasonal variation for many subsectors and store types remains relatively unchanged, new sales level estimates reflect the inclusion of this new wider scope of retailers.

Increase in Retail Sales in January 2023

Sales at Motor Vehicle and Parts Dealers

Sales at motor vehicle and parts dealers increased by 3.0% in January 2023, marking the sixth consecutive monthly increase. The gain was led by higher sales at new car dealers, which posted its second-largest increase since May 2022. Sales were also up at other motor vehicle dealers and used car dealers.

Sales at Gasoline Stations and Fuel Vendors

After the largest decline since July 2022 in December, sales at gasoline stations and fuel vendors increased by 2.9% in January 2023. In volume terms, sales at gasoline stations and fuel vendors decreased by 0.6%. The increase was largely related to refinery closures in the southwestern United States following winter storm Elliott.

Core Retail Sales

Core retail sales rose by 0.5% in January, led by food and beverage retailers. Sales were up at beer, wine, and liquor retailers, convenience retailers and vending machine operators, and specialty food retailers. Prices for food purchased from stores were up 10.4% on a year-over-year basis in January. Clothing, clothing accessories, shoes, jewelry, luggage, and leather goods retailers also recorded an increase in sales.

Retail E-Commerce Sales

Retail e-commerce sales in Canada decreased by 0.1% to $3.3 billion in January, accounting for 5.0% of total retail trade compared with 5.1% in December.

Note: All values are in Canadian dollars (CAD). “Core Retail Sales” exclude motor vehicle and parts dealers, gasoline stations, and fuel vendors.

Source: https://www.statcan.gc.ca/