Retail Commodity Survey, December 2020

Released: 2021-03-10

Retail sales totalled $56.8 billion in December, up 4.5% compared with the same month the previous year. This was the sector's seventh consecutive year-over-year increase. Higher sales were reported in 13 of the 19 commodity categories.

Looking ahead to January, the advance estimate provided by the Monthly Retail Trade Survey suggests that unadjusted total retail sales decreased 2.9%. Owing to its preliminary nature, this figure will be revised.

Holiday spending leads to gains for food and beverage retailers

Canadian retailers saw their largest gains come from food sales (+14.3%), as many consumers prepared for the holiday season at home because of restrictions related to social gatherings and travel. All product categories recorded higher sales, led by packaged food and dry goods not elsewhere classified (+17.7%), as demand remained high for chocolate and other baking supplies related to the Christmas season. Strong sales were also seen for fresh fruit and vegetables (+16.8%) and fresh meat and poultry (+16.3%) as more Canadians prepared holiday dinners as a result of the pandemic.

Soft drinks and alcoholic beverages posted a 9.1% increase, due largely to sales of alcoholic beverages (+8.5%), which represented 75.3% of the gain in beverages in December.

Automotive sales rise

Motor vehicle sales rose for the fifth consecutive month, rising 3.3% compared with the same month a year before. Gains within the category were attributable to the sale of used motor vehicles (+10.7%), which posted its seventh consecutive year-over-year increase. Sales of new motor vehicles decreased 0.5%, as consumer preferences continued to shift away from new passenger vehicles (-13.1%) and toward new minivans, sport utility vehicles and light trucks (+3.1%).

With many consumers looking for outdoor activities, sales of recreational vehicles (+67.7%) recorded their seventh consecutive monthly increase on a year-over-year basis. Gains were primarily driven by higher sales of new recreational vehicles (+72.9%), in particular new snowmobiles and personal off-road vehicles (+78.5%).

Sales of automotive fuels continued to stagnate in December, down 21.4% from the same month the previous year. This was the eighth consecutive month during which automotive fuels posted the largest decline in the sector, as lower demand and prices (-21.3%) continued to restrict sales.

Home for the Holidays

Despite limitations by certain provinces on social gatherings during the holiday season, consumers continued to spend on Christmas-related decorations, with sales of decorative home furnishings up 9.0%. Santa Claus still visited many young children, as sales of toys and games increased 12.3%. Higher sales were also seen for live plants, seeds and other home and garden supplies (+39.8%), in part as a result of higher sales of real Christmas trees.

Products associated with home improvement projects continued to be in demand, with renovation materials and supplies (+28.1%), major home appliances (+47.5%) and hardware and tools (+31.6%) posting strong sales increases compared with the same month a year before.

Contact information

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