Canada. Retail sales down

Retail sales in current dollars declined 0.3% in November to $35.2 billion, after rising for three consecutive months. A contributing factor was lower winter clothing sales as a result of unseasonably warm weather throughout most of Canada.

After removing the effects of price changes, particularly higher gasoline prices, retail sales in volume terms decreased 1.0% in November, the first decline since April 2009.

Sales declined in five of eight retail store sectors in November. A 3.6% decrease at clothing and accessories stores was the largest drop in this sector since September 2002, when above average temperatures also affected seasonal clothing purchases. Sales in the shoe, clothing accessories and jewellery stores trade group were the most affected by the warm weather, falling 6.8% in November following three months of sales increases. Sales at clothing stores fell 2.6% in November, more than offsetting the growth from the previous month.

Sales at general merchandisers, which include department stores, fell 2.8% in November. Lower sales of clothing and footwear, which account for about 15% of sales at this store type, according to the Retail Commodity Survey, were responsible for most of the decline.

The 0.5% drop in sales at miscellaneous retailers was due mainly to a 4.1% decrease in sales in the sporting goods, hobby, music and book stores trade group. In particular, sales were weak at sporting goods stores.

The automotive sector edged down 0.2% in November. Sales at new car dealers fell 2.2% after rising for six consecutive months. In contrast, gasoline stations (+2.4%) registered higher sales for a fourth consecutive month as prices at the pump increased. Sales at used and recreational motor vehicles and parts dealers (+1.1%) increased for a seventh consecutive month.

Sales at furniture, home furnishings and electronics stores rose 1.1%, their strongest increase of 2009.

A 1.1% increase at building and outdoor home supplies stores was led by higher sales at specialized building material and garden stores (+6.5%), which was the largest increase of this store type since December 2006. Sales at home centres and hardware stores were flat.

Sales down in seven provinces

Retail sales were lower in seven provinces in November. Ontario (-0.4%) was the largest contributor to the national decrease while Saskatchewan (-1.1%) experienced the largest decline in percentage terms.

Sales edged down 0.1% in the Atlantic provinces as declines in Newfoundland and Labrador (-0.7%) and New Brunswick (-1.0%) offset increases in Prince Edward Island (+0.9%) and Nova Scotia (+0.8%).

Retailers in British Columbia registered a sales increase of 0.6%, continuing the upward trend observed since the beginning of 2009.

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