2023 Canadian Retail Numbers
The increased interest rates, loans, and mortgages are all affecting the industries in Canada, which is also causing inflation (pricing of things to go up). These two things are making people a bit worried, and it might affect how much they spend. Each year-end, statistics Canada pulls out stats for the years to help us analyze and compare the ongoing trends to predict future results.
Retail Trends 2023
Statistics Canada says retail sales rose 0.3% to $66.1 billion in July but quickly decreased in August by 0.7%. The line remained flat in September and also October. It’s safe to say that January, April, May, June, and July were the months with the most retail sales in most provinces.
The last third and fourth quarters have experienced a bit of low tide also because of the new interest rate hikes and mortgage prices.
The Consumer Behaviour for 2023
It’s also in line with the Bank of Canada’s consumer survey earlier this week, which suggested Canadians who expect more adverse effects ahead from rate hikes, strikes at the ports, and cracking on short-term rentals are more likely to spend on household goods than spend money on cars or appliances.
August saw some of the sales fluctuation in industries. Six out of nine sectors saw a decrease in sales, including car dealers and furniture, electronics appliances, and more. The stats for August also suggest that vehicle and parts dealers fell 0.9%, sales of food and beverages fell 1.2%, sporting goods and hobbies, and musical instruments books dropped 1.1%.
However, gasoline stations and fuel vendors, as higher prices, helped lift sales in the category by 2.8%. Contrastingly, sales at gasoline stations and fuel vendors fell 2.9%. Health and personal care sectors saw an increase of 1.2%.
While sales were still up slightly, the housing factor and wildfires are still alarming situations that may play a role in future trends. According to Retail Insider, the high-cost provinces in Canada, such as Ontario and British Columbia, are experiencing an impact on the retail sector. The other parts of Canada, mainly British Columbia and the Northwest Territories, witnessed a decline this year due to the terrible wildfires. Okanagan and the Northwest Territories were most affected by the wildfires in August, but they sustained well into September.
The New Direction and Challenges
Many Canadians are facing new challenges due to the rising prices of goods and services, which indicates a shift in ongoing trends. Reports indicate that over 70% of Canadians are cutting back on non-essential purchases to cope with the situation. Most of these consumers enjoy in-person shopping, and 73% visit physical stores at least monthly.
23% of Canadian consumers say stores feel busier, and they frequently stand in long lineups. For many retailers, this may also be due to labour shortages that are impacting the wider economy and affecting retailers. Retail trends 2023 statistics provide a clear review of the ongoing customer preferences and demand among Canadians.
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