Quarterly Retail Commodity Survey

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An upswing in sales of commodities related to the automotive sector drove retail sales growth in the second quarter of 2007.

Led by strong increases in sales of commodities related to the automotive sector, retailers sold $109.9 billion of goods and services in retail stores in the second quarter of 2007, up 7.2% over the same quarter last year. This represented the largest year-over-year growth since the third quarter of 2002. Sales increased among all major commodity groups.

Sales of motor vehicles, parts and services increased 9.1% to $25.8 billion. This was the highest increase since the third quarter of 2002 and was due to the strength of sales of new motor vehicles, which rose 8.1%. Sales of new cars rose 4.3% after two consecutive declining quarters. The sales value of new trucks, vans, minivans and sport utility vehicles rose 11.6%, the fourth consecutive quarterly increase. Used vehicle sales were also strong, up 13.3%.

According to the New Motor Vehicle Sales Survey (NMVS), the sales value of trucks rose by 5.5% during the same period. The difference between the surveys' results is attributable to the inclusion, in the NMVS, of sales of heavy trucks by wholesalers, which declined substantially in 2007. In 2006, firms increased their purchases of heavy trucks in order to renew their fleets to meet new environmental regulations that came into effect in the United States at the beginning of 2007.

Sales of automotive fuels, oils and additives also rose (+9.1%) in the second quarter of 2007, representing the highest year-over-year increase since the second quarter of 2006.

The ongoing strength in the housing market continued to propel sales of furniture, home furnishings and electronics. In the second quarter, retailers sold $8.8 billion of these commodities (+8.5%), continuing an upward trend for the third consecutive quarter.

Within this category, sales of home furnishings were strong (+12.1%) while home electronics (+7.9%) and indoor furniture (+6.9%) grew less rapidly.

Sales of hardware, lawn and garden products advanced 6.6% to $9.3 billion in the second quarter. Within this category, hardware and home renovation products rose 8.1%, the highest increase since the third quarter of 2006. The largest component of this category, lumber and other building materials, rose 8.2% over the same quarter last year, a moderation of the double-digit growth in 2006.

After increasing at their fastest pace in nearly five years in the first quarter of 2007, year-over-year sales of health and personal care products rose 8.3%, the lowest increase in a year. Since the second quarter of 2006, sales of these commodities have been increasing at a faster pace than total retail sales. Sales of prescription drugs posted double-digit growth (+10.0%) while sales growth of over-the-counter drugs, vitamins and herbal remedies grew 8.5% in the second quarter, down from 13.5% in the first quarter.

Sales of clothing, footwear and accessories amounted to $8.3 billion, up a moderate 4.0% over the same period in 2006. Within this group, sales of women's clothing (+4.4%), children's clothing (+4.0%) and men's clothing (+3.6%) all rose moderately, while sales of footwear (+2.1%) had their weakest increase since the fourth quarter of 2004.

Clothing, footwear and accessories sales grew 5.6% in the second quarter in clothing and accessories stores, while sales dropped 0.4% in general merchandise stores (which include department stores). As a result, clothing and accessories stores accounted for 67% of sales of clothing, footwear and accessories, up from 66% in the second quarter of 2006, while general merchandisers saw their share of sales decline from 25% to 24% for the same period.

Sales of food and beverages rose 5.9% from the second quarter of 2006. At 20.4% of retail sales, it is this commodity's lowest share of total retail sales since the series began in 1998. Sales of alcoholic beverages were up 7.7%, with more moderate increases in food (+5.5%) and non-alcoholic beverages (+4.3%).

Year-over-year sales of sporting and leisure goods amounted to $3.3 billion, up 7.6% and continuing an upward trend since the fourth quarter of 2006.

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: tables 080-0018 and 080-0019.

Definitions, data sources and methods: survey number 2008.

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

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