Retail Commodity Survey, July 2021

Released: 2021-10-07

Retail sales reached $60.0 billion in July, an increase of 5.2% compared with the same month a year earlier. Higher sales were reported in 14 of the 19 commodity categories.

In August, the advance estimate provided by the Monthly Retail Trade Survey suggests that unadjusted total retail sales increased by 8.6%. Because of its preliminary nature, this figure will be revised.

Automotive fuels lead growth

Sales of automotive and household fuels posted the highest growth of all commodity groups in July, rising 35.7% compared with the same month in 2020. With increasing prices at the pump, sales of automotive fuels surpassed pre-pandemic levels, up 5.7% compared with July 2019.

Sales of motor vehicles remained strong in July, increasing 5.0% from the same month a year earlier. Growth in the category was driven by higher sales of new motor vehicles (+5.0%), with sales of new minivans, sport utility vehicles and light trucks (+6.8%) accounting for the entirety of the increase. With lower inventory levels of new motor vehicles, the demand for used motor vehicles remained strong, with sales increasing 5.0% in July compared with the same month in 2020. The majority of the increase came from sales of used minivans, sport utility vehicles and light trucks (+7.5%).

Discretionary spending in demand again

Increased spending on many non-essential retail products was observed as restrictions related to the third wave of COVID-19 began to ease across the country. Higher sales were seen in the clothing category (+17.3%), marking its first return to pre-pandemic levels. Gains were recorded in every subcategory, the largest of which were women's clothing (+14.7%) and men's clothing (+25.3%).

Projects related to home improvement continued to remain a priority for Canadians in July, with sales of hardware, tools, and renovation and lawn and garden products increasing 5.0% from the same month a year prior. The largest contributors to the growth in this category were sales of lumber and other renovation materials and supplies (+7.5%) and floor coverings and tiles (+12.1%).

Recreational vehicle sales continue to stall

For the second consecutive month, recreational vehicles saw declining year-over-year sales, causing the largest decrease in dollar terms. The top commodities contributing to the 19.2% decline in this category were new recreational boats (-29.0%) and new motor homes, travel trailers and truck campers (-15.0%).

Restaurant sales are up as retail food spending continues to decline

With the summer season and increased patio seating leading to higher sales at restaurants, sales in the food category posted their second consecutive decline, falling 0.5% in July. Sales of fresh food decreased 1.6%, with the largest contributors to the decline being sales of fresh fruit and vegetables (-4.8%) and fresh meat and poultry (-3.1%). Offsetting the decline were higher sales of packaged food dry goods (+2.5%), which were led by increased sales of packaged dry food goods not elsewhere classified (+2.0%) and cookies, confectionery and snack foods (+3.3%).

Contact information

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