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Bond of 18.7% in retail sales in may

by magictr
July 22, 2020
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Bond of 18.7% in retail sales in may
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Bond de 18,7% des ventes au détail en mai

Photo: Ryan Remiorz, The canadian Press
The retail sales increased to 41.8 billion in may after having experienced large declines during the previous two months, said Statistics Canada.

Retail sales jumped 18.7 % in may, driven by a resumption of activity within the automotive industry, after closings caused by the COVID-19, announced Tuesday by Statistics Canada.

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The retail sales increased to 41.8 billion in may after having experienced large declines during the previous two months, said the federal agency. These sales are still less than 20 % to their levels in February, before the action of distancing physics are implemented to combat the pandemic. Statistics Canada has pointed out that approximately 23 % of retailers were closed during the month of may.

Sales increased in 10 of the 11 sub-sectors. The food stores have been the only ones to see a decline in their sales, which were down 2 %.

The increase in sales is related to lower record high of 24.1% in April, while estimates suggest that retail sales increased by 24.5 % in June. All provinces and all territories contributed to the sales increase, but the recovery has been strongest in Quebec, where sales have increased by 33.3 %.

“For the moment, sales are still boosted by the massive government programs of income support and the consumers who meet the pent-up demand,” observed Royce Mendes, senior economist at capital Markets, CIBC. The expenses for travel and for recreation and entertainment remain well below last year’s levels, said Brian DePratto, chief economist at TD economics.

“The caution is because the employment is still well below the levels before the pandemic, the risk of a second wave persists, and the measures by direct income support should begin to expire at the beginning of the fall “, he wrote in a report.

According to Statistics Canada, the online sales have reached 8% of the retail market total in may. The retail sales of electronic commerce have increased were 112.7 % compared to the previous year.

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