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Retail sales stay afloat in January

Statistics Canada reported this morning that retail sales rose 0.5% to $38.9 billion in January, the fifth increase in six months. Excluding sales at motor vehicle and parts dealers, however, retail sales declined 0.5%.

In volume terms, sales grew 0.3%, a sixth consecutive month of growth.

The agency goes on to say that gains were reported in five of 11 subsectors, representing 52% of total retail sales.

Sales at motor vehicle and parts dealers rose 3.7%. New car dealers led the increase, posting their highest monthly growth rate in three years at 4.6%. Higher sales of lower-cost passenger cars were the main contributor to this increase. Gains of 2.8% were also reported at used car dealers and automotive parts, accessories and tire stores, 1.8%.

General merchandise store sales rose 1.7% in January, more than offsetting a decline in December. After four consecutive monthly declines, sales at department stores increased 2.1%. Sales at other general merchandise stores rose for a third straight month, up 1.4%.

Clothing and clothing accessories stores increased 0.6%, a third increase in four months. Higher sales at shoe stores led the gain, rising 4.2%.

Building material and garden equipment and supplies dealers accounted for the largest sales decline in dollar terms in January, sliding 5.2% and offsetting a 4.0% increase in December.

Sales at food and beverage stores decreased 0.9% in January, mainly reflecting lower sales at supermarkets and other grocery stores.

Electronics and appliance stores registered a sales decline of 3.4%, down for a third month in a row.

Sales at gasoline stations were down for the second consecutive month, down 0.1% at that.