BRITISH COLUMBIA – Retail sales rose for the third consecutive month in July by 0.6 per cent on a seasonally-adjusted basis, close to Statistic Canada’s preliminary estimate of 0.7 per cent. This marks a deceleration from the 23 per cent rise in June and a 21 per cent rise in May, as stores were reopening. Sales were up in 6 of 11 subsectors, led by higher sales at auto dealers and at gas stations. Excluding these two subsectors, retail sales declined by 1.2 per cent. Compared to the same time last year, retail sales were up by 5 per cent.
Sales were up in five provinces in July, the most notable increases were in BC, Manitoba, and Alberta. In BC, seasonally-adjusted retail sales were up by 2.1 per cent ($7.6 billion) and by 0.9 per cent ($3.4 billion) in Vancouver. Retail sales were up in the majority of subsectors, except in electronics/appliances and at auto dealers.
Growth in e-commerce sales continued to slow in July, up by 63 per cent year-over-year, following a 71 per cent rise in the previous month. The slowdown is a result of the expansion of the reopening of physical stores. In July, e-commerce sales totaled $2.8 billion, accounting for 4.8 per cent of total retails sales, down from 5 per cent in the previous month. This excludes Canadians purchasing from foreign e-commerce retailers.
Early estimates provided by Statistics Canada for August suggest that retail sales increased by 1.1 per cent. Overall, the recovery in retail sales has been V-shaped with pent-up demand largely dissipated. Government support programs and low interest rates will continue to support retail spending. However, elevated unemployment levels, uncertainty around the continuation of deferral programs, and rising COVID-19 cases could also pose challenges going forward.
