Retail trade

Consumers went on a shopping spree in October, catching up primarily on clothing and automobile purchases. Retail sales advanced 1.7% in October to $26.0 billion, after remaining essentially flat since June. So far in 2002, retailers reported their largest monthly sales gain in June (+1.8%).

Before June, sales by retailers had remained essentially unchanged since the start of the year, after advancing rapidly in the last three months of 2001 and in January 2002. Monthly sales increases averaged 1.6% in that four-month period. Despite the lack of sustained growth so far this year, retail sales for the first ten months of 2002 were up 6.4% from the same period of 2001. In comparison, the sales growth in 2001 for the same period was 4.4%.

All retail sectors posted higher sales in October, with the largest increases in the clothing (+5.1%), automotive (+2.3%) and general merchandise (+1.6%) sectors. Consumers were back shopping for clothing and footwear in October after having stayed away in the summer months. In October, car dealers posted their strongest sales gains in almost a year, after experiencing essentially flat sales since April.

On average, retail prices changed little in October and September. In constant dollars, retail sales rose 1.6% in October, after falling 0.5% in September.

Consumers went clothes shopping in October

After staying away for three consecutive months, consumers were back shopping for clothing and footwear in October. Sales in clothing stores jumped 5.1% in October, marking the second largest monthly increase in nine years, after the 5.9% gain in June 2002. Just as cool weather in May pushed forward some purchases to June, warmer-than-usual weather in August and September may have led some consumers to postpone their back-to-school clothing purchases.

All types of clothing stores posted significant sales increases in October, with shoe stores (+7.4%) and other clothing stores (+6.2%) leading the way. Stores in the other clothing category sell a variety of women's, men's and children's clothing. So far in 2002, sales in the clothing sector have been fluctuating around their January level, after rising rapidly in the fall of 2001.

General merchandisers also benefited from increased spending on clothing and footwear in October. Sales in the general merchandise sector advanced 1.6% in October, after three consecutive monthly declines. Within this sector, department stores posted a 3.7% sales gain in October. Clothing and footwear purchases represent about one-third of every dollar spent in department stores. October's gain in department stores brought sales back to their January level, after a period of general increases that began in the spring of 2000.

Car buyers back in showrooms

Sales by motor and recreational vehicle dealers jumped 2.3% in October, after remaining essentially unchanged since April. Consumers were back in showrooms in October, pushing the number of new vehicles sold in that month to an all-time record of 148,626 units. With financing incentives still in place in October, the new 2003 models and the liquidation of 2002 vehicles provided added stimulus for sales. So far this year, motor and recreational vehicle dealers managed to sustain the sales level reached in the fall of 2001, bringing their year-to-date sales to 10.2% above those observed in the same period of 2001.

Sales in food stores increased 1.1% in October, after remaining flat in September. About one-quarter of all sales in food stores come from non-food items. Food retailers have generally experienced solid growth so far in 2002, pushing year-to-date sales up 4.6% from the same period of 2001. This was their strongest year-to-date gain, in the first ten months of the year, since 1997.

In October, consumers spent about the same in furniture stores (+0.2%) as in September. Sales in furniture stores have plateaued since May, after increasing rapidly since the spring of 2001. Despite the lack of growth in recent months, furniture store sales remain exceptionally strong. For the first ten months of 2002, sales in furniture stores were up 12.1% from the same period of 2001.

Strong sales across provinces

All provinces posted healthy gains in retail sales in October, ranging from 0.7% in Nova Scotia to 3.1% in Saskatchewan. The only exception was a 3.7% decline in Newfoundland and Labrador, which offset the increase observed in the previous month. Retail sales in Newfoundland and Labrador have remained essentially flat since the middle of 2001.

October's sales advances in Quebec (+1.9%) and Ontario (+1.8%) followed four months of little growth. Nevertheless, consumer spending in retail stores has increased considerably since the fall of 2001 in these provinces. During the first ten months of 2002, cumulative retail sales were up 6.6% in Quebec and 5.8% in Ontario from the same period of 2001.

Sales gains by retailers in Alberta (+2.0%) and British Columbia (+1.6%) followed three months of essentially flat sales. Retailers in these provinces have generally been reporting rising sales since the spring of 1999. Year-to-date retail sales advanced 8.7% in Alberta and 6.0% in British Columbia from the same period of 2001.

Related indicators for November

Total employment rose 0.3% in November, bringing the overall gain in the number of jobs created since the start of 2002 slightly above the half-million mark. According to preliminary results from the auto industry, the number of new motor vehicles sold in November fell sharply, following a 2.0% gain in the previous month. Housing starts declined 3.0% in November, after a 10.2% jump in October. Nevertheless, year-to-date results remain exceptionally strong for sales of new motor vehicles (+10.4%) and for housing starts (+26.2%) compared with the same period of 2001.

Available on CANSIM: tables 080-0001 to 080-0005.

Information on methods and data quality available in the Integrated Meta Data Base: survey number 2406.

The October 2002 issue of Retail trade (63-005-XIB, $16/$155) will be available soon.

For general information or to order data, contact Client Services (1-877-421-3067; 613-951-3549; retailinfo@statcan.gc.ca). For analytical information, or to enquire about the concepts, methods or data quality of this release, contact Paul Gratton (613-951-3541; paul.gratton@statcan.gc.ca), Distributive Trades Division.