Annual retail trade, 2023
Released: 2025-03-04
Canadian retail spending increased by 3.2% to $839.8 billion in 2023, of which $67.7 billion was e-commerce revenue. Online sales increased by 7.0%, underscoring a sustained shift toward digital platforms.
Chart 1
Operating revenues, retail sales by subsector, 2023
More than half of the retail operating revenue in 2023 was generated in four subsectors: motor vehicle and parts dealers (27.2% of retail operating revenue), food and beverage retailers (18.6%), general merchandise retailers (12.4%), and gasoline stations and fuel vendors (10.1%).
Headline inflation rose 3.9% on an annual average basis in 2023, following a 40-year-high increase of 6.8% in 2022 and 3.4% growth in 2021. Aside from 2022, the annual average increase in 2023 was the largest since 1991. According to the provincial and territorial economic accounts, the interest paid on debt as a share of household disposable income reached 9.1% in 2023. This was the highest level since 1995, resulting in consumers having less household disposable income available for retail spending.
Automotive retail industry and gas stations
Operating revenue for motor vehicle and parts dealers rose by 9.1% to $228.8 billion in 2023, while operating expenses grew by 6.1% to $30.3 billion. Additionally, the cost of goods sold increased by 10.5% to $189.3 billion, resulting in a profit margin of 4.0%.
New car dealers experienced a recovery in sales revenue in 2023, driven by better supply chains and inventory levels compared with 2022. Sales of new cars made up more than three-quarters of total sales in the subsector in 2023, with operating revenue rising by 11.5% to $176.6 billion. The inventory turnover occurred on average every 61 days, and these dealers boosted their inventory purchases by 13.6%.
In contrast, operating revenue for used car dealers saw a smaller increase of 0.9%, bringing it to $21.5 billion.
According to the New Motor Vehicle Sales Survey, passenger car sales decreased by 7.2%, while truck sales increased by 15.6%. Additionally, new zero-emission vehicle registrations increased by 52.7%, representing an 11.0% share of total new motor vehicle registrations, up from 8.2% in 2022.
Operating revenue for gasoline stations and fuel vendors totalled $85.1 billion, down 7.3% from 2022. The cost of goods sold was $71.3 billion in 2023, reaching a gross margin of 16.2%. After taking into account total operating expenses of $8.3 billion, their net profit margin stood at 6.4%, down from 7.1% in 2022.
According to the Consumer Price Index (CPI), the slowdown in energy costs was led by gasoline prices, which fell 7.6% in 2023 after a 28.5% increase in 2022. Retail prices for gasoline and fuel oil experienced fluctuations in 2023 because of key factors such as supply chain issues, increased post-COVID-19 pandemic travel and geopolitical uncertainties.
Food and beverage retailers and general merchandise
In 2023, total sales by food and beverage retailers rose 3.8% to $156.4 billion. Operating expenses rose by 4.0% to $34.7 billion, while the cost of goods sold increased by $110.7 billion, also up by 4.0%. This resulted in a slight decline in the profit margin, from 7.2% in 2022 to 7.0% in 2023.
The average price of food purchased from stores rose 7.9% on an annual basis in 2023. This increase was around double the average growth in the all-items CPI (+3.9%).
General merchandise retailers, including warehouse clubs, supercentres and other general merchandise stores, generated $103.8 billion in operating revenue, up 4.5% from 2022. Operating expenses in 2023 rose by 3.8% to $18.3 billion, while the cost of goods sold increased by 4.3% to $78.9 billion. This resulted in a profit margin of 6.4%, up from 6.1% in the previous year.
Operating revenue in the provinces
In 2023, Ontario (37.6%), Quebec (22.2%), British Columbia (14.0%) and Alberta (12.6%) accounted for the largest shares of total operating revenue, representing a combined total of $726.1 billion.
The cost of goods sold by retailers stood at $613.4 billion, representing 73.0% of total operating revenue.
Total operating expenses were $176.3 billion, including $84.7 billion in labour remuneration.
Outlook for 2024
The estimates in this release are for 2023. While the financial estimates for 2024 have not yet been finalized, preliminary results based on published data from the Monthly Retail Trade Survey are available. According to the survey, retail sales are up by 1.3% for a 12-month period in 2024. Looking ahead to 2025, the retail landscape is poised for further change. Economic considerations, including inflation, may lead retailers to adapt their strategies to balance pricing with consumer demand for value. The growth of e-commerce is expected to continue, while in-store experiences may play a crucial role in customer engagement.
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Note to readers
Data have been revised for 2022.
The operating profit is obtained by subtracting total operating expenses and the cost of goods sold from total operating revenues. The ratio is expressed as a percentage of the total operating revenues. The gross margin is the difference between total operating revenue and the cost of goods sold.
Trucks include minivans, sport utility vehicles, light and heavy-duty trucks, vans, and buses. Zero-emission vehicles are battery electric vehicles or plug-in hybrid electric vehicles that have the potential to produce no tailpipe emissions.
Data were collected for the 12-month fiscal period that ended on or between April 1, 2023, to March 31, 2024.
The inventory turnover is calculated by dividing the cost of goods sold by the average value of the opening and closing inventory for 2023. The result gives the number of times the new car dealers subsector sold and replenished its inventory in a year. To get the number of days for inventory turnover, divide 365 by the result.
These and other data related to business and consumer services can be found at the Business and consumer services and culture statistics portal.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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