Retail trade

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After a decrease in February, retailers saw their sales remain relatively stable in March, edging up 0.1% to an estimated $35.5 billion.

However, the strong rise in January led to a 1.8% increase in retail sales in the first quarter of 2008, a growth rate similar to that of the previous quarter. Although retailers experienced moderate sales in the middle of 2007, retail sales have generally been rising at a rapid clip since 2004.

The sales increase posted by the automotive sector was offset by a notable 2.6% drop in sales at clothing and accessories stores. The exceptional level of snow accumulation in March, particularly in Quebec, seems to have hit clothing sales especially hard. Consumers seem to have delayed their purchases of spring clothing. Following a period of strong growth that began in 2006, sales for this sector have been rising at a much slower pace since the middle of 2007.

The weather also seems to have had a dampening effect on sales by general merchandise stores (that sell, among other things, clothing and lawn and garden products) and by building and outdoor home supplies stores.

Sales in the automotive sector were up 0.4% in March, the fifth increase in six months. All three components of this sector showed increases, led by a 0.7% rise in sales at gasoline stations. After declining in mid-2007, sales in this sector have picked up since late 2007.

According to the New Motor Vehicle Sales Survey, the number of new motor vehicles sold in the first quarter of 2008 rose by 9.1%, the strongest growth rate in 10 years. This rate of growth compares with a 3.0% increase in sales by new car dealers. The growth in the number of new vehicles sold was concentrated on passenger cars, which generally have a lower selling price than trucks.

Taking price changes into account, retail sales in constant dollars were up 0.5% in March, indicating an increase in sales volumes. With the exception of February 2008, sales in constant dollars have been on the rise since October 2007.

Sales down in Quebec

While seven provinces reported sales gains in March, sales were dragged down by a 3.1% drop in Quebec. However, sales in Quebec were up 1.9% for the first quarter of 2008 compared with the last quarter of 2007. Part of the March decline in Quebec reflects lower new motor vehicle sales, after an exceptionally strong January.

Heavy snowfalls seem to have deterred consumers from springtime shopping in most of the Atlantic provinces in March. Nova Scotia was the only Atlantic province that posted a significant increase in sales.

All provinces west of Quebec witnessed increased retail sales in March. Sales in British Colombia were up by 2.0% after declining in previous months. Saskatchewan saw its retail sales increase for the 11th consecutive month. Sales in Ontario partially recovered February's decline.

For information on related indicators, please consult the Latest statistics page of our website.

Available on CANSIM: tables 080-0014 to 080-0017.

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

The March 2008 issue of Retail Trade (63-005-XWE, free) will be available shortly.

Data on retail trade for April will be released on June 20.

For more information or to order data, contact Client Services (613-951-3549; toll-free 1-877-421-3067; retailinfo@statcan.gc.ca). For analytical information, or to enquire about the concepts, methods or data quality of this release, contact Claude Bilodeau (613-951-1816), Distributive Trades Division.

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