Shoe, clothing accessories & jewellery sales rise in Dec 2005

22 Feb '06

3 min read

Statistics Canada reported the retail trade for December 2005. It stated that consumer spending in retail stores advanced for a third consecutive month in December, although at a considerably slower pace than November. For the year as a whole, automotive sector sales have pushed annual retail sales growth to its highest rate since 2002.

Retail trade grew 0.3 percent in December from the previous month to a record $31.2 billion. This followed increases of 1.0 percent in November and 0.5 percent in October.

Excluding sales by dealers of new, used and recreational vehicles and auto parts, retail sales rose 0.4 percent from November. December was the only month in 2005 where sales from new car dealers were not the principal driver or drag on overall retail sales.

On the flip side, sales of the clothing and accessories stores sector edged down 0.2 percent. Sales at both building and outdoor home supplies stores and pharmacies and personal care stores fell a marginal 0.1 percent in December. This contrasts with their average growth rate of 0.8 percent and 0.7 percent respectively for the first 11 months of 2005.

Once prices are taken into account, constant dollar retail sales were virtually unchanged in December after increasing 1.3 percent in November.

Retailers posted their third best annual sales gain of the last 10 years in 2005. Retail sales advanced 6.3 percent in 2005 compared with 2004, when sales rose 4.7 percent.

The effects of inflation on retail sales have been moderate in the last two years, with annual sales growth, in constant dollars, reaching 4.5 percent in 2005 and 3.9 percent in 2004.

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