Wholesale trade, September 2022

Released: 2022-11-15

Wholesale sales rise slightly in September

In September, wholesale sales rose 0.1% to $81.8 billion, with the largest increases coming from personal and household goods and food, beverage and tobacco. Sales rose in five of seven subsectors, which accounts for 70.2% of wholesale sales.

Meanwhile, constant dollar sales fell 0.2% in September.

Chart 1 
Wholesale sales increase in September

Personal and household goods led the increase in September

Sales of personal and household goods increased 4.3% to $11.2 billion, the largest monthly increase since June 2020. The bulk of the rise was seen by pharmaceuticals and pharmacy supplies wholesalers (+5.7% to $6.2 billion), the second consecutive monthly rise, reaching the second highest level since February 2022. The industry's growth correlates with higher Canadian imports of pharmaceutical products and is reflective of the recent availability of the latest COVID-19 vaccine. Growth in the toiletries, cosmetics and sundries industry (+4.9%) and in the personal goods industry (+3.7%) also contributed to the subsector increase.

Sales in the food, beverage and tobacco subsector rose 1.9% to $14.9 billion in September, mainly due to higher sales in the food industry (+2.3% to $13.3 billion). This subsector reported an increase for the third consecutive month, reaching a record-high sales level. Overall, as reported by the Consumer Price Index, prices for groceries rose at the fastest pace since 1981, as the supply of food continues to be impacted by supply chain disruptions, geopolitical tensions, extreme weather, and higher input costs.

Following a robust August, the miscellaneous subsector posted the largest drop since April 2020, with sales falling 5.8% to $12.3 billion in September 2022. Sales in three of the five component industries fell, with a substantial decrease in the agricultural supplies industry (-13.4% to $4.7 billion). Agricultural supply wholesalers reported completion of contracts by the beginning of fall in preparation of their year-end, which is reflected in the steady climb of sales since May 2022.

Overall, sales in the third quarter of 2022 rose 1.2% to $243.8 billion, a 13.1% increase from the same quarter in 2021. This was the fourth consecutive quarterly increase, with the largest increases coming from the machinery, equipment and supplies, and miscellaneous goods subsectors. In contrast, the largest quarterly decreases came from the building material and supplies and the personal and household goods subsectors. This was the second consecutive quarterly decline for both of these subsectors.

Constant dollar sales rose 0.3% in the third quarter of 2022 when compared with the previous quarter.

Quebec and Ontario lead provincial sales

Sales increased in three provinces and one territory in September. The increase was predominantly due to higher sales in Quebec and Ontario, while Saskatchewan recorded the largest drop.

Quebec reported the highest provincial increase in sales in September, up 1.4% to $14.7 billion. Sales rose in five of the seven subsectors. The driving factor for sales in this province was the personal and household goods subsector (+4.5% to $3.2 billion) and the motor vehicle and motor vehicle parts and accessories subsector (+7.3% to $1.5 billion). The growth in sales for this province was partially offset by a 4.2% decline in the machinery, equipment and supplies subsector.

Sales in Ontario edged up 0.2% to $41.5 billion, as sales rose in two of seven subsectors. The slight increase was led by higher sales in the personal and household goods subsector (+5.7% to $6.5 billion) and the food, beverage and tobacco subsector (+2.5% to $6.9 billion). This was mitigated by a 5.4% drop in the miscellaneous subsector.

Saskatchewan saw the largest decline among the remaining provinces and territories, with a decrease of 2.5% to $4.2 billion. Despite growth in six of seven subsectors, a sharp decrease in the agricultural supplies industry (-8.7% to $2.6 billion) led the overall provincial sales decline.

Six provinces and two territories had higher sales in the third quarter of 2022 when compared with the previous quarter. Leading the gains were Ontario (+1.7%) and Saskatchewan (+13.2%). These increases were partially offset by declines in British Columbia (-3.4%) and Quebec (-1.4%).

Inventories level continue to grow

Inventories rose 1.2% to $125 billion, the eighth consecutive monthly increase. Six of the seven subsectors reported increased inventories, led by the machinery, equipment and supplies subsector and by the miscellaneous subsector. Building material and supplies was the only subsector with a decrease in inventories.

Inventories in the machinery, equipment and supplies subsector rose by 1.5% to $34.0 billion. This increase was mainly led by the computer and communications equipment and supplies and the other machinery, equipment and supplies industries. The machinery, equipment and supplies subsector accounted for the largest share of wholesale trade inventories, at 27.2%.

In the miscellaneous subsector, inventory levels increased 1.9% to $18.9 billion. The increase was mainly due to the agricultural supplies industry, where inventories grew 3.2% to $9.3 billion, followed by the chemical (excluding agricultural) and allied product industry, up 2.5% to $2.0 billion.

The personal and household goods subsector also contributed to the growth in inventory levels, with a 1.4% increase to $20.1 billion. This growth was largely due to the textile, clothing and footwear industry, with an increase of 3.9% to $4.1 billion, followed by the personal goods industry, up by 5.4% to $2.8 billion.

The inventory-to-sales ratio increased from 1.52 in August to 1.53 in September. This ratio is a measure of the time (in months) required to exhaust inventories if sales were to remain at their current levels.

Wholesale inventories increased by 5.9% in the third quarter of 2022. This increase was led by growth in stocks of machinery, equipment and supplies merchant wholesalers (+6.2%), building material and supplies (+6.8%) and miscellaneous (+7.8%). Inventories were up in all subsectors for the second consecutive quarter.

Products

The product "Monthly Wholesale Trade Survey: Interactive Tool" (Catalogue number71-607-X) is available online. This product is based on the data published in the tables of the Monthly Wholesale Trade Survey: 20-10-0074-01, 20-10-0076-01 and 20-10-0003-01.

Contact information

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