‘Black Friday bust’: Canadian retail sales fell in November
Canada’s holiday sales period got underway in November with a 0.2 per cent decline in retail sales led by falling purchases at food and beverage retailers.
The data released by Statistics Canada on Friday revealed November’s retail sales amounted to $66.6 billion, lower than many economists had expected.
Shelly Kaushik, an economist with BMO Capital Markets, declared the month a “Black Friday bust.”
“The headline drop in retail sales was disappointing,” she wrote in a note to clients.
“Weak sales volumes point to an economy that remained at a standstill in November as consumers continue to adjust to a higher interest rate environment.”
Core retail sales, which exclude gas stations, fuel vendors and motor vehicle and parts dealers, were down 0.6 per cent in the month.
The decrease was driven by declines in four of the nine subsectors Statistics Canada tracks.
There was a 1.4 per cent drop at food and beverage retailers and a 1.8 per cent fall in general merchandise. Sales at supermarkets and other grocery retailers, excluding convenience stores, were down 1.6 per cent and beer, wine and liquor retailers experienced a 3.3 per cent fall.
“The decrease in grocery store sales wasn’t a prices story, but could possibly reflect consumers substituting towards lower-priced brands at stores, as grocery store prices are generally still rising uncomfortably fast,” said Katherine Judge of CIBC Capital Markets in a note.
The largest increase to core retail sales in November came from clothing, apparel accessories, shoes, jewelry, luggage and leather goods retailers, which rose 1.5 per cent.
The largest increase in overall retail sales in November was seen across motor vehicle and parts dealers, which were up for a third consecutive
Read more on globalnews.ca
