Retail trade

Retail sales fell 0.3% in November to $26.3 billion, after remaining essentially flat in October (+0.1%). Even though the majority of retailers experienced sales increases in November, lower demand for motor vehicles pulled down total retail sales. Excluding sales by motor and recreational vehicle dealers, the largest component of the automotive sector, retail sales advanced 0.6% in November.

Retail sales have weakened since the peak of $26.6 billion reached last August, mainly because of weaker sales by auto dealers. Consequently, sales returned to the average level seen in the first half of 2003.

Cumulative retail sales for the first 11 months of 2003 were 3.3% above those in the same period of 2002. This represents about half the 6.3% growth rate observed in the first 11 months of 2002.

However, year-to-date retail sales growth is considerably different when removing sales by motor and recreational vehicle dealers. Cumulative retail sales, minus auto sales, for the first 11 months of 2003 advanced 4.5%, compared with an increase of 5.4% in the same period of 2002.

In constant dollars, retail sales fell 0.6% in November, after increasing 0.5% in October.

November's weakness in retail sales was concentrated in the automotive sector (-1.8%), drug stores (-0.7%) and "other retail" stores (-0.2%). Other semi-durable goods stores, such as toy retailers and bookstores, were behind the soft decline observed in "other retail" stores.

In contrast, retailers in the furniture (+1.9%), clothing (+1.2%), general merchandise (+1.0%) and food (+0.6%) sectors enjoyed healthy sales gains in November.

Car dealers experience sales decline

Sales in the automotive sector fell for a fourth consecutive month in November (-1.8%). Motor and recreational vehicle dealers (-3.1%) and retailers of automotive parts, accessories and services (-0.7%) were behind November's sales decline in the automotive sector.

Sales by motor and recreational vehicle dealers fell to their lowest level in two years in November. In spite of attractive incentives, sales have fallen 7.7% since July.

Drugstore sales fell for only the second time so far in 2003, down 0.7% in November. Consumer spending in drugstores has generally been increasing since the spring of 2000.

Consumers return to furniture, clothing and general merchandise stores

Consumers returned to furniture stores in a buying mood, pushing sales up 1.9% in November. Sales in furniture stores had remained essentially flat in October (+0.2%) and dropped 1.7% in September. Despite showing half the growth rate of 2002, furniture stores are leading other retailers with a 6.0% cumulative sales gain in the first 11 months of 2003.

Sales in clothing stores advanced 1.2% in November, after remaining essentially unchanged in October (-0.1%). November's gain pushed sales up to their June level. Clothing stores have experienced seesawing sales in the last two years, resulting in a mere 1.0% overall gain since December 2001. Over that period, sales fell in shoe stores and men's clothing stores, while remaining essentially flat in women's clothing stores. Stores in the "other clothing" category, selling a variety of women's, men's and children's clothing, posted the only sales gain (+5.5%) over the last two years.

Retailers in the general merchandise sector enjoyed a 1.0% sales increase in November, after two months of weak results. Within this sector, sales by other general merchandise stores jumped 2.0% in November, while sales in department stores increased only 0.3%. General merchandisers have generally enjoyed rising sales since the start of 2003, after experiencing essentially flat sales in the second half of 2002.

Retail sales down in six provinces

In November, consumer spending in retail stores fell in Prince Edward Island (-2.3%), Saskatchewan (-1.0%), New Brunswick (-0.8%), Nova Scotia (-0.7%), Ontario (-0.6%) and Quebec (-0.6%).

Ontario's retail sales fell for a fourth straight month in November. Retail sales in Quebec have remained essentially flat since last June, while sales in Saskatchewan have generally been declining since March 2003. Retailers in Prince Edward Island have seen little change in sales in the last two years. In New Brunswick, consumers have generally been reducing their spending in retail stores since April 2003. Retail sales in Nova Scotia have declined slightly since last July.

Related indicators for December

Growth in total employment remained strong in December (+0.3%). A total of 219,000 jobs have been created in the last four months of 2003, compared with only 52,000 in the first eight months of the year. Housing starts advanced 1.2% in December, after a sizable 10.8% drop in November. In 2003, the activity on new housing projects reached its highest level since 1988. It is estimated that the number of new motor vehicles sold in December fell about 9% from November, based on preliminary data from the auto industry.

Available on CANSIM: tables 080-0001 to 080-0005 and 076-0005.

Definitions, data sources and methods: survey numbers, including related surveys, 2406 and 2408.

The November 2003 issue of Retail Trade (63-005-XIB, $18/$166) will be available soon.

Data on retail trade for December 2003 will be released on February 26.

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), Distributive Trades Division.