The Daily. Wednesday, April 10, 2002

Quarterly Retail Commodity Survey

Consumer spending in retail stores increased for all major commodities in 2001, especially for health and personal care products as well as home furnishings and electronics.

Retailers sold just under $21.0 billion worth of health care and personal products, such as cosmetics, prescription and over-the-counter drugs, vitamins, eyewear and other toiletries, up 9.0% from 2000. This was the highest annual increase of all the major commodity groups. Spending on home furnishings and electronics rose 6.9% to just under $23.0 billion.

Higher prescription drug prices (+4.0% from 2000) explain only part of the annual increase in spending on health and personal care products. Within the category, sales of prescription drugs rose 10.9% from 2000. Sales of non-prescription drugs, including vitamins and supplements, increased 7.6%.

Drug stores captured about 56% of the health and personal care market in 2001. However, this proportion was down from about 62% in 1997. In contrast, food stores captured a greater share, rising to 19% in 2001 from 16% in 1997.

Annual sales, all retail stores

Overall consumer spending in retail stores increased 4.5% in 2001 despite worries of an economic slowdown. However, this was the weakest annual gain since 1998. Total sales in 2001 hit $290.5 billion.

Note to readers The Quarterly Retail Commodity Survey analyses quarterly retail sales at the national level on the basis of commodities, using data from the Monthly Retail Trade Survey. The survey was designed to break down the sales of retail industries into commodities, allowing for the study of commodities across, as well as within, retail industries.

In the fourth quarter, consumer spending was up 5.5% compared with the fourth quarter of 2000. This followed a weak 2.1% year-over-year increase in the third quarter, largely in reaction to the events of September 11.

More than one-third of total consumer spending on vehicles and gas

Consumers devoted more than one-third of their spending in retail stores in 2001 to motor vehicles and related products and services, including gasoline and oil. In contrast, they spent only about one-fifth on food and beverages.

Total retail spending on new and used cars and trucks as well as parts, services, gasoline and oil, hit $105.9 billion in 2001, up 3.7% from 2000. This represented just over 36% of total retail spending in stores. Consumers spent $63.9 billion on food and beverages, up 3.4%. This accounted for 22% of total spending.

Sales of new motor vehicles increased 4.0% in 2001, and used vehicle sales rose 6.3%. New motor vehicles accounted for two-thirds of all motor vehicle sales, and used vehicles the remaining one-third.

Consumers spent $21.9 billion on gas and oil, virtually unchanged from 2000. This follows large price-driven annual increases of 23.5% in 2000 and 12.0% in 1999. Lower gasoline prices in the latter part of 2001 helped to stabilize this spending.

Sales of home furnishings and electronics did well in 2001 but fell short of previous years' growth

Although strong, the 6.9% increase in home furnishings and electronics sales in 2001 was lower than the annual increases of the previous three years.

Within the category, results were mixed. Although shoppers spent more on furniture (+5.1%) and home electronics (+6.9%), these were the smallest annual rises since the survey began in 1997.

However, sales of appliances rose 6.6%, their biggest annual increase since the start of the survey, due to strong sales of small electrical appliances (+8.5%).

As well, sales of home furnishings other than furniture and appliances, such as bedding, linens, floor coverings, draperies, lamps and artwork did very well - up 9.1%, the highest annual increase since the start of the survey. Sales of these products in specialty stores were very strong - up 14.4% over 2000. In comparison, these sales rose only 1.4% in general merchandise stores.

In the electronics category, sales of telephones and home office electronics soared 16.4%, likely the result of the increased popularity of cellular telephones. In addition, sales of televisions and audio/video equipment, as well as computers and software, were both up 6.6%. (For historical reasons, stores specializing in selling computers are classified as wholesalers, and are therefore excluded from these estimates).

Sales of home electronics rose 8.5% in specialty stores, compared with 5.4% in general merchandise stores.

Weakest gains in clothing, footwear

Clothing, footwear and accessories recorded sales of $26.9 billion, up 2.9% in 2001, the weakest annual gain since the inception of the survey. Within the clothing category, spending on children's and infants' clothing was up 5.8%, followed by women's clothing (+4.1%). Spending on men's clothing fell 0.7%, the first decline since the survey started.

Spending on women's clothing amounted to $11.5 billion in 2001, or 55% of all clothing expenditures, compared with $6.1 billion spent on men's clothing.

Sales results varied depending on the type of retailer. Sales of clothing, footwear and accessories at general merchandise stores were nearly unchanged (-0.4%) in 2001 after declining in 2000. However, in 2001, sales in specialty stores were up 4.0% and sales at sporting goods stores rose 6.5%.

Fourth quarter sales up

Consumers spent $78.9 billion in retail stores in the fourth quarter, up 5.5% over the fourth quarter of 2000. (Quarterly data have not been adjusted for seasonality; all percentage changes are year-over-year).

The fourth quarter increase was stronger than the annual year-over-year growth and was largely due to strong sales of motor vehicles, parts and services (+12.1%) and home furnishings and electronics (+9.6%). Incentive programs for motor vehicles, a strong housing market and a possible stay-at-home effect after the events of September 11 helped to boost sales of automobiles and home furnishings and electronics.

Quarterly sales, all retail stores

Within the home furnishings and electronics category, consumers spent 12.3% more on televisions and audio/video equipment, the largest year-over-year increase since the second quarter of 2000. Sales of the latest electronic products for Christmas may have helped to stimulate sales in this category. Computer components, software and related equipment were up 10.6%.

Consumers spent 16.5% less on gas and oil in the fourth quarter, due to lower prices at the pump.

Expenditures on health and personal care products were up 9.7% in the fourth quarter. Within this category, sales of personal care items such as cosmetics and toiletries recorded the largest year-over-year quarterly increase (+11.6%) since the start of the survey.

Sales of prescription drugs increased 9.7% in the fourth quarter, following four consecutive quarters of double-digit growth.

Available on CANSIM: table 080-0010.

To order data, or for general information, contact the Client Services Unit (1-877-421-3067; 613-951-3549; retailinfo@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Ruth Barnes (613-951-6190; ruth.barnes@statcan.gc.ca), Distributive Trades Division.

Commodity share of sales within store types

2001

Commodity share of sales across store types

2001