Quarterly Retail Commodity Survey

Led by strong increases in sales of automotive fuels, oils and additives as well as hardware, lawn and garden products, retailers in 2005 registered their highest year-over-year increase in retail sales since 2002.

In total, consumers spent $369.2 billion in retail stores last year, up 6.2% from 2004. This was the highest growth rate since 2002 when it was 6.4%. Sales for the fourth quarter increased 5.4% over the same quarter in 2004.

Proportionately, of every $100 in consumer spending in retail stores last year, consumers spent about $22 on food and beverages, $22 on motor vehicles, parts and services, just over $9 on automotive fuels, oils and additives, $9 on furniture, home furnishings and electronics, $8 on clothing, footwear and accessories, $8 on health and personal care products and $7 on hardware, lawn and garden products.

Sales of automotive fuels, oils and additives increased 17.7% to $34.2 billion, the strongest growth since 2000 and the second consecutive year of double-digit increases. The gain was fuelled largely by a 12.8% increase in the price of gasoline.

About nine cents of every retail dollar was spent on automotive fuels, oils and additives in 2005, compared to only six cents in 1998. Consumers spent more than twice as much on automotive fuels, oils and additives in 2005 than they did in 1998.

Housing boom boosts hardware, home renovation products

Canada's ongoing housing boom contributed to an 8.6% increase in sales of hardware, lawn and garden products. Of this commodity grouping, sales of the largest component, hardware and home renovation products, reached $19.9 billion in 2005, up 8.2% over 2004.

Lawn and garden products were also strong with $5.3 billion in sales, up 10.2% over 2004. Since 2001, sales of lawn and garden products have increased by about 10% each year.

At the same time, sales of furniture, home furnishings and electronics increased 5.4% to $33.3 billion. Within this commodity group, sales of home furnishings (draperies, bedding, flooring and artwork) were particularly strong, increasing 6.1%. Consumers spent 6.2% more on household appliances in 2005 over the previous year. Sales of home electronics such as televisions, cameras, computer hardware and software and telephones rose 4.5% to $11.9 billion.

Sales of motor vehicles, parts and services increased 5.5% to $80.8 billion, the strongest gain in three years. Incentive programs helped to boost sales of new vehicles in 2005 by 5.6%, the highest increase since 2002. Sales of new vehicles accounted for 55% of total sales for this category. Meanwhile, sales of used vehicles rose by only 1.8%, while revenues from the sale of automotive parts and accessories jumped 9.5%.

Strongest gain in food, beverage sales in six years

Food and beverage sales by retailers rose 5.5% in 2005. This was the strongest increase since 1999. Yet, it was still below the overall annual increase (+6.2%) in retail sales in 2005. The three major components of the commodity group (food, non-alcoholic and alcoholic beverages) all increased at a similar rate.

Annual sales of clothing, footwear and accessories rose 4.0% to $30.4 billion, the strongest gain since 1999. Clothing prices declined 1.3% in 2005 when compared to 2004. Of every $100 in spending in this category, $57 went to women's wear, $29 to men's clothing and $12 to children's clothing.

On the other hand, consumer spending in retail stores on health and personal care products gained 5.2%, the weakest year-over-year growth in five years. Sales of prescription drugs, which represented over one-half of the spending in this category, rose 7.1%. This was much lower than gains in both 2002 and 2003, which exceeded 10%. Year-over-year sales of over-the-counter drugs and vitamins were up 2.9% in 2005, after increasing 3.1% in 2004.

Fourth quarter 2005: Automotive fuels, oils again lead the way

Automotive fuels, oils and additives was again the commodity group with the strongest year-over-year increase in the fourth quarter of 2005. Sales of the commodity rose 16.9% in the fourth quarter of 2005, after a 26.0% increase in the third quarter. This was largely driven by a fourth quarter increase of 13.8% in the price at the pump.

Overall, consumers spent $98.6 billion in retail stores in the last three months of 2005, up 5.4% from the same quarter in 2004. This was the weakest year-over-year gain since the first quarter of 2005. Sales rose in all major commodity groups. The strongest increases were seen in hardware, lawn and garden products (+9.1%) and furniture, home furnishings and electronics (+6.1%).

Sales of motor vehicles, parts and services amounted to $18.8 billion in the fourth quarter of 2005, up 3.6% over the same quarter in 2004. This was the lowest year-over-year increase since the first quarter of 2005.

Sales of new vehicles in the fourth quarter rose 2.3% compared to the same quarter in 2004, while used vehicle sales declined 1.8%. Some of the incentive programs introduced at the end of the second quarter of 2005 were discontinued before the end of the year. Automotive parts and accessories (including tires) advanced 11.7% during the fourth quarter.

Note: The Quarterly Retail Commodity Survey collects national level retail sales by commodity, from a sub-sample of businesses in the Monthly Retail Trade Survey. Quarterly data have not been adjusted for seasonality. All percentage changes are year-over-year.

Available on CANSIM: table 080-0018.

Definitions, data sources and methods: 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), Distributive Trades Division.