B.C. retailers had a banner May, enjoying stronger sales growth than counterparts in all other Canadian provinces.
The province’s brisk retail sales in May were 2.6% more than in April and 9.9% more than in May 2016, according to Statistics Canada data released July 21.
The numbers were also significant because May was the first month that B.C.’s retail sales topped $7 billion (seasonally adjusted) during a month, according to a report that Central 1 Credit Union released hours after Statistics Canada’s sales update.
“Most retail segments picked up in May, but [spending was] led by a ramp up in auto purchases and building materials,” the Central 1 report noted.
Unadjusted new and used vehicle sales growth jumped 28% (year over year), compared to a 3.2% same-month gain in April.”
B.C.’s strong 2.6% month-over-month gain was more than four times greater than the national 0.6% month over month gain.
The province’s 9.9% year-over-year growth was also significantly more robust than the country’s 7.3% increase.
Other sectors that were key drivers in B.C.’s retail sales growth were clothing (up 15%), health and personal care items (up 15.5%) and gasoline (up 17%.)
“While this pace of growth cannot be sustained, strong momentum in retail spending reflects strong levels of consumer demand driven by high levels of job growth, low interest rates, housing demand, and outside inflows of income from tourism (both international and interprovincial),” noted Central 1’s report.
Statistics Canada also reported data that showed a surge in e-commerce sales.
The national number cruncher counted $1.259 billion spent on e-commerce in Canada in May. That’s 46.9% more than in May 2016.
(Image: Statistics Canada's most recent data for retail sales across the country is for May 2017)
Month over month e-commerce sales grew at a slower annual pace, with sales in May up 3.3% over April even though May has one additional day.
(Image: Statistics Canada's most recent data for e-commerce sales in Canada is for May)
