Quarterly Retail Commodity Survey

Retail sales of all major commodity groups were up in 2002 compared with 2001. For the second straight year, the increase in sales of health and personal care products outstripped all other categories.

Across all commodities, consumers spent a total of $307.5 billion in retail stores in 2002, up 6.0%, compared with the 4.4% annual increase in 2001.

Large increase in spending on health and personal care products

Spending on health and personal care products - everything from prescription drugs, over-the-counter drugs and vitamins to eyewear, cosmetics and other toiletries - increased 9.2% to $23.1 billion in 2002. About 45% of this spending was on prescription drugs, which registered double-digit growth (+12.2%) for the third consecutive year. Sales of non-prescription drugs and vitamins rose 8.3% to $3.9 billion.

Over one-third of retail spending goes to motor vehicles, related products and services

Consumers again devoted more than one-third of their retail spending ($112.8 billion) in 2002 to motor vehicles and related products and services, including gasoline and oil. In contrast, just over one-fifth of retail spending ($66.6 billion) was devoted to the second largest category, food and beverages (including alcoholic beverages).

Spending on motor vehicles, parts and services (excluding gas and oil) amounted to $90.0 billion, up 7.5% from 2001 - the largest annual increase since the start of the Quarterly Retail Commodity Survey in 1997. Sales of new vehicles (cars, trucks, vans and sport utility vehicles) reached record levels in 2002. This increase in sales (+9.1%) was largely due to incentive programs and low interest rates. Sales of used vehicles were up 7.1%. In addition, consumers spent $22.8 billion on gas and oil in 2002, up 3.4% from 2001. Although volatile, gas prices on average declined almost 1% at the pump in 2002.

Jump in sales of home furnishings and electronics

Consumers spent $24.4 billion on home furnishings and electronics (including furniture) in 2002, up 7.5% from 2001. This gain outpaced the sales increase of 5.5% in 2001. Sales in the home furnishings sub-category (floor coverings, draperies, bedding and home decorating products) increased 8.2%, about the same as in 2001.

Furniture sales, which accounted for almost one-quarter of all sales in this category, rose 6.7%. Sales of major appliances rose 12.2%, the strongest growth since the survey started and the first annual double-digit growth. The robust housing market and low borrowing costs in 2002 influenced sales of these commodities.

Sales of home furnishings and electronics were very strong in specialty stores, rising 10.5% from 2001. In contrast, these sales were up only 2.1% in general merchandise stores.

Clothing, footwear and accessories show the weakest gains since start of survey

Sales of clothing, footwear and accessories reached $27.2 billion in 2002, up 1.8% from 2001, the weakest gain since the start of the survey in 1997. Clothing prices dropped 1% in 2002 from 2001.

Within this group, consumers spent $11.6 billion on women's clothing and $6.1 billion on men's clothing. Proportionally, consumers spent 55 cents of every clothing dollar on women's clothing, compared with only 29 cents on men's and 13 cents on children's clothing.

Fourth quarter 2002: Weakest growth in sales in more than a year

Year-over-year sales were up for all major commodity groups in the fourth quarter. Consumers spent $82.8 billion, up 5.0% from the fourth quarter of 2001. Although still a strong increase, this was the weakest year-over-year growth since the third quarter of 2001, when sales were affected by the events of September 11.

Weaker-than-usual year-over-year sales of motor vehicles, parts and services (+1.9%) and home furnishings and electronics, including furniture (+4.1%) contributed to the slower growth in sales. As well, sales of clothing, footwear and accessories increased only 1.0% from the fourth quarter of 2001.

Within the home furnishings and electronics category, sales of major appliances continued to be strong, rising 11.5%. This was the fourth consecutive quarter of double-digit year-over-year growth. Sales in the home furnishings sub-category (floor coverings, draperies, bedding and home decorating products) were up 5.0% from the fourth quarter of 2001. Furniture sales remained virtually unchanged.

Consumers spent $6.1 billion on gas and oil in the fourth quarter of 2002, a 21.5% surge from the fourth quarter of 2001. This was the largest year-over-year increase since the second quarter of 2000 and was largely due to a 16.0% increase in gas prices at the pump.

Year-over-year sales for health and personal care products advanced 7.1% in the fourth quarter. This was the lowest year-over-year growth in two years. Within this category, sales of prescription drugs rose 10.3%; in the previous three quarters, the year-over-year increase was at least 12.5%. Sales of over-the-counter drugs and vitamins were up 7.7%.

Available on CANSIM: table 080-0010.

Information on methods and data quality available in the Integrated Meta Data Base: survey number 2008.

For general information or to order data, contact Client Services (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.