Canada’s retail sales drop more than forecast in December

Statistics Canada announced on Friday that the Canadian retail sales fell 3.4 percent m-o-m to CAD53.38 billion in December, following an unrevised 1.3 percent m-o-m advance in November.

Economists had forecast a 2.5 percent m-o-m decline for December.

According to the report, sales decreased in 9 of 11 subsectors in December, accounting for 83.6 percent of total retail sales. Sales at motor vehicle and parts dealers declined 1.4 percent m-o-m, recording their largest decline since April. Meanwhile, sales at gasoline stations rose 0.3 percent m-o-m in December, recording their first increase in four months. Excluding motor vehicle and parts dealers, retail sales fell 4.1 percent m-o-m in December compared to a 2.1 percent m-o-m gain in November and economists’ forecast for a 2.0 percent m-o-m decrease. Core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, decreased 4.6 percent m-o-m in December, hurt by lower sales at sales at general merchandise stores (-7.6 percent m-o-m) and clothing and clothing accessories stores (-17.0 percent m-o-m), as well as sporting goods, hobby, book and music stores (-22.5 percent m-o-m).

In y-o-y terms, Canadian retail sales climbed 3.3 percent in December, following an unrevised 7.5 percent surge in November.

In 2020, Canadian retail sales declined 1.4 percent y-o-y to CAD606 billion. This was the largest annual decline since the 2009 recession.