Canadian retail sales increased for the third consecutive month, rising 0.6% to $48.9 billion in May

Sales were up in 5 of 11 subsectors, representing 56% of total retail trade.

Higher sales at motor vehicle and parts dealers were the main contributor to the gain. Excluding sales in this subsector, retail sales were down 0.1% in May.

After removing the effects of price changes, retail sales in volume terms rose 1.1%.

Following a decrease in April, sales at motor vehicle and parts dealers increased 2.4% in May. Higher sales at new car dealers (+2.7%) accounted for most of the gain at the subsector level. Used car dealers (+4.7%) and automotive parts, accessories and tire stores (+2.7%) also posted higher sales. Sales at other motor vehicle dealers (-4.2%) were down for the fourth time in five months.

Higher receipts were reported at food and beverage stores (+0.9%). The main contributors to the gain were supermarkets and other grocery stores (+0.9%) and beer, wine and liquor stores (+2.4%). Following a 3.5% increase in April, lower sales were reported at specialty food stores (-2.2%).

Sales at electronics and appliance stores (+1.2%) continued their upward trend in May, rising for a fifth consecutive month.