Lacklustre retail sales heading into the holidays
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Clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers had a 0.7 per cent drop in sales. Photo by Christinne Muschi/The Canadian Press filesArticle contentA drop in food and beverage sales led a 0.2 per cent decline in retail sales in October, to $69.4 billion, according to Statistics Canada.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentStatCan said core retail sales, which exclude gas stations, fuel vendors and motor vehicle and parts dealers, were down for the second consecutive month, dropping 0.5 per cent. Sales of beer, wine and liquor posted the biggest decline, at 10.6 per cent.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentHowever, the drop in alcohol sales coincided with labour disruptions by public-sector workers in B.C., which included employees at provincial liquor stores.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSupermarkets and other grocery retailers across the country reported lower receipts in October, down 0.7 per cent.Article contentAside from food and beverage, sales were down in three other subsectors.Article contentClothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers had a 0.7 per cent drop in sales. Sales at health and personal care retailers were down 0.3 per cent.Article contentMeanwhile, furniture, home furnishings, electronics and appliances retailers contributed the largest increase to core retail sales in October, at 1.1 per cent.Article contentIn volume terms, retail sales for the month decreased 0.6 per cent.Article contentStatistics Canada said its advance estimates suggest a rebound in November, with sales increasing 1.2 per cent.Article contentIn a note, Canadian Imperial Bank of Canada economist Andrew Grantham said retail sales volumes likely remained below their average from the summer, even after accounting for the solid rebound suggested by the November advance estimate.Article contentArticle contentHe said the underlying trend in retail sales appears relatively flat and signals a slowdown compared to the surprising strength seen at the start of the year.Article contentRead More Sobey's parent, Empire Co., reports drop in earnings in second quarter Dollarama posts 22% rise in sales and hikes its forecast Article content“Through the ups and downs of the monthly volatility, Canadian retail sales appear to be going nowhere so far during the second half of the year,” wrote Grantham.Article contentHe added that Canada’s weakening population growth may partly be reflected in the softer underlying trend for retail sales so far in the second half of the year.Article contentBut there also seems to be some caution among Canadian households when it comes to spending, he said.Article contentGrantham said this could mean demand is not excessive and underlying inflation should continue to ease and allow the Bank of Canada to keep rates at the current lower level through 2026.Article contentIn another note, David Rosenberg, founder and president of Rosenberg Research & Associates Inc., said the downward year-over-year trend — and retail sales activity now being lower than it was at the end of 2024 — does not bode well for Q4 GDP.Article content“And markets seem to believe that in this squishy-soft demand environment, the next move by the Bank of Canada will be to hike rates,” he wrote, adding, “Not likely.”Article content• Email: dpaglinawan@postmedia.comArticle contentTrending Opinion: The no-more-pipelines MOU FP Comment Posthaste: 2026 might prove perilous for Canadians who piled into variable mortgages this year, Desjardins warns News When sinking property values raise red flags for borrowers Mortgages Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Opinion: The no-more-pipelines MOU FP Comment Posthaste: 2026 might prove perilous for Canadians who piled into variable mortgages this year, Desjardins warns News When sinking property values raise red flags for borrowers Mortgages Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment