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.

Just Posted

Amy Newman follows the route of the Cariboo Waggon Road — now Highway 97 — through Clinton. (Photo credit: New Pathways to Gold Society)
Grant received for Cariboo Waggon Road restoration project north of Clinton

New Pathways to Gold hopes to start work this summer on restoring sections of historic road

Dan Cumming (l, with Lisa Colwell, LPN) was one of 1,918 people who received their first COVID-19 vaccine at a community clinic in Ashcroft in early May. (Photo credit: Barbara Roden)
Vaccine clinics in Ashcroft, Clinton administered 2,664 first doses

Residents over the age of 18 are still eligible to receive their first COVID-19 vaccine

(from l) Ashcroft councillor Deb Tuohey, mayor Barbara Roden, and councillor Nadine Davenport at the opening of Ashcroft’s new water treatment plant in November 2019. At a recent town hall meeting, council said there are no immediate plans to install water meters in the village. (Photo credit: Christopher Roden)
Ashcroft homeowners face 2.5 per cent property tax bump in 2021

Village is moving ahead with variety of projects, but water metering not on the list of priorities

(from l) Cache Creek councillor Annette Pittman, mayor Santo Talarico, and councillors Wendy Coomber and Sue Peters at a budget meeting, May 7, 2021. (Photo credit: Facebook)
Cache Creek budget bylaws pass with one councillor opposed

Annette Pittman cites several reasons for voting against 30% tax increase and pool closure

James Chase (l) and Joan Henderson of The Equality Project in front of new refrigeration equipment the organization received last year. (Photo credit: Gareth Smart)
Equality Project hopes to get growing with a community garden

Organization is also looking for volunteers to help out at its Stage Road clubhouse

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

In this Monday, March 15, 2021 file photo a vial of AstraZeneca vaccine is pictured in a pharmacy in Boulogne Billancourt, outside Paris. Questions remained Wednesday about the future of the Oxford-AstraZeneca vaccine in Canada, as Manitoba limited use of the shot and Ontario announced it planned to save an incoming shipment to use as second doses. THE CANADIAN PRESS/AP/Christophe Ena, File
Questions remain about the future of the Oxford-AstraZeneca shot in Canada

More than two million Canadians have received AstraZeneca and 17 have been confirmed to have VITT

A Mountie issued B.C. RCMP’s first ticket for non-essential travel May 1. (Black Press Media files)
Driver ticketed, told to ‘return to Lower Mainland immediately’ by Vancouver Island police

The motorist was originally pulled over for driving-related offences May 1

Children walk back to their classroom while wearing masks and physical distancing at St. Barnabas Catholic School in Scarborough, Ont., in October, 2020. A group of B.C. teachers has issued an open letter calling for the relaxation of non-pharmaceutical interventions for children in B.C. schools. (Nathan Denette/The Canadian Press)
Group of B.C. teachers calls for easing of pandemic measures for students

Teacher group says ‘response to COVID is out of balance to the cost our youth are paying’

Adam Hamdan has been living in Christina Lake since November 2020. Photo: Laurie Tritschler
Man acquitted on terrorist charges given temporary residence in Canada

Adam Hamdan had been facing deportation to Jordan, where he holds citizenship through his Palestinian parents

Lumber is shown in the back of a van in this recent image provided by the Saskatoon Police Service. The skyrocketing prices for lumber is fuelling a trend that has authorities across the country warning builders to keep their guard up. THE CANADIAN PRESS/HO-Saskatoon Police Service-Const. Derek Chesney *MANDATORY CREDIT*
‘It is a gold mine:’ Builders warned of rising lumber thefts across Canada

Many North American mills curtailed production temporarily earlier in 2020 because of COVID lockdowns

RCMP. (Black Press File)
Major Crimes called in after 2 bodies discovered on remote road near Penticton

A manhunt involving a police helicopter took place on May 10

Vancouver court on Tuesday, March 23, 2021. THE CANADIAN PRESS/Darryl Dyck
B.C. defence lawyers call foul as Crown counsel granted access to COVID-19 vaccines

Defence attorneys are pushing the province to extend inoculation access to workers in courtrooms across B.C.

Most Read