It’s the second most wonderful time of the year for Canadian retailers

Given all the commercials, gift buying, festive gimcrackery and busy shops, one might suspect that the holiday season is the most wonderful time of the year for retailers. In fact, retail sales typically peak in the spring, when Canadians emerge from their winter spending slumber.

Clothing, jewellery and electronics drive holiday shopping

For most retailers, such as clothing, jewellery, electronics and sporting goods stores, the holiday season is indeed the most wonderful time of the year in terms of total annual sales (not seasonally adjusted).

In 2022, for example, sales at clothing and jewellery stores totalled just over $4.5 billion in December, $800 million more than the second highest sales month (November) and $2.7 billion more than during January, when sales were at their lowest.

Retail sales peak in the summer when Canadians spend money on motor vehicles and on their homes and gardens

For retail sales overall, however, May reigns supreme when Canadians spend heaps of money on big ticket items like motor vehicles (just under $19 billion in May 2022) or at home and garden stores, with sales peaking at $5.7 billion in May 2022.

By way of comparison, sales at motor vehicle dealers were approximately $5 billion lower in December 2022 compared with the peak spring sales.

Retail sales at lowest ebb during the depths of winter

For virtually all retailers, sales fall to their lowest ebb in January and February, when Canadians hunker down during the depths of winter.

For example, in 2022, sales in January and February were approximately $20 billion lower than the sales peak in May and June (approximately $51 billion versus $71 billion).