Increase in online shopping moderates the COVID-19 pandemic's impact on retail sales
In 2020, with the onset of the pandemic, retail sales were impacted, as consumers changed their shopping habits and retailers altered their business practices. Retail customers spent $669.6 billion at Canadian store and non-store retailers in 2020, leading to a slight decline of 0.1% in operating revenue compared with the previous year. The effects on retail sales varied throughout the sector as consumers and businesses dealt with regional lockdowns, labour shortages, plant closures, supply chain disruptions and increased operating costs related to the pandemic.
Retail prices notably increased for passenger vehicles (+2.4%), food purchased from stores (+2.4%), fresh vegetables (+3.0%) and meat (+4.5%). Inflation slowed to 0.7% in 2020 following a 1.9% increase in 2019, as lower gasoline prices offset higher food costs. Retail sales in volume terms fell by 2.0% in 2020.
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