New Toyota RAV4 crossover SUVs for sale are seen at an auto mall in Ottawa, on Monday, April 26, 2021. THE CANADIAN PRESS/Justin Tang

New Toyota RAV4 crossover SUVs for sale are seen at an auto mall in Ottawa, on Monday, April 26, 2021. THE CANADIAN PRESS/Justin Tang

Statistics Canada says retail sales up 4.8% in February

One strategist at BMO Capital Markets says retail sales continue to perform well when stores are allowed to open

Canadian retail sales climbed in February, boosted by sales at new car dealerships, gas stations and clothing stores, but economists cautioned the pandemic’s third wave will again dent sales.

Statistics Canada said Wednesday that retail sales rose 4.8 per cent to $55.1 billion in February, while core retail sales — which exclude gas stations and motor-vehicle and parts dealers — climbed 3.8 per cent in February, the first increase in three months.

It also said that its preliminary estimate for March suggested a gain of 2.3 per cent for the month, but cautioned the figure would be revised.

TD Bank economist Ksenia Bushmeneva said retail sales rebounded in February, and likely in March, amid the easing of restrictions put in place to slow the spread of the pandemic.

“However, progress remains highly dependent on the path of the virus, which has since taken a turn for the worse as a vicious third wave led to higher caseloads and hospitalizations,” Bushmeneva wrote in a report.

Governments across the country have imposed a fresh round of restrictions in recent weeks in an attempt to slow a surge in COVID-19 cases even as vaccination rates pick up.

“Recent spending and mobility data suggests that retail sales are likely to weaken once again in April amid renewed restrictions and stay-at-home orders,” Bushmeneva wrote.

Benjamin Reitzes, director of Canadian Rates and Macro Strategist at BMO Capital Markets, said retail sales continue to perform well when stores are allowed to open.

“Accordingly, another good gain is expected in March, but April will see a big-time reversal with restrictions tightened in much of the country,” Reitzes said.

Statistics Canada said sales at motor-vehicle and parts dealers rose 5.0 per cent in February, boosted by a 5.6 per cent increase at new car dealers and a 9.2 per cent increase at automotive parts, accessories and tire stores.

Boosting core retail sales was a 6.1 per cent gain at general merchandise stores.

Sales at clothing and clothing accessories stores also rose 23.7 per cent, the first gain for the category since September 2020, as clothing store sales rose 20.8 per cent, shoe store sales added 43.1 per cent and the jewelry, luggage and leather goods subcategory climbed 25.4 per cent.

Sporting goods, hobby, book and music stores saw a 23.5 per cent increase in sales for the month, while furniture and home furnishings stores gained 18.0 per cent.

In volume terms, overall retail sales rose 4.3 per cent in February.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Aldergrove Community Secondary. (Aldergrove Star files)
Noel Booth, Douglas Park, RE Mountain, and Aldergrove Secondary see positive COVID tests

As of Monday, May 10, 18 schools are currently on the Fraser Health exposure list

Langley’s Madison Sweeney a 5’8” forward who began her career playing for Walnut Grove Secondary, has signed with the University of the Fraser Valley (UFV) Cascades women’s soccer team. (Special to Langley Advance Times)
Langley’s Madison Sweeney signs with UFV Cascades soccer team

UFV ‘checks all the boxes’ for former Walnut Grove player

Langley is home to a wide range of outstanding athletes, ranging from cycling champion Svein Tuft to MMA fighter Tristan Connelly and figure skating legend Karen Magnussen (files)
Making a list of Langley’s outstanding athletes

Website organizer is looking for suggestions

On hand for the presentation of a cheque to the Langley Food Bank was Jim Calamunce, executive director of the food bank (L), Langley City councillor Rudy Storteboom (centre) and Mike Partridge, manager of the South Langley IGA. (R) (Special to Langley Advance Times)
Shoppers at Langley IGA stores donate $10K to food bank

Customers showed ‘incredible generosity’ says store spokesperson

A bullet hole is seen in the windshield of an RCMP vehicle approximately 4 km from Vancouver International Airport after a one person was killed during a shooting outside the international departures terminal at the airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Homicide team IDs man in fatal YVR shooting as police grapple with spate of gang violence

Man, 20, charged in separate fatal shooting Burnaby over the weekend

The Canadian Forces Snowbirds are in the Comox Valley for their annual spring training. Photo by Erin Haluschak
Suspected bird strike on Snowbirds plane during training in B.C.

Pilot followed protocols and landed the aircraft on the ground without any problems

BCIT. (Wikimedia Commons)
BCIT apologizes after employee’s ‘offensive and hurtful’ email leaked to Métis Nation

BCIT says employee’s conduct has been investigated and addressed

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

An adult male yellow-breasted chat is shown in this undatd photograph on lands protected in collaboration between the En’owkin Centre and Penticton Indian Band with support through ECCC. The rescue from near extinction for a little yellow bird hinges on the wild rose in British Columbia’s Okanagan Valley, a researcher says. THE CANADIAN PRESS/HO, A. Michael Bezener/ En’owkin Centre 2020 *MANDATORY CREDIT*
Rare yellow birds need wild roses to survive in British Columbia: researcher

The importance of local wild roses emerged over a nearly 20-year experiment

RCMP officers search around rows of luggage carts as screens block off an area of the sidewalk after a shooting outside the international departures terminal at Vancouver International Airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Police say gang conflict in Metro Vancouver may be behind shooting death at airport

Police said this generation of gangsters is taking things to new level and have no regard for community safety

RCMP are looking for information on an alleged shooting attempt near an elementary school in Smithers March 10. (Phil McLachlan/Capital News/Stock)
UPDATE: Man killed in brazen daylight shooting at Vancouver airport

Details about the police incident are still unknown

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

Most Read