Retail sales plunged 5.7% in April amid third wave of COVID-19 – National


Canadian retail sales in April posted their largest drop since the start of the pandemic as governments moved to deal with its third wave.

Statistics Canada said Wednesday retail sales fell 5.7 per cent to $54.8 billion in April, the largest decline since April 2020 during the pandemic’s first wave.

The agency also said its preliminary estimate suggested an additional drop of 3.2 per cent for May, but cautioned the figure would be revised.

TD Bank economist Ksenia Bushmeneva said third wave-related restrictions on non-essential in-person shopping held back retail sales in April as expected.

Read more:
Ontario restaurants ‘scrambling’ to find new staff as some choose not to return

 

“In addition to restrictions, auto dealers were also impacted by the shortage of microchips, limiting their inventory weighing on sales that month,” Bushmeneva wrote in a report.

Story continues below advertisement

“While the microchip shortage may persist for some time, other headwinds will ease. With the vaccination campaign gathering speed most provinces gradually lifting restrictions in June, consumer spending is on track to rebound strongly in the second half of the year.”

The drop in April sales was concentrated in retailers deemed “non-essential” as sales fell in nine of 11 subsectors.

Core retail sales – which exclude gasoline stations motor vehicle parts dealers – fell 7.6 per cent.

Sales at clothing clothing accessories stores plunged 28.6 per cent in April, while general merchandise stores dropped 8.1 per cent.


Click to play video: 'Toronto patios, retailers bustling amid reopening weekend'







Toronto patios, retailers bustling amid reopening weekend


Toronto patios, retailers bustling amid reopening weekend – Jun 12, 2021

Statistics Canada said sales at building material garden equipment supplies dealers fell 10.4 per cent, their first drop in nine months.

Story continues below advertisement

Meanwhile, sales at motor vehicle parts dealers gasoline stations also fell for the first time in four months

Sales at motor vehicle parts dealers fell by 1.4 per cent, while sales at gasoline stations fell 4.1 per cent in April.

Retail sales in volume terms fell 5.6 per cent in April.




© 2021 The Canadian Press



Source link